HEADLINES
April, 2007 - Parametric creates structured options portfolio capability
We are pleased to announce a new capability within our suite of services for
the high-net-worth investor.
In March of 2007 Parametric signed a definitive agreement with Managed Risk
Advisors, LLC (“MRA”), an investment management and derivatives investment
advisory firm based in Westport, Connecticut. Under this agreement, MRA will
merge with Parametric Risk Advisors LLC (“PRA”), a newly formed Parametric
affiliate specializing in the use of options and other derivatives in the
management of client investment portfolios. The transaction is expected to
close in four to six weeks, subject to standard client consent and regulatory
requirements. MRA and its principals have built an outstanding reputation by
offering and executing option based investment strategies to meet the
challenges and needs of the low-basis, highly concentrated stock investor. We
expect to continue with this focus as well as extend Parametric Risk Advisors’
skills into other investment products. As a quantitative, structured investment
manager, we view derivatives both as a natural extension of our capabilities
and an area in high demand from our private client marketplace.
MRA was formed in 2002 by Brad Berggren and is operated by its Managing
Directors, who are Mr. Berggren, Ken Everding, Jon Orseck, and Larry Berman.
Each has 10 to 15 years of derivatives industry experience, with stints at
firms including Merrill Lynch, Credit Suisse, Bear Stearns, Morgan Stanley, JP
Morgan, Bank of America, and Wolverine Trading. MRA has been serving as an
advisor to a number of leading wealth management organizations and currently
manages approximately $200 million in discretionary investment mandates
employing options and other derivatives.
PRA will operate as an affiliate of Parametric under the direction of its
senior executives in Westport, Connecticut. PRA will offer managed covered call
writing programs to enhance the risk and return of both concentrated stock
positions and diversified equity portfolios. Additionally, PRA will advise on
the structuring of various hedging and monetizing strategies used in the
management of concentrated stock positions.
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