solutions for growth
We believe pricing inefficiencies exist in the equity and derivative markets. Two Fish is an SEC Registered Investment Advisor that offers investment strategies designed to exploit these inefficiencies to create income for our clients.
By taking a disciplined approach to selling out-of-the-money (OTM) options, we attempt to deliver excess risk-adjusted returns over time. To achieve this goal, we employ an assortment of strategies.
The PUT Strategy writes OTM put option contracts on equities that are viewed as undervalued, oversold and lightly levered. The strategy goal is to create an income stream from the sale of puts. Clients can select account collateral or use existing positions, such as a large single stock position that the client does not want to sell, providing a foundation for the PUT overlay strategy.
The Iron Condor is a limited risk strategy using options and leverage. Through it, OTM put and call spreads are sold. The strategy goal is to select stocks that will stay within a defined range over the duration of the option contract. By buying and selling the same number of put and call contracts, risk is limited, and the maximum loss per trade is capped in the strategy.
The Index Spread Strategy generates income by writing deep OTM equity index put contracts while buying an even further OTM put contract to manage risk. The goal is to sell the put option into a market that appears to be either trending higher, oversold or stabilizing. Occasionally, this strategy may incorporate a call side in a downtrending market with inflated volatility.
Hedged High Yield
Hedged High Yield Strategy is the PUT Strategy with leverage. We invest close to the entire account equity and any premium received from the sale of puts in bond funds and equities with upcoming catalysts for value realization. To compensate for the leveraged exposure, we sell either index futures or index exchange traded funds short to reduce market risk. Our strategic target is zero net market exposure.
McEwen Mining Report
Empirical Study on Barrick Gold
who we serve
We provide our clients with full-service option solutions, including idea generation, block trade execution, institutional commissions, risk analytics, client reporting and access to Two Fish principals.
Our broker-dealer model was developed for those who want to provide an option-based income solution to their clients. Through it, we can implement a customized PUT Strategy based on a broker’s approved stock list. Naturally, all client assets will continue to be held at the broker-dealer.
To help RIAs provide their existing client base with unique solutions, we work with them in a sub-advisory capacity. This enables RIAs to provide an alternative for clients seeking income outside of the traditional avenues of fixed income, real estate investment trusts (REITs), and master limited partnerships, while maintaining full control of the client relationship.
High net worth individuals benefit from our strategies, as well, and receive direct access to the portfolio managers. Our first priority is to understand their risk tolerance, tax situation, liquidity needs, time horizon and cash flow requirements. This enables Two Fish to better achieve their investment goals.
who we are
We have a passion for creating value from the resources with which we are entrusted. Our investment mission is inspired by the Biblical accounts in Mark 6 and Matthew 14 of Jesus Christ feeding the multitudes with only two fish and five loaves.
Mike founded Two Fish Management in December 2007, and directs fundamental research and security selection for the firm. Prior to forming Two Fish, Mike served as the Director of Investment Research for KSM Capital Advisors. He started his career as a consultant with Tucker Alan focused on SEC accounting fraud investigations and damages valuations.
Mike received his B.S. in Finance and Accounting, magna cum laude from Indiana University’s Kelley School of Business. While at Indiana, Mike was a Collegiate Rugby All-American.
J.R. founded Two Fish Management in December 2007. His primary roles at Two Fish are managing the trade desk, reviewing securities from a technical perspective, and business development. Prior to forming Two Fish, J.R. worked as a business valuation analyst for Katz, Sapper & Miller in Indianapolis and was the financial manager at Odyssey Ventures in San Francisco.
He holds an undergraduate degree in economics from Princeton University and while in school, played football for four years. J.R. is married with three children.