The Disciplined Option

ZEGA levels the playing field for alternative investments. We turn institution-level strategies into accessible, practical separate accounts for advisors’ clients.

At ZEGA, we use options: to manage downside risk, create equity exposure, and produce alternative income streams. Options are very flexible vehicles!
Our specialization allows us to look deep into the numbers. It allows us to know the calculus underlying certain market moves, not to predict a specific market—no one can do that consistently—but to quantify the risk associated with the targeted return.

Our Strategies

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OUR APPROACH

We use options.
Over the last 10 years, option contract trading volume has increased 375%*. This sustained surge in liquidity has added greater pricing certainty to a derivative already arguably the most versatile investment vehicle traded on public, regulated markets.

By customizing the many characteristics of any option position, ZEGA Financial strives to achieve a level of precision managing portfolio risk that exceeds more common approaches like diversification (though we believe in that, too!). As an advisor, you can then more clearly target risk-weighted returns that match your client’s current situation. Off-the-rack turns into custom-tailored.

Plus, options can turn volatility into an additional income stream. That’s one of our investment strategies.

*Source: CBOE

We hedge equity investments and generate income.
At ZEGA, we use options: to manage downside risk, create equity exposure, and produce alternative income streams. Options are very flexible vehicles!

Our specialization allows us to look deep into the numbers. It allows us to know the calculus underlying certain market moves, not to predict a specific market—no one can do that consistently—but to quantify the risk associated with the targeted return.

We distribute our expertise three ways: sub-advisory services, wealth management, and fund development.

We bring clarity to risk, returns.
As the founders of ZEGA, Jay (Pestrichelli) and I (Wayne Ferbert), first cut our teeth and then reached the executive suite during the dot.com craze. We specialized in delivering institutional trading tools to retail clients. To do so, we learned to break down the complexity of investing in the stock market into manageable chunks. We created rules, you might say.

Upon breaking out on our own, the first thing we did was share these concepts in an Amazon best-seller**: “Buy and Hedge, The Five Iron Rules for Investing Over the Long Term”. Next came the regular appearances on Fox Business News, Bloomberg, Forbes, etc. to share still more.

It became apparent that while we could explain the complexity behind our investment strategies, the execution still required expertise and, possibly more importantly, time. So we created ZEGA.

Today, we continue to share—beyond the Morningstar Separate Account Report—by providing the why and how behind our strategies’ performance in our weekly updates, blog posts, and white papers.

We complement, not change, your approach.
You’ve already invested time and effort into building a client-specific portfolio strategy.  You don’t need to change that to add our profit-protecting and income-driving methodologies.

Derivatives’ long history as a tool of conservative investors makes this possible.  Plus, they truly blend well with our long-term investment horizon.

Finally, we follow the strictest of ethical codes to act only in the best interest of our clients. While this can come across as “yada, yada, yada”, we feel it is important to say.  You’ll find: “We like to say what we’re gonna do.”

INVESTMENT SOLUTIONS

Buy & Hedge Strategy

Portfolio Hedging

Good defense can get a team to the Superbowl. Good portfolio defense is intended to get your client to retirement – faster. But some of the old school choices, like allocating a greater portion of assets to bonds, isn’t necessarily the best defense. By hedging equity allocations with options, your clients continue to participate in some market upside while being protected to the downside. We believe hedging will help your clients sleep soundly through sudden market corrections or scary system failures.

High Probability Options Strategy

Alternative Income

ZEGA’s idea of alternative income is to capture the option premium generated by volatility in the stock market. The strategy is called the High Probability Options Strategy – or HiPOS. Our tactics can add income to a portfolio without exposure to rising interest rates. And, we let the client set the dial for capital at risk. The strategy’s returns, historically non-correlated to both equities and bonds, are driven by your clients’ comfort with risk.

Internet Advantage Strategy

Market Neutral & Growth

ZEGA – in conjunction with Alpha-DNA, a data mining firm – monitors the digital footprints of 2,200 publicly-traded companies. After four years of study, we’ve found a high correlation between the changes in demand for a company’s products and changes in the trajectory of its digital signal. We use this demand projection to identify potential revenue trends that are expected to surprise the markets.

Hedging Strategies

Learn More

Alternative Income

Learn More

Internet Advantage

Learn More

WEALTH MANAGEMENT

Prior to launching our first hedge fund and managing money for other advisors, we were in retail. We built institutional-quality products for self-directed retail investors who knew what they wanted to do and just needed the tools to do it. While we still appreciate that self-reliance, we came to realize that there was a class of investor who wanted direct access, who wanted control, but didn’t necessarily have the time or the expertise to run a sophisticated options program like our Buy & Hedge strategies. For individuals seeking to add an options-driven income or hedging strategy to their investment portfolio, we offer our wealth management channel. A wealth management account at ZEGA:

♦  Provides access to our money managers at all times

♦  Adheres to the tactics/rules used for institutional clients

♦  Follows a Separate Managed Account format

For More Information

Please contact our director of wealth management, Derek Moore. 

CONTACT US

777 South Flagler Drive Suite 800 West Tower, West Palm Beach, FL 33401 Service@ZEGAFinancial.com

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Give us a call today!

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  Disclosures  |  Copyright 2016 ZEGA Financial. All rights reserved.

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