Show Us Your Portfolio: Cem Karsan | How an Options Expert Builds His Personal Portfolio

In this episode we speak with Cem Karsan, the most popular guest from our first 200 episodes. But this time we changed things up and asked him to talk about how he manages his personal portfolio. Many investors are used to building their portfolios using long-term buy and hold allocations to stocks and bonds, but Cem turns that on its head and takes a very different approach. We talk about the principles that guide his investment strategy, how he thinks about portfolio construction, his views on inflation and a lot more. For followers of Cem, we also ask for some breadcrumbs on dealer positioning at the end too. If you found this video valuable, you might also enjoy our other interview with Cem Karsan. In that interview, we take a deeper dive into his dealer positioning models and the basis for his macroeconomic framework. You can find that interview here. https://www.youtube.com/watch?v=wMWRWn8SNzc&t=9s #cemkarsan #vanna #charm #gamma #optionsinvesting 00:00 - Intro 02:59 - the guiding principles of Cem's personal portfolio 05:22 - will Cem ever retire? 07:24 - the importance of time 10:39 - how Cem balances time frames in his portfolio 13:09 - how selling his market making business changed Cem's approach 15:32 - the future of the 60-40 portfolio 23:06 - how 60-40 portfolio investors should think about the current environment 25:38 - the outlook for active management going forward 27:17 - how Cem thinks about bonds 30:08 - evaluating active managers 31:15 - equity investing in an inflationary world 35:58 - how Cem thinks about valuation 40:29 - Cem's thoughts on international exposure 43:10 - Looking at drawdowns 46:36 - does long equity exposure make sense in the current regime? 48:12 - inflation and Fed policy 51:56 - assets that perform well in an inflationary environment 57:30 - the importance of getting the secular trend right 01:01:11 - the role of venture capital, private equity and real estate in Cem's portfolio 01:04:08 - things Cem spends money on that are not financially motivated 01:05:59 - some breadcrumbs on current dealer positioning 01:14:15 - the one lesson Cem would teach the average investor CEM'S PREVIOUS APPEARANCE ON THE PODCAST https://youtu.be/wMWRWn8SNzc SEE LATEST EPISODES https://www.validea.com/excess-returns-podcast FIND OUT MORE ABOUT VALIDEA https://www.validea.com FOLLOW OUR BLOG https://blog.validea.com FIND OUT MORE ABOUT VALIDEA CAPITAL https://www.valideacapital.com FOLLOW JACK Twitter: https://twitter.com/practicalquant LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094 FOLLOW JUSTIN Twitter: https://twitter.com/jjcarbonneau LinkedIn: https://www.linkedin.com/in/jcarbonneau