Philosophy
A Foundation of Consistency. An Integrated, Forward-Looking Framework.
Gateway’s philosophy is rooted in the belief that while equities are a reliable source of long-term real returns, their inherent volatility must be actively managed. For nearly 50 years, we have applied a disciplined, quantitatively driven approach to create a sophisticated, single-source framework designed to optimize the balance between risk and return. Our expansive and customizable offerings highlight this framework, aiming to deliver customized, tax-aware solutions that meet the evolving needs of risk-conscious investors.
Equities Are Reliable, But Risk Must Be Managed
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 Can Help Manage Risk
Options-based strategies can enhance risk-adjusted returns by accessing the implied volatility risk premium, generating cash flow, and reducing equity risks.
Integrated Solutions Deliver Enhanced Customization
A single-source framework provides enhanced customization across all objectives by integrating the firm’s expertise. Three core capabilities—Hedged Equity, Long/Short Extension, and Single-Stock Hedging & Monetization—manage diverse needs and offer enhanced returns, potential tax benefits, and efficient diversification.
Active Judgement Can Improve Outcomes
Each market environment and investment objective is unique, requiring a dynamic tool kit and consistent approach. A disciplined, active investment process, backed by an experienced team, can add value and improve investor outcomes.
Why Options?
Alpha Generation
Options provide exposure to the volatility risk premium, serving as a potential source of reliable alpha.
Equity Participation
Options offer exposure to the equity risk premium, which has been a reliable source of long-term real returns.
Reduced Counterparty Risk
The use of exchange-traded options helps to avoid counterparty risk.
Liquidity and Transparency
Exchange-traded options benefit from a deep, competitive market with robust liquidity, which avoids illiquidity risks and keeps transaction costs low.
Portfolio Control
Features like cash-settlement and European-style expiration maintain control over the underlying portfolio and the options contracts.
Tax Efficiency
Options can facilitate loss harvesting and tax-efficient returns for taxable accounts.
Experience Matters Today, and Tomorrow
Gateway believes that consistency fostered by a team-oriented approach is one of the key components of long-term success. Our extensively experienced portfolio management and operational teams are in regular communication and coordination with clients – and prospects – throughout their journey with Gateway. This client-oriented approach offers collaboration in building, implementing, and monitoring solutions that can address the needs and goals of investors.
Past performance does not guarantee future results. Gateway does not provide tax advice. Tax treatment and rates can and do vary over time. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her investment and/or tax advisors.