As the use of alternative investments, particularly derivatives, increase in portfolios, Parametric Portfolio Associates has seized an opportunity and merged with Managed Risk Advisors to expand its use of options and other derivatives in client portfolios. Westport, Conn.-based Managed Risk Advisors will merge into an affiliate of Parametric, called Parametric Risk Advisors. The deal is expected to close in the next six weeks and is subject to standard client consent and regulatory requirements. Parametric, a Seattle-based subsidiary of Eaton Vance Corp., has $20 billion in assets under management. “This is an important initiative for Parametric that will extend our offerings for the wealth and management market,” said Brian Langstraat, chief executive officer. “Having an embedded derivatives capability creates new opportunities for us to add value and to respond to client needs,” he said. Parametric Risk Advisors will operate under the direction of its senior executives in Westport, Conn. It will offer managed covered call writing programs to enhance the risk and return of both concentrated stock positions and diversified equity portfolios. Additionally, the new affiliate will advise on the structuring of various hedging and monetizing strategies used in the management of concentrated stock positions.
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