Maggie Lake Talking Markets Episode 24: Sell The Rip? With Aahan Menon
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Mar 11, 2026 
Aahan Menon, founder of Prometheus Research and systematic macro investor, joins to unpack market signals and tactical positioning. He discusses systematic trading through conflict-driven shocks. Energy backwardation and an inverted VIX curve as paid hedges get attention. He also highlights global expected-return tilts away from US equities toward energy and global fixed income.
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Positive Carry Hedge From Energy And VIX Dislocations
- Systematic price-based signals can exploit rare market dislocations created by war.
- Aahan Menon points out extreme backwardation in energy and inversion in the VIX curve create positive carry hedges to stocks and bonds.
Tilt 60-40 Toward VIX And Energy During Curve Inversions
- Combine half of a 60-40 portfolio with VIX and energy exposures when curves invert to improve risk-adjusted returns.
- Backtests Aahan shows indicate a ~1.5x improvement in risk-adjusted returns versus plain 60-40 using that 50/50 tilt.
Treat Energy And VIX Positions As Portfolio Hedges Not Bets
- Use hedges as protection, not pure alpha trades; losses on hedges should be offset by gains in stocks and bonds if the shock resolves.
- Aahan warns the main loss scenario is immediate resolution, but equities/bonds would likely rally to offset hedge drag.