Equity

Options Overlay Strategy

The strategy aims to reduce volatility, trade off uncertain equity market gains in exchange for consistent option premiums and manage risk relative to the underlying equity portfolio.

Competitive advantages

Outcome-oriented solutions

The team’s flexible, options-based strategies can help clients enhance income and return or protect against downside risk.

Active management layer

The team employs a systematic approach but includes an active management layer not often found in options-based strategies.

Deep experience

The team first started managing options-based strategies in the 1970s.

Investment approach

A flexible approach to creating outcome-oriented solutions

Options offer a number of positive attributes not always found in alternative investments.

Options strategies can be used to achieve specific portfolio goals, such as enhancing income, reducing risk, or protecting against the downside.

Volatility Risk Premia (VRP) are at the core of the team’s value-add.

VRP are diversified sources of excess return that have paid off persistently across different assets and asset classes over time.

A proprietary volatility forecasting model drives the options valuation process

This model is used to forecast realized volatility for every underlying index or exchange-traded fund in the investment universe to ultimately uncover relative-value opportunities in option positions.

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Composite performance

Average annual returns

Average annual returns

(as of 6/30/2025)
10/1/2007
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Gross)
-0.53
-1.49
-1.19
-1.48
-1.18
-0.90
-2.62
-2.58
Composite (Net)
-0.56
-1.58
-1.37
-1.85
-1.56
-1.29
-3.01
-2.97
Benchmark
-2.42
-8.56
-7.50
-4.98
-9.84
-6.77
-7.31
-5.48
Benchmark
-1.20
-7.89
-6.26
-3.74
-6.60
-4.45
-4.80
-3.15

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Calendar year

Calendar year

2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Composite (Gross)
-0.34
-1.08
1.52
-1.24
-8.81
-8.97
0.22
-5.43
-1.74
3.42
Composite (Net)
-0.72
-1.47
1.11
-1.63
-9.18
-9.33
-0.18
-5.81
-2.13
3.01
Benchmark
-4.69
-12.68
5.71
-7.00
-19.09
-12.93
-1.08
-7.45
-4.95
3.02
Benchmark
-1.45
-7.10
1.17
-5.91
-14.63
-7.42
-0.69
-2.01
-3.54
1.04

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Our team
Meet the investment team

The team leverages an active approach to options-based strategies, assessing relative-value opportunities to help enhance client returns.

View Team
Megan

Megan Miller

Head of Systematic Edge Options and Co-Head of Custom SMA Investments

Key risks

Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.

Alternative investment risk: Alternative investment strategies, which may include, but are not limited to, investing in nontraditional investments such as commodities, or following risk premia, managed futures, merger arbitrage, global multi-asset, long-short, market-neutral, systematic, or other tactical investment strategies, may involve complex security types or transactions and extensive short positions and/or focus on narrow segments of the market, which may increase and/or magnify the overall risks and volatility associated with the strategies.

Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.

Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.

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We look forward to helping you with your investment needs

 

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