Vineer Bhansali was recently among a small group of athletes who achieved the unthinkable, a 135 mile run in scorching heat, wind gusts and rain, all while traversing both the lowest and highest elevation points in North America. The Badwater 135 is considered the most difficult Ultra Marathon, an undertaking in which a guiding philosophy is, simply, “don’t die”.As the CIO of LongTail Alpha, Vineer’s investment philosophy is also not to die – or, translated to markets – don’t get forced out at the wrong time. And in this context, he makes substantial use of derivatives, instruments that protect against the extreme events that markets all too often confront. Our conversation is a review of the August 5th risk event, exploring its causes and consequences. Unsurprisingly, Vineer sees the overconsumption of the Yen carry trade as a primary catalyst and he details the many ways in which printed, essentially free Yen made their way into risk assets of all shapes and sizes. He details how his firm navigated the flare-up, looking to trade VIX at incredibly elevated levels before the open.With a view that the market price of insurance has come back to Earth too fast and with concerns that the recent risk-off may just be an appetizer for a larger unwind to come, Vineer argues that embracing insurance strategies is an important part of a long-term strategic portfolio plan.  I hope you enjoy this episode of the Alpha Exchange, my conversation with Vineer Bhansali.