Creating an anti-fragile portfolio

I ONCE worked as an equity derivatives intern at Credit Suisse First Boston in London. As at other investment banks, the team had three distinct types of members: salespeople, traders, and structurers. The latter were almost exclusively polymaths from the top French engineering schools who had few job opportunities in Paris but surprisingly well-compensated ones across the English Channel.

Their core role was to create innovative new products that they first pitched to the team during daily 7 am meetings. In one such meeting, the managing director asked if the proposed product was long or short volatility.

The structurer was stumped and could not run through the complex derivative solution quickly enough. So he blushed and mumbled that he would revert later with an answer.