Harley Bassman – Sizing Is More Important Than Entry Level

<p><strong>BIO: </strong>Harley Bassman is an industry thought leader and commentator on macroeconomic issues spanning decades.</p><p><strong>STORY:</strong> In 2019, Harley bought some calls and sold some puts on Citibank stock for a cost strategy. He believed the stocks would increase because all its peers were trading above their book value. When COVID came, the stocks went south, causing Harley to make his biggest loss ever.</p><p><strong>LEARNING:</strong> When something trades well below what you think its value is, consider why that’s the case. Size the investment.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“Forget timing; size the investment. Pick the size such that you’ll make enough if you’re right, and if you’re wrong, you won’t get wiped out.”</strong></blockquote><blockquote class="ql-align-center">Harley Bassman</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/harley-bassman-aa3952214/" rel="noopener noreferrer" target="_blank"><strong>Harley Bassman</strong></a> is an industry thought leader and commentator on macroeconomic issues spanning decades. He spent 26 years at Merrill Lynch. From 2014 to 2017, Harley was an Executive VP and Portfolio Manager at PIMCO. In 2011, he joined Credit Suisse’s Global Rates. In 2006, he built the RateLab, a full spectrum US Rates Trading Desk Strategy Group.</p><p>Presently, Harley is a Managing Partner at <a href="https://www.simplify.us/" rel="noopener noreferrer" target="_blank">Simplify Asset Management</a>. He continues to pen an episodic macroeconomic Commentary as well as manage a “hedge fund of one.”</p><p>Harley has a B.A. in management science from the University of California, San Diego, and an MBA in finance and marketing from the University of Chicago.</p><h2>Worst investment ever</h2><p>In 2019, Harley bought some calls and sold some puts on Citibank stock for a cost strategy. He believed the stocks would increase because all its peers were trading above their book value. Harley put more into this