Mary Murphy, Global Head of Institutional Distribution, sits down with the Pacific G10 Macro Rates team and Portfolio Managers Shayne Dunlap, Richard Marshall, and Oleg Gustap to discuss how their diversified strategy has delivered strong performance in a volatile market.
They explore the limitations of duration as a hedge, the advantages of daily liquidity, and how their relative value process allows them to capture alpha from dislocations and volatility.
The G10 team explains how heightened market volatility has created a “target-rich” environment for their relative value strategy. By focusing on uncorrelated trades across geographies and instruments, they’ve built a robust portfolio designed to recycle capital quickly and thrive in uncertain conditions. As they put it: “We believe in diversification, not a conviction policy.”
Video 1: HOW DIVERSIFICATION DRIVES
RESILIENCE AND RETURNS
The team explains how a diversification-first, relative value approach has helped the strategy remain resilient amid market uncertainty. They highlight how portfolio structure, trade selection, and active management are designed to thrive in volatile conditions.
Video 2: Volatility Is Opportunity:
Trading in Uncertain Times
The team discusses how heightened volatility has created a rich environment for their relative value strategy, allowing capital to be recycled more quickly and alpha to be captured efficiently. With a structurally diversified and non-correlated portfolio, the strategy is built to thrive in uncertainty, anchored in a clear philosophy: “We believe in diversification, not a conviction policy.”
Video 3: Diversification Over Conviction:
Thriving in Volatile Markets
The team discusses how recent market stress has opened up asymmetric opportunities, including emergency rate cut trades and dislocated spreads. They highlight the importance of balancing risk, protecting capital, and staying agile through volatility. With a portfolio of 40–50 independent strategies, the G10 team avoids concentrated macro bets, focusing instead on structural diversification and consistent risk management.
