Philosophy

At Gateway, we believe that:

Equities Are Risky, But Reliable

Despite short-term risks, diversified equity portfolios have historically outpaced inflation. Combining equity exposure with index options can mitigate losses and benefit from long-term market growth.

Options Help Manage Risk

Options-based strategies can enhance risk-adjusted returns by accessing the implied volatility risk premium, generating cash flow, and reducing equity market risks.

Broad Application Offers Multiple Solutions

Index option-based strategies can enhance equity portfolios, diversify fixed income, and offer a liquid, transparent, low-cost alternative component.

Active Judgement Can Improve Outcomes

Each market environment and investment objective is unique, requiring a dynamic tool kit. A disciplined, active investment process, backed by an experienced team, can add value and improve investor outcomes.

Why Index Options?

Equity risk premium exposure – a reliable source of long-term real returns
Volatility risk premium exposure – a reliable source of potential alpha
European-style expiration – maintains control of options portfolio
Cash-settled – maintains control of underlying portfolio
Exchange-traded – avoids counterparty risk
Robust liquidity – avoids illiquidity risks
Deep, competitive market – low transaction costs
For taxable accounts – facilitates loss harvesting and tax efficient returns

We believe that consistency is key to long-term success

At Gateway, our team is focused on applying decades of experience in quantitatively driven equity portfolio management and index option-based investing to meet our clients’ specific investment needs. Our approach seeks to maintain equity market exposure while managing volatility to enhance risk-adjusted return.

We believe that the consistency fostered by a team-oriented approach is one key component of long-term success. Our extensively experienced portfolio management and operational teams are in regular communication and coordination, offering clients and prospects a collaborative approach in building both active and rules-based solutions that address unique investment goals and objectives.

Risk management is a core tenet of our investment philosophy

Gateway takes a comprehensive approach to investment risk management.

Index-based options are our investment risk management instrument, embodying our overall risk management philosophy. The hedging overlay relationship between index options and diversified equity portfolios removes an element of uncertainty that is often associated with risk management approaches that are based on asset class diversification or long-only/long-short individual security selection. This relationship gives our risk profile analytics a level of reliability that facilitates real-time decision making. It also allows for stress testing the entire portfolio in different market and volatility environments and enables us to measure the effects of changes in the portfolio prior to implementation.