Cem KarsanCem Karsan is Founder and Senior Managing Partner of Aegea Capital Management, LLC, as well as its Head of Research and Risk Management.
Mr. Karsan graduated with honors from Rice University in 1999 with a triple major in Economics, Public Policy, and English. He later graduated from Northwestern University’s Kellogg School of Management in 2006 with an MBA with emphasis in Analytical Finance and Management. Following his undergraduate studies, he worked as a volatility trader as part of RBC Dominion Securities’ Derivatives Arbitrage Group.
In 2002, Mr. Karsan left his post at RBC to work under renowned Wall Street investor John Mulheren at Bear Wagner Specialists, where he helped expand the firm’s fledgling derivatives arbitrage arm into a competitive force within the industry. At the peak of Mr. Karsan’s tenure heading the Volatility Arbitrage Group for Bear Wagner, he managed a sizable team of employees and utilized a significant portion of the firm’s tradable capital. During this period, Mr. Karsan recruited and trained many investment professionals, several of whom are currently leaders in the industry.
In 2005, as Bear Wagner’s declining specialist operations put the firm’s viability at risk, Mr. Karsan took a portion of the trading arm he managed and founded a proprietary market-making firm specializing in equity index volatility arbitrage. From 2007 to 2010, over the course of the financial crisis, his firm, Precision Capital Management, earned a compounded return to investors of many multiples of their initial investment. With its success, the firm quickly became a significant player in the products it traded, constituting approximately 13-percent of CBOE S&P 500 index option volume at its peak. In 2010, as the CBOE began to aggressively pursue electronic trading for index products, Mr. Karsan departed from market making to apply his expertise in the asset management arena by founding Aegea Capital Management, LLC.
Tim SteedTim Steed joined Aegea Capital Management in October of 2017 as a Senior Analyst.
Mr. Steed’s professional background has given him 12 years of experience as a market maker and quantitative risk manager in the equity index markets. From 2005-2013 Tim served as a market maker at the CBOE and CME in the S&P 500 options market for Consolidated Trading.
In 2013 Tim and a partner leveraged their experience and capital to form their own proprietary trading firm focusing on volatility arbitrage in the equity index, commodity, and treasury option markets. Additionally Tim was able to achieve excess returns by implementing automated trading strategies to capture pricing discrepancies in the 10 year treasury basis trade. Tim graduated Cum Laude with a degree in Finance from University of Iowa.