Manager Management
Resume:
PAUL D. KNUDSVIG
**********@***.*** ; https://www.linkedin.com/pub/paul-knudsvig/11/217/503
Objective
Derivatives Portfolio Management, Asset/Liability Risk Management, Hedging Strategy and Trading
Summary of Qualifications
Innovative Derivatives Portfolio Manager, Asset/Liability Risk Manager, Hedge Strategist and Trader, with over 20 years of experience and success striking the right balance between risk and reward within hedge funds, asset management, insurance, banking and consulting firms, as well as futures exchanges. Managed derivative products portfolios of up to $45 billion in interest rates, equity, options, credit and FX. Excel in identifying and implementing creative, highly-profitable solutions to problematic positions. Key areas of expertise:
Asset/Liability Management Options/Caps and Floors/Swaptions/Synthetics/Exotics
Portfolio and Hedge Fund Management New Product Development/Structured Products
Derivatives Trading--Exchange-traded & OTC Statistical/Stochastic Analysis & Modeling
Hedging Strategy Basic Literacy in C & C++ Programming
Unique Accomplishments:
Grew derivative products portfolios of Alliance and AXA Equitable from $1B to $45B during 13-year tenure.
Created, negotiated and executed the first Total Return Swaps, enabling the firm’s first Portable Alpha product.
Created, negotiated and executed the first Portfolio Liquidity Put Option, simultaneously creating the first Market Value CBO with a legally-defined maturity of principal.
Created, designed and wrote Application for Designation as a Contract Market in Five-Year U.S. Treasury Note Futures and Application for Designation as a Contract Market in Crude Petroleum Futures, submitted to and approved by the Commodity Futures Trading Commission.
Professional Experience
DGV ADVISORY 2009-Present
Asset/Liability Risk Management and Hedging Advisory Consultant
Provide asset/liability risk management and hedging advisory/consulting services as an independent consultant to asset management firms, hedge funds, insurance companies, commodity producers, manufacturers and management consulting firms. Representative assignments: alpha isolation, options strategies, long-dated gold swaps with extensive prospectus and ISDA covenants, M&A funding, rating agencies: investors’ perspective.
ARTIO GLOBAL INVESTORS, LLC 2006-2008
(Formerly Julius Baer Investment Management, LLC), New York, NY
Senior Portfolio Manager and Co-Head of Diversified Alpha
Designed, structured, launched, and managed Artio Global Diversified Alpha Fund (formerly Julius Baer Global Alpha Fund), a market-neutral, multi-strategy hedge fund, utilizing existing products in international equity, domestic equity, global high-grade bonds and global high-yield bonds. Wrote (and maintained compliance with) prospectus guidelines.
Created variance/covariance matrix model to determine optimal leverage per product and asset allocations. Determined overall leverage of 2.3 times (individual products levered 0.25 to six times) could produce the Sharpe Ratio targeted by our marketing group. Presented recommendations to the Management Committee and was directed to proceed with product launch.
Coordinated and led teams made up of Product Management, Risk, Operations, Marketing, Portfolio Management, Compliance, Legal, IT, Administrator, Custodian, Prime Broker, outside counsel and HR to create the logistical infrastructure to launch and manage the Fund.
Trader for beta hedging (exceeding all four benchmarks), funding (realizing fed funds + 28 bp, on average) and responsible for allocations across the Diversified Alpha Fund’s constituent asset classes.
The Fund was down 0.50% year-to-date, October 17, 2008 (the average hedge fund was down more than 20%), when the majority investor (a London fund of funds) had to redeem, resulting in the decision to liquidate. The Fund was cleanly closed by December 31, to the great satisfaction of all involved parties.
ALLIANCE CAPITAL MANAGEMENT CORPORATION and 1992-2005
AXA EQUITABLE LIFE INSURANCE COMPANY, New York, NY
(Dual officer of both Alliance Capital Management, AXA Equitable Life Insurance and their affiliated entities.)
With progressive trust and responsibility, grew the use of derivative products for hedging from $1 billion notional upon arrival to in excess of $45 billion notional as the in-house derivatives subject matter expert, providing risk management
PAUL D. KNUDSVIG Page 2 of 3
consulting services to Alliance Portfolio Managers and Equitable’s CIO and Investment Officers for market, trading and legal exposure analysis, hedging alternatives, issues involving cash flow v. capital gains and other accounting concerns. Applied derivative products to the various portfolios to reduce market risks and generate higher-quality investment returns. Strategies utilized futures, swaps, options, swaptions, caps, floors, synthetic options and FX forwards.
Alliance Capital Management,
Director of Derivative Strategies, Senior Portfolio Manager and Trader, 1999-2005
Derivative Products Portfolio Manager and Trader, 1995-1999
Derivatives Quantitative Analyst and Trader, 1992-1995:
Created and negotiated the first bond Total Return Swaps, simultaneously creating the first Portable Alpha product, enabling investment to a LIBOR benchmark. Saved large contract, generating over $3 million/year.
Created and negotiated the first Portfolio Liquidity Put Option, simultaneously creating the first Market Value CBO with a legally-defined maturity of principal. This breakthrough generated millions of dollars in fees.
Created a Portable Alpha structure for a pension plan, investing in a long-duration portfolio of futures, freeing $1.6 billion to be invested in the plan’s desired allocation of alternatives. Managed and traded the beta hedges, with defined discretion, exceeding benchmark by more the $25 million (> 600 bp) per year for over five years.
Created multicurrency, multinational structures, enabling our products to be sold to foreign customers in their home currencies. Such structures (ultimately an $8 billion synthetic CDO) generated millions of dollars in fees.
Co-project manager for creation of a “derivatives workout” CDO structure for a European financial institution. Consequently, the institution was able to avoid losing more than $200 million.
Negotiated ISDAs, prospectuses and other legal contracts required to affect all manner of derivative products.
Maintained derivatives compliance with all applicable regulations, policies and contract guidelines.
AXA Equitable Life Insurance,
Derivative Products Portfolio Manager and Investment Officer:
Served as the focal point for trading, market, compliance, regulatory, legal, accounting and product development/pricing matters related to all uses of derivative products.
Researched trade recommendations and consulted with the CIO on structuring and implementing strategic asset/liability management positions.
Found shorts which enabled long-dated put options to be purchased against an originally modest warrants position that had become a huge exposure to restricted equity shares. The options enabled the sale of the shares at $60 million over prevailing market prices, once the shares were no longer restricted and could be sold.
Led team to prepare Operational Plan for Hedging and Income Enhancement Transactions, submitted to and approved by the New York State Insurance Department.
Led teams to prepare the Equitable and the industry response to the proposed Financial Accounting Standards Board accounting standard for derivatives, later implemented as Financial Accounting Standard 133.
Prior Employment
CHASE MANHATTAN BANK, New York, NY
Global Bank Deputy Treasurer, 1990-1992
UNION BANK OF SWITZERLAND, New York, NY
Derivative Products Group Manager, Treasury, 1987-1990
Vice President Treasury, 1988-1990
Assistant Vice President, 1987-1988
CHASE MANHATTAN BANK, New York, NY
Derivative Products Trader, Global Funding, Corporate Treasury, 1986-1987
POWERS RESEARCH, INC., Jersey City, NJ
Senior Consultant and Economist, 1985-1986
DATA RESOURCES, INC., Washington, DC
Financial Consulting Team Leader and Economist, 1982-1985
Senior Consultant, 1983-1985
Consultant, 1982-1983
CHICAGO BOARD OF TRADE, Chicago, IL
Associate Economist, New Products Group, Economic Analysis and Planning, 1981-1982
PAUL D. KNUDSVIG Page 3 of 3
Education and Training
Courses in Hedge Fund Operation Risk and Due Diligence, C++ Programming, Object-Oriented Analysis and Design
New York University, 2012-2014
Advanced Options Pricing Seminar
University of Chicago Booth School of Business, 2000
MBA, Finance and International Business
University of Chicago Booth School of Business, 1982
BA, General Honors in Economics and Professional Option: Business
University of Chicago, 1981
Institute on Comparative Political and Economic Systems, Goldwater Scholar
Georgetown University, 1980
Professional Affiliations
Current Memberships:
University of Chicago Economics Alumni Association
Global Association of Risk Professionals
Professional Risk Managers’ International Association
Former Memberships:
Chicago Board of Trade, Chicago, IL
New Products Advisory Committee, 1994-2005
Financial Instrument Exchange (FINEX), New York, NY
Industry Advisory Board and New Products Committee, 1986-1990
President’s Private Sector Survey on Cost Control in the Federal Government, Washington, DC
(“Grace Commission”); Task Force Member and Staff Economist, Banking and Investments, 1982-1983
Community Service and Honors
District Program Chair, Council Training Committee, Cubmaster, etc., Westchester-Putnam Council, BSA, 2001-Present
Parents Committee, St. Lawrence University, 2016-Present
Recipient of Silver Beaver Award for Distinguished Service to Youth, National Council, Boy Scouts of America, 2009
Conservation Commissioner, City of Rye, NY, 2003-2008
Recipient of District Award of Merit for Distinguished Service to Youth, Westchester-Putnam Council, BSA, 2005
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