Strategic Cash Positions in Volatile Markets

This chapter explores the tactical role of cash positions in investment portfolios during uncertain market times, countering the belief that such assets are dormant. The discussion highlights how strategic cash management can enhance returns and mitigate risks through effective rebalancing and risk management strategies.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

On today’s episode, Clay is joined by Kris Sidial to discuss tail risk hedging. A tail risk hedging strategy is designed to help investors protect their portfolios from extreme market downturns, reducing the risk of significant capital loss. By mitigating large drawdowns, investors can potentially achieve a smoother return profile over time, enhancing their Sharpe ratio and the long-term growth of their portfolio.

Kris Sidial is the co-investment officer of Ambrus Group, which implements a carry-neutral tail risk hedging strategy to protect investors against market crashes.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:40 - What a tail risk hedging strategy is and how it’s implemented.

06:25 - What is the VIX, and how it ties into a tail risk hedging strategy.

08:28 - Examples of historical market blowups where a tail risk strategy thrives.

21:07 - Why the reflexive nature of markets has led to more violent and swift drawdowns in recent years.

31:06 - The benefits of a tail risk strategy to investor portfolios.

50:41 - Legendary traders Kris looks up to and books that influenced him the most.

And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Kris’s firm: Ambrus Group.
Book mentioned: The Misbehavior of Markets.
Episode mentioned: TIP128: Edward Thorp: Investing Legend, Math Genius.
Email Shawn at shawn@theinvestorspodcast.com to attend our free events in Omaha or visit this page.
Follow Kris on Twitter.
Follow Clay on Twitter.
Check out all the books mentioned and discussed in our podcast episodes here.
Enjoy ad-free episodes when you subscribe to our Premium Feed.

NEW TO THE SHOW?

Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
Check out our We Study Billionaires Starter Packs.
Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

SimpleMining
Hardblock
AnchorWatch
DeleteMe
CFI Education
Vanta
Indeed
Shopify
Vanta
The Bitcoin Way

Onramp

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests