Derivaty Co. offers ongoing portfolio management services, primarily operating as a subadviser to unaffiliated third-party investment advisory firms. The firm customizes its services for each subadvisory client through an initial interview to understand their specific needs and requirements, utilizing quantitative analysis and options trading strategies such as covered options, uncovered options, and spreading strategies. Derivaty Co. requests the authority to make trades without asking clients first, and clients may impose restrictions on investing in certain securities that align with their values. Derivaty Co. does not participate in any wrap fee programs and does not accept performance-based fees. The firm's investment approach involves quantitative models and options trading, which carries inherent risks of market loss and leveraged risks associated with options contracts. Derivaty Co. manages discretionary assets and works with unaffiliated advisors to provide portfolio oversight, aligning investment decisions with fiduciary obligations to seek fair and equitable allocation of investment opportunities over time.
Fee Structure
Derivaty Co. generally acts as a subadviser to unaffiliated third-party advisers, and Derivaty Co. receives a share of the fees collected from the third-party adviser's client. The subadviser fees are negotiable and will not exceed regulatory limits. These fees may be withdrawn directly from client accounts or clients may be invoiced directly, as specified in each contract between Derivaty Co. and the applicable third-party adviser.