Sander Gerber's Hudson Bay Capital has been sailing unmoored by the troubles that have beset most hedge funds this year, and that is due to the Hudson Bay "system," a rigorous method for "avoiding beta." In this episode, Sander talks about that method and how Hudson Bay makes its investment decisions.

Hudson Bay Capital Management LP is an absolute-return, multi-strategy alternative investment firm, and Sander is its CEO and Chief Investment Officer. He became a member of the American Stock Exchange in 1991, acting as an options market maker. In 1997, he founded Gerber Asset Management LLC to develop and engage in proprietary investment strategies. In 2005, he founded Hudson Bay, which absorbed Gerber Asset Management's business. Sander graduated from the University of Pennsylvania and The Wharton School and first worked with Bain and Company. He is a member of the Council of Foreign Relations and The New York Economic Club and chairs the Investment Management Committee at the Woodrow Wilson Center in Washington, D.C.