Question:
Tell us about your first three jobs (e.g., First: waiter; Second: cashier; Third: credit analyst)
Answer:
- • Lifeguard at 16
- • Waiter at 20
- • Restaurant Manager at 22
Question:
Please, introduce us to your firm.
Answer:
ZEGA Financial was founded in 2011 with the philosophy that we see a different way to invest. Understanding risk and reward is our passion. We like to say that risk is what you take on; return is what you plan for. We use complex tactics to take profit, and protect from volatility, in the marketplace. Yes, we like the options calculus, but we understand the fundamentals. We are conservative in our market positioning and follow the strictest of ethical codes to act only in the best interest of our clients. At the end of the day we consider ourselves progressive in our strategy but old school with our discipline. With over 120 years of investment management experience, our goal is to make a positive difference for the investors who utilize our strategies. ZEGA Financial has been featured on CNBC, Fox Business, Nasdaq, The Street and more.
Question:
Recall your journey in the financial services domain (when, where, how). What attracted you to the financial advisory world?
Answer:
At 12 years old, my 6th grade teacher held a stock picking challenge and that’s where I caught the stock market bug. Supported by serious films like Wall Street and comedies like Trading Places, the market always had my interest. Although my education was in engineering and behavioural science, I eventually found my way into the online brokerage industry serving the self directed investor. I spend most of my time at TD Ameritrade building and running their active trader and education business. After 12 years, I ventured out on my own writing a best-selling investing book, Buy and Hedge: The 5 Iron Rules for Investing over the Long Term and starting my own RIA, ZEGA Financial.
Question:
What turning points in your professional life significantly shaped your career?
Answer:
The opportunity to run TD Ameritrade’s trading business was a huge change for me and really propelled my persona impact to the space.
Question:
How is your advisory strategy different from others? Is technology a differentiating factor?
Answer:
We run option-based strategies for more than 3,000 accounts. Without today’s tools, that would not be possible to effectively track and manage all of those custom portfolios. I could not afford to be in business without the assistance of technology.
Question:
How did your career in financial services happen?
Answer:
Entry level to the online brokerage space came in 1998 when a friend joined. I followed his footsteps and knew I was in the right place.
Question:
Where do you see your firm in the next five years?
Answer:
As a money manager, our expectation is to continue to grow our strategy offering, solidify our place as options experts, and increase the number of advisor relationship we have. I expect our assets under management to double as a result. As such, we will need to grow our capabilities from a trading skill set, but also develop new technology support that supports our unique business needs.
Question:
If money and resources were not a consideration, what changes would you make to bring your firm to the next level?
Answer:
Acquisitions. Buying other advisor firms is the easiest way to grow AUM. There is a trend of consolidation in the RIA business but it has been delayed due to the extended bull market. When the market eventually corrects, there are over 10,000 RIAs that are of retimement age looking for an exit. Being able to integrate those will be the best way to spend time and capital.
Question:
What future technology do you think could change lives entirely?
Answer:
Fintech growth has no bounds at this point. As the market bifurcates between the cheaper robo services and full services designed to deliver premium value, technology will be needed to support both. The importance of sustained connectivity cannot be understated. Blockchain will likely supplant current legacy infrastructure, Programmatic trading will continue to replace human interaction, and globalization of the markets will connect investment opportunities regardless of geographic location. The firms that will succeed are those that can bring new products to light and not just squeeze costs out of legacy systems.
