SpiderRock Advisors Adds StratiFi’s Option Solutions Business

CHICAGO and SAN FRANCISCO, April 11, 2018 /PRNewswire/ — SpiderRock Advisors, LLC (SpiderRock), a rapidly growing asset management firm focused exclusively on providing customized option overlay strategies to advisors and institutions, today announced that it has entered into an agreement with StratiFi Technologies Inc. (StratiFi) to add StratiFi’s investment solutions business to the company.

The transaction brings together the two leading, technology-enabled option overlay providers to the wealth management industry and expands SpiderRock’s footprint by adding team members in San Francisco and Boston, in addition to its Chicago headquarters. StratiFi’s technology business is not part of the SpiderRock transaction and remains independent.

StratiFi will continue to focus its resources on growing its cutting-edge, web-based platform that is designed to empower wealth advisors with its automated risk scoring technology, PRISM, and recommending different hedging solutions while also expanding its offering and providing its clients with access to SpiderRock products and solutions.

The transaction is expected to close in the second quarter of 2018. Terms were not disclosed.

“We welcome StratiFi’s clients and expertise to SpiderRock,” said Eric Metz, SpiderRock President and Chief Investment Officer.  “This transaction enhances our capabilities in key markets where we are experiencing growing demand for our investment strategies.”

“Separating StratiFi’s SaaS Platform and asset management businesses was the impetus for finding a strategic partner, and SpiderRock’s capabilities in portfolio management and tech-enabled implementation elevated them as the best choice,” said Ralph Drybrough, StratiFi Co-Founder and President. “We’re thrilled to be joining our solutions business with the SpiderRock team.”

The addition of the StratiFi business will be immediately accretive to SpiderRock.  SpiderRock services a rapidly growing community of geographically diverse advisors who collectively advise on assets in excess of $200 billion.  These advisors rely on SpiderRock to provide best-in-class risk management solutions and highly scalable implementation across all major custodial platforms.

SpiderRock’s unique capabilities allow advisors to complement existing investment programs with a suite of customizable option overlay solutions. SpiderRock uses proprietary financial technology to build and manage investment strategies for all market conditions.   Strategies include:

  • Portfolio protection: Reducing downside exposure on the heels of the extended market run-up;
  • Volatility management: Managing the amount of variation in the values of client portfolios as goals-based investing has become a focal point in financial planning;
  • Putting new assets to work: Helping clients with large cash positions deploy capital by implementing option strategies that pick market entry points; and
  • Rebalancing: Reducing portfolio beta (in a tax efficient manner) back to initial strategic targets after experiencing portfolio drift, essential for model based portfolios.