Terrapin Capital Management is committed to a fee-only business model that provides the utmost in service while educating clients on the steady and consistent Terrapin method of investing. Terrapin has a fiduciary relationship with each and every client. This means that we will always make decisions with our clients’ best interest in mind. Low cost investment instruments and minimizing investment fees are at the core of our philosophy. Furthermore, 12b-1 fees will never be incurred.
Our philosophy can be boiled down into a few key concepts:
- Be a fiduciary to our clients. Always represent their best interests.
- Minimize investment fees by using low cost instruments – never incur 12b-1 fees.
- Educate investors on the principals of investing, including the concept of risk versus reward and correlation of asset classes.
- Take what the market gives us – capture the market return by combining assets classes, and capture income premiums monthly by selling call options.
- Add our specialized market-neutral options strategy as a part of the overall allocation.
- Minimize asset turnover, which decreases transaction costs and minimizes taxes.
The RIA business model is the only way to achieve these objectives. The typical brokerage firm is NOT a fiduciary. They live on 12b-1 fees and commissions. They don’t have the expertise or systems in place to use options in any capacity.
We possess the extensive market expertise to use options to enhance returns and reduce risk in our managed portfolios. Most investors who dabble in option trading lose money because they lack the underlying knowledge necessary to succeed. Without the proper knowledge and expertise option trading can be very dangerous. But with a proper focus on risk management, option trading can enhance portfolio returns while limiting risk. We are EXPERTS in option trading.
