Jon Havice, Founder and CIO, DGV Solutions

It was a pleasure to welcome Jon Havice, Founder and CIO of DGV Solutions, back to the Alpha Exchange. Our conversation explores systematic investing, volatility risk premia, and portfolio construction for institutional investors.

 

We begin with Jon's path from trading currency options and derivatives at O'Connor and UBS through hedge fund management and investment consulting before founding DGV Solutions. He reflects on advising endowments, foundations, and healthcare systems, and explains how those experiences shaped a philosophy centered on delivering liquid, systematic investment strategies designed to help institutions pursue long-term objectives while managing downside risk.

 

The discussion focuses on DGV's approach to accessing equity beta through a collateralized put-write strategy. Jon discusses the volatility risk premium as a persistent feature of options markets, comparing it to traditional insurance markets where investors are willing to pay for downside protection. He explains how systematic option-writing seeks to capture that premium while emphasizing disciplined risk management, position sizing, and maintaining sufficient collateral through changing volatility regimes.

 

We then broaden the conversation to the firm's suite of strategies across asset classes. Jon outlines how DGV applies carry, value, momentum, and trend factors differently across equities, foreign exchange, and commodities, noting that each market exhibits distinct characteristics that influence which factors have historically been most effective. Examples include combining value and carry in developed market currencies and pairing carry with momentum in commodity markets.

 

The latter part of the discussion focuses on portfolio construction, leverage, and risk management. Jon explains why DGV places significant emphasis on stress testing, limiting leverage, and maintaining control of portfolio positions through periods of market stress.

 

We conclude with Jon's perspective on diversification, artificial intelligence, passive investing, and structural changes across financial markets that continue to influence institutional portfolio management.

 

I hope you enjoy this episode of the Alpha Exchange, my conversation with Jon Havice.