In April 2009 at the height of the financial crisis, Jeff Kaminker recognized the need for independent, high quality, professional investment advice using options strategies. Having managed a private $500 million option overlay portfolio for George Weston Ltd, Mr. Kaminker formed Frontwater Capital with a focus on investment strategies typically reserved for pension plans, financial institutions and large corporations.
The financial crisis demonstrated that managing risk solely through asset allocation was not nearly as effective a risk management tool as the large financial institutions would have you believe. Traditional long only portfolio managers wanting to minimize volatility were hit hard when seemingly safe fixed income investments, such as government and investment grade bonds, all cratered at exactly the same time as higher risk equity markets.
The decision to launch Frontwater Capital was a no brainer. Not only can option licensed portfolio managers outperform their long-only counterparts in higher returns but also in managing the overall risk profile of the investment portfolio. Suitably designed options strategies can add considerable value to a tactical asset allocation program.
Our company prides itself on being able to provide a high quality of service. Our unique boutique structure enables us to provide that same service at a reasonable cost to a sophisticated and affluent client base. Commitment to excellence, integrity and trust are the pillars of the firm that continue to guide our decisions every day.