Risk and Reward with Marek Capital Co-Founder Matt Cherwin - Masters in Business Recap

Podcast: Masters in Business

Published: 2026-03-13

Duration: 1 hr 0 min

Guests: Matt Cherwin

Summary

Matt Cherwin, co-founder of Marek Capital, discusses his journey through major financial institutions and the unique investment approach at Marek, focused on understanding market systems and exploiting regulatory changes.

What Happened

Matt Cherwin, co-founder and CIO at Marek Capital, shared insights from his extensive career at JP Morgan Chase and City Group, highlighting how his experiences shaped his understanding of credit and trading. He reminisced about his initial dislike for economics, which he found too abstract, and his eventual passion for finance and trading, which he found practical and engaging.

Cherwin described a transformative moment in 2019 when he moved to a CIO role at JP Morgan right before the repo crisis and the pandemic. This period revealed to him the intricate workings of the financial system, akin to moving from the captain's deck to the engine room, and gave him a clearer perspective on risk and market dynamics.

Marek Capital was founded on Cherwin's insights into money, capital, credit, liquidity, and regulation, which he believes drive economies and markets. He and his partner, Derek Woman, apply these principles to navigate markets and identify opportunities, particularly in the evolving landscape of credit and liquidity provision.

Cherwin noted the current market's fragmentation, with new players like Apollo and Blackstone taking over roles traditionally held by major banks. This shift creates opportunities for firms like Marek to exploit regulatory changes and inefficiencies in how credit is extended.

He also discussed the influence of regulatory changes and the potential impacts of new appointments to the Federal Reserve, highlighting how these shifts could reshape market dynamics and create new investment opportunities.

Looking ahead, Cherwin emphasized the potential for significant financial changes and the opportunity to capitalize on the mispricing of assets, especially in securitized markets. He sees Marek's unique blend of trading and risk management skills as key to navigating these complex environments.

Cherwin concluded that understanding the financial system's mechanics is crucial for finding investment opportunities, and that Marek's approach allows them to improve returns while reducing risk by leveraging their deep understanding of market systems and dynamics.

Key Insights

• Matt Cherwin's shift from a captain's view at JP Morgan to the 'engine room' during the 2019 repo crisis gave him firsthand exposure to market mechanics, challenging the typical executive distance from operational complexities. This experience reshaped his approach to risk management, highlighting how direct engagement with market dynamics can lead to more informed decision-making.
• Marek Capital capitalizes on the fragmentation in today's credit markets, where firms like Apollo and Blackstone have supplanted traditional banks. This shift allows Marek to exploit regulatory changes and inefficiencies, revealing opportunities previously monopolized by established financial institutions.
• Regulatory changes and new Federal Reserve appointments significantly impact market dynamics, creating fresh avenues for investment. Marek Capital's approach involves identifying these shifts to anticipate market movements and uncover undervalued assets, particularly in securitized markets.
• A deep understanding of financial system mechanics is at the core of Marek's strategy, allowing for improved returns with reduced risk. This approach is rooted in recognizing mispricing in assets, driven by Cherwin's insights into money, capital, credit, liquidity, and regulation, which he argues are the true drivers of economies and markets.

Key Questions Answered

What is Marek Capital's investment strategy according to Matt Cherwin?

Marek Capital's strategy involves understanding the financial system's mechanics, focusing on money, capital, credit, liquidity, and regulation to identify market opportunities, especially in the evolving landscape of credit and liquidity provision.

How did Matt Cherwin's experience at JP Morgan shape his views on risk?

Cherwin's stint as CIO during the 2019 repo crisis and pandemic gave him a deeper understanding of financial systems, likening it to moving from the captain's deck to the engine room, which transformed his approach to risk management.

What impact do regulatory changes have on market opportunities, according to Matt Cherwin?

Cherwin sees regulatory changes and new Federal Reserve appointments as catalysts that could reshape market dynamics, creating opportunities for firms like Marek to exploit inefficiencies and mispricing in credit and liquidity markets.