To provide the context, Mai was one of those who successfully navigated the… That’s right, this smart roadrunner found out how to get the same exposure to the S&P as everyone else – for nearly half the price. So I came across an interesting article the other day, which happens to be an interview given by Jamie Mai. There are 90+ professionals named "Jamie Mai", who use LinkedIn to exchange information, ideas, and opportunities. Two young, obscure start-up investors, however, heeded Lippmann’s call and saw the opportunity of a lifetime staring them in the face. Because they saw that the triple-A bonds were just as vulnerable to collapse as the triple-B bonds, but the swaps against them weren’t priced that way. The first big idea was Capital One Financial. On August 6, 2007, at a pub in the south of England (where he was on vacation with his family), Ben Hockett logged onto his laptop and looked for buyers on $205 million in swaps on double-A tranches of subprime mortgage CDOs. By February 2007, they owned $205 million worth of credit default swaps against double-A CDO tranches. View the profiles of people named Jamie Mai. Capital One Financial is a subprime credit card company that was accused of fraud. Either the government would step in and guarantee the bad subprime loans, or the banks they’d bet against (like Bear Stearns) would go bankrupt and be unable to pay them. View Jamie-Mai Wright’s profile on LinkedIn, the world’s largest professional community. Big Short Chapter 5 Summary Accidental capitalists A trader known as Charles Ledley comes to know about the Lippmann’s pitch from a friend. Two young, obscure start-up investors, however, heeded the call and saw the opportunity of a lifetime staring them in the face. Information about the college and college activities, admissions, online courses, and information the library. Your email address will not be published. She’s published dozens of articles and book reviews spanning a wide range of topics, including health, relationships, psychology, science, and much more. See James A Mai's compensation, career history, education, & memberships. It’s a money management firm. The Complete Guide to Portfolio Optimization in R PART2. Since he got the XLP options for half the price of an equivalent S&P option, this means that he can basically ignore theta decay for those first 3 years! Genius goes shopping for XLP options. She feels that attending UST has been a calling, she knows several people who have attended UST, and loved the opportunity to participate in a … Charlie Ledley and Jamie Mai are outsiders because they have very little formal experience on Wall Street and take the unpopular position of making long-term bets. That works too, I suppose. Owing to the quirks discussed earlier, the XLP has also tracked the performance of the S&P (despite having a beta of 0.5), and its share price is now $1.2X. It’s a money management firm. Jamie bought XLP options, while Bob bought S&P options. The plan was to uncover inefficiencies in the market. Via Business Insider , here’s an easy guide of the actors, their fake characters; lined up with the reported real life market mavens and hedge funds. When Charlie Ledley, Jamie Mai, and Hockett heard Lippmann’s pitch, they recognized credit default swaps as just another type of option, the kind they’d been trading in for years. James A. Mai is the Chief Investment Officer of Cornwall Capital, a New York City-based private investment firm he founded in 2002. Believe the opportunity of a lifetime staring them in the US and South Africa a strategy... Measures relative price patterns in the short-term quite reliably, the XLP approximately tracks the &... World had heard of Charles Ledley in 2003 the small picture, the beta inevitably becomes one the. 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