Eric Metz discusses the acquisition and the future of option overlays
- BlackRock has acquired SpiderRock Advisors, a business specializing in customized option overlays
- Eric Metz, the head of SpiderRock, discusses the growing demand for option overlay strategies
- Metz believes option overlays could expand to include mass-affluent households
- BlackRock’s motivation for the acquisition was to enhance their separately managed account offering
- SpiderRock specializes in building after-tax portfolios using listed options
- Options are unique in their ability to reshape portfolios’ risk and reward without incurring a tax bill
- SpiderRock works with financial advisors to deliver their solutions to clients
- The acquisition by BlackRock opens up tremendous opportunities for growth and collaboration
- SpiderRock will remain a vertically integrated business unit within BlackRock’s U.S. wealth advisory business unit
- The total addressable growth potential for SpiderRock is much larger than its current footprint
Eric Metz, the head of SpiderRock Advisors, recently spoke about the acquisition of his business by BlackRock and the growing demand for option overlay strategies. Option overlays, which use options contracts to enhance returns and mitigate risk, have traditionally been used by large investors and institutions. However, Metz believes that option overlays could expand to include mass-affluent households. BlackRock’s acquisition of SpiderRock was motivated by the desire to enhance their separately managed account offering. SpiderRock specializes in building after-tax portfolios using listed options, which are unique in their ability to reshape portfolios’ risk and reward without incurring a tax bill. The acquisition by BlackRock opens up tremendous opportunities for growth and collaboration, and SpiderRock will remain a vertically integrated business unit within BlackRock’s U.S. wealth advisory business unit. The total addressable growth potential for SpiderRock is much larger than its current footprint.
Factuality Level: 3
Factuality Justification: The article provides detailed information about Eric Metz, SpiderRock Advisors, and their recent acquisition by BlackRock. However, the article lacks objectivity and contains a significant amount of promotional content and personal anecdotes, which may skew the presentation of facts. The article also includes unnecessary background information and details that are tangential to the main topic, reducing its overall factuality level.
Noise Level: 3
Noise Justification: The article provides a detailed and informative interview with Eric Metz, the head of SpiderRock Advisors, discussing the recent acquisition by BlackRock and the growth potential of the business. It offers insights into the industry, the company’s specialization, and the reasons behind the acquisition. However, the article lacks critical analysis, does not explore potential risks or challenges, and mainly focuses on positive aspects of the acquisition and the company’s operations.
Financial Relevance: Yes
Financial Markets Impacted: The acquisition of SpiderRock Advisors by BlackRock may impact the asset management industry and the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article discusses the acquisition of SpiderRock Advisors by BlackRock, which has implications for the asset management industry and financial markets. However, there is no mention of any extreme events.
Public Companies: BlackRock (BLK), Envestnet (ENV), Orion (Private), AssetMark (Private)
Private Companies: SpiderRock Advisors,RiverNorth Capital Management,Chicago Trading Company,Ronin Capital
Key People: Eric Metz (Chief Investment Officer and Head of SpiderRock Advisors)
Reported publicly:
www.barrons.com 
