“Risk is not a story; it's not a relationship; it's not a feeling. Risk is a number: it's the probability of loss weighted by the expected degree of loss.”
- Benjamin D. Summers
A PRIVATE FINANCIAL INSTITUTION
“[Most] investors may be quite willing to take the risk of being wrong in the company of others, while being much more reluctant to take the risk of being right alone.”
- John Maynard Keynes
OCIO SERVICES
We maintain selective OCIO relationships with:
- Family Offices managing $100 million+ in investable assets
- University and Foundation Endowments
- Institutional Allocators that value quantitatively rigorous portfolio management
Our OCIO relationships are built upon a structured, quantitative methodology:
- Multidimensional Risk Assessment: Each investment opportunity undergoes comprehensive analysis using our proprietary framework that captures the complete return distribution rather than simplified statistical measures.
- Portfolio Construction via Hilbert Space Methods: We apply advanced functional analysis techniques to identify structural vulnerabilities and persistent signals across asset classes that remain invisible to conventional approaches.
- Dynamic Allocation Optimization: Our methodology adapts to evolving market conditions through Bayesian signal integration that weights different analytical techniques based on their demonstrated predictive power.
- Systematic Performance Verification: Client portfolios undergo continuous evaluation using the Summers Total Risk-Adjusted Performance Measure to ensure alignment with institutional objectives across all market regimes.
- Transparent Governance Framework: We provide institutional partners with quantitative performance attribution and comprehensive risk decomposition, establishing clear accountability through mathematical rigor rather than narrative explanations.
Third-Party Risk Analytics
We provide the asset management and broker-dealer communities comprehensive, quantitative risk analysis at both the individual investment and portfolio levels. By applying four-moment statistical analysis to performance data encompassing a minimum of one complete market cycle, we are able to meaningfully measure the risk (market, idiosyncratic, and tail), return, and liquidity characteristics of any investment or portfolio.
We provide the asset management and broker-dealer communities comprehensive, quantitative risk analysis at both the individual investment and portfolio levels. By applying four-moment statistical analysis to performance data encompassing a minimum of one complete market cycle, we are able to meaningfully measure the risk (market, idiosyncratic, and tail), return, and liquidity characteristics of any investment or portfolio.
Summers MEASURE & INVESTMENT CHARACTERISTICS MATRIX
Rigorous quantitative analysis is unequivocally the only responsible method of determining asset quality and informing portfolio construction. Of the risk-adjusted performance measures, the Summers Total Risk-Adjusted Performance Measure is the only one that captures all four statistical moments while providing a user-friendly output as a percentage relative to the market. The Summers Investment Characteristics Matrix paints an accurate, comprehensive picture of the risk, return, and liquidity characteristics of any asset or portfolio regardless of asset class—from equities to real property.
For sponsors managing newer strategies, we apply backward-looking analysis that rigorously accounts for every measurable variable contributing to the performance characteristics of rules-based strategies across complete market cycles. This methodology excludes cherry picking and data fitting by design.
When asset managers complete our quantitative risk analysis, we may provide appropriate visibility to qualified investors and financial institutions within our network who have expressed interest in strategies demonstrating specific risk-return characteristics.
For sponsors managing newer strategies, we apply backward-looking analysis that rigorously accounts for every measurable variable contributing to the performance characteristics of rules-based strategies across complete market cycles. This methodology excludes cherry picking and data fitting by design.
When asset managers complete our quantitative risk analysis, we may provide appropriate visibility to qualified investors and financial institutions within our network who have expressed interest in strategies demonstrating specific risk-return characteristics.
Portfolio Management & Private Structured Product Engineering
We implement OCIO relationships for institutional clients including endowments, foundations, and family offices with a $100 million or more in investable assets. Our approach delivers comprehensive portfolio solutions that achieve performance and liquidity objectives unattainable through conventional investment methodologies.
Our portfolio construction process applies the mathematical framework described earlier—capturing the complete return distribution rather than simplified statistical measures. Unlike traditional approaches that rely on static methodologies regardless of market environment, our Bayesian signal integration adaptively weights different analytical techniques based on current market conditions.
METHODOLOGY ADVANTAGES
METHODOLOGY ADVANTAGES
Complete Distribution Analysis: Risk assessment capturing all statistical moments rather than simplified variance approximations
Regime-Adaptive Signal Processing: Mathematical framework that automatically adjusts to changing market conditions without discretionary intervention
Structural Vulnerability Detection: Identification of risks that remain invisible to traditional approaches, particularly during transition periods
Path-Dependency Recognition: Capture of temporal structures and sequential patterns missed by static models
Cross-Asset Class Signal Integration: Unified mathematical framework applicable across all liquid and alternative asset categories
Measurable Tail Risk Protection: Quantifiable downside protection derived from the comprehensive modeling of probability distributions
PRIVATE STRUCTURED PRODUCTS
PRIVATE STRUCTURED PRODUCTS
Open-End, Institutional-Grade, Risk-Engineered, Private Fixed Income & Growth Structures
GP Stakes Structures & Positions
Best-In-Class Actively-Managed Underlying Strategies
24 to 120 Month Lock-Up Period
High Omega Ratio & No Inter-Year Drawdown
(as measured since January 2007 or earlier)
Quarterly Reporting
Annual Audits
Margin Facilities
GP Stakes Solutions
Our GP stakes solutions generate unparalleled returns with minimal downside exposure for GP stakes fund LPs by providing best-in-class alternative asset managers a financially engineered structure, rigorous operational guardrails, and access to institutional capital. GP stakes funds acquire equity interests in the discrete structure created for each portfolio asset manager and generate yield via the funds' pro rata ownership of portfolio asset managers' management and performance fees.
We design our GP stakes funds for financial institutions and RIAs that are typically responsible for driving AUM into portfolio asset managers, either directly or through a dedicated fund of funds. This puts GP stakes fund LPs in control of the performance of their positions.
Transdisciplinary Academic Programs in Econophysics, Financial Mathematics, and Financial Engineering through Adagio Institute
“How much you truly 'believe' in something can be manifested only through what you are willing to risk for it.”
- Nassim N. Taleb
MANAGING PRINCIPALS
Benjamin D. Summers
Managing Director & Founder
CUSTOM JAVASCRIPT / HTML
Karl R. Moore
Managing Partner - Private Equity
Over Karl's 15+ year career in finance, he has worked across the spectrum of private equity and venture capital markets. He has founded two companies and held senior roles in the launch of two more. In each of these positions, he has proved a top strategic development mind leading and executing M&A and re-capitalization transactions, negotiating deal terms, and getting products and companies to market successfully.
Before focusing solely on private markets, Karl began his career at UBS, eventually focusing on hedge fund manager due diligence at Summit Private Investments. At Summit he optimized the risk-adjusted performance of roughly $500 million in AUM across 40+ managers with strategies ranging from small cap growth and value to distressed debt.
Karl received his law degree from Vanderbilt University and his Bachelor of Science in Business Administration, summa cum laude, from Mississippi College.
Todd A. Billings
Managing Partner - Real Estate
CUSTOM JAVASCRIPT / HTML
Todd is the founder of USDV Capital, a private equity firm that has purchased and originated over 9,000 residential and commercial mortgages. Todd launched his career on Wall Street as a financial analyst and trader working with municipal bonds, swap strategies, and equities as a NASDAQ market maker with Merrill Lynch, Paine Webber (UBS), Hill Thompson Magid, and Bank of America Private Bank (U.S. Trust).
Todd is a pioneer in the investment industry being first to market in the non-performing loan business after the 2008 market crash. He followed that up by leveraging his Wall Street experience to finance fix and flip, new construction, bridge and non-agency debt service coverage ratio (“DSCR”) loans.
Todd attended John Hopkins University and received his Bachelor of Science in Economics from Stanford University. He has been married for 21 years and is the proud father of five children.
Dr. Kurtay Ogunc
Director - Academic Affairs
CUSTOM JAVASCRIPT / HTML
Kurtay is responsible for academic initiatives under Adagio Institute. He is also the Director of Undergraduate Studies & Research, Director of the Asset Management Academy, and Director of the Quantitative Finance Club in the department of finance at LSU.
In addition to his academic career, Kurtay has served in the public and private sectors over the last three decades, most recently as the Senior Investment Officer for Risk Management and Asset Allocation in the Mayor’s Office for Pensions and Investments at the New York City Retirement System. Additionally, Kurtay served as the first investment manager for the LSU endowment.
Kurtay received his PhD in Decision Sciences (Asset Management, Stochastic Processes and Econometrics) and Master of Applied Statistics (Binary Choice Models and Bayesian Theory) from LSU and his MBA in Finance from Western Michigan University.
Daniel Berger
Director - Capital Markets
CUSTOM JAVASCRIPT / HTML
Daniel is responsible for market research and communications in support of Adagio’s service offerings, product development and distribution. Daniel also serves as a Managing Partner of Daltok Capital Management. Before joining Adagio, Daniel served as Chief Revenue Officer at Oren Klaff’s investment firm Intersection Capital with a focus on expanding their equity capital markets practice.
Daniel also has substantial experience in the international real estate development space driving exits from $290 million per year to over $900 million. During that time, he trained more than 3,000 sales and marketing professionals.
Daniel graduated from Europa-Universität Flensburg with a Bachelor of Business Administration (International Management, Media Management, Marketing) and Master of Organizational Management. He is currently a member of the Forbes Business Development Council.
“I want a guy who knows enough math so that he can use those tools effectively but has a curiosity about how things work and enough imagination and tenacity to dope it out.”
- Jim Simons
CAREER OPPORTUNITIES
Key Accounts Manager
Level: Senior Manager
Category: Financial Services
Location: TBD
We are seeking a highly motivated Key Accounts Executive with a proven track record of generating new relationships with Independent Broker-Dealers that result in selling agreements nationwide.
For serious consideration, candidates must have experience successfully obtaining selling agreements for sponsors of alternative investment products.
Responsibilities:
- Establish relationships with independent broker-dealers to distribute Adagio's investment products.
- Identify and capture business development opportunities for Adagio’s products.
- Educate broker-dealer firms on quantitative risk analysis and synthetic positions and present alternative investment product offerings.
- Develop and execute a strategic plan to obtain selling agreements with due diligence officers of broker dealers.
-
Analyze competitive data and position our products to win selling agreements.
- Establish relationships with independent broker-dealers to distribute Adagio's investment products.
- Identify and capture business development opportunities for Adagio’s products.
- Educate broker-dealer firms on quantitative risk analysis and synthetic positions and present alternative investment product offerings.
- Develop and execute a strategic plan to obtain selling agreements with due diligence officers of broker dealers.
-
Analyze competitive data and position our products to win selling agreements.
Qualifications:
- 10+ years financial product wholesale industry experience in the family office space
- Relationships with broker-dealers and other relevant financial investment entities
- Proven strategic business development, negotiating and managerial experience
-
Highly refined presentation and public speaking abilities
-
Thorough understanding of quantitative risk analysis, structured products and synthetic positions
- Results oriented and creative problem solving ability
- FINRA Series 7 & 66 or Series 65 License
- B.S. in Math, Physics, or Computer Science
Wholesaler
Level: Associate
Category: Financial Services
Location: TBD
We are seeking an experienced alternative financial products sales professional to be responsible for the distribution of our private securities offerings through the development of Family Office, Registered Investment Adviser ("RIA"), and Independent Broker-Dealer channels. Investment banking, private equity or hedge fund experience preferred.
Responsibilities:
- Attract, retain and support Family Offices, RIAs, and Independent Broker-Dealers as distribution channels for Adagio's private structured products.
- Liaise with distribution channels to guide their understanding of current risk, return & liquidity appetites.
- Educate representatives on quantitative risk analysis and synthetic positions.
- Adhere to communications best practice and disclosure requirements.
- Attract, retain and support Family Offices, RIAs, and Independent Broker-Dealers as distribution channels for Adagio's private structured products.
- Liaise with distribution channels to guide their understanding of current risk, return & liquidity appetites.
- Educate representatives on quantitative risk analysis and synthetic positions.
- Adhere to communications best practice and disclosure requirements.
Required:
- Established network of Family Offices and RIAs that trade/recommend alternatives
- Understanding of quantitative risk analysis, structured products and synthetic positions
- Excellent verbal and written communication skills
-
Fortitude to alter cultural inertia with merit
-
Creative problem solving ability
- Results oriented
- FINRA Series 7 & 66 or Series 65 License
- B.S. in Math, Physics, or Computer Science
- Established network of Family Offices and RIAs that trade/recommend alternatives
- Understanding of quantitative risk analysis, structured products and synthetic positions
- Excellent verbal and written communication skills
-
Fortitude to alter cultural inertia with merit
-
Creative problem solving ability
- Results oriented
- FINRA Series 7 & 66 or Series 65 License
- B.S. in Math, Physics, or Computer Science (preferred)
Financial Advisor Associate
- No existing book of business required
- No cold calling required
- Low-ticket front-end educational product (segments market participants and provides comprehensive education-based sales message)
-
Risk-adjusted performance measure tools and services
-
Superior risk-adjusted performance (as measured since January 2007) via institutional-grade private structured products
- Low-minimum access to exclusive risk-adjusted performance for retail investors
- No existing book of business required
- No cold calling required
- Low-ticket front-end educational product (segments market participants and provides comprehensive education-based sales message)
-
Risk-adjusted performance measure tools and services
-
Superior risk-adjusted performance (as measured since January 2007) via institutional-grade private structured products
- Low-minimum access to exclusive risk-adjusted performance for retail investors
We are seeking a highly motivated Financial Advisor to generate traffic for our self-liquidating marketing and sales funnel and follow-up with individuals who fall out of the funnel to close the appropriate sales.
Commissions are paid at every step of the funnel, in addition to compensation for the sale of our financial products.
You’ll have access to powerful sales tools and a large resource network so you can focus on activities that get immediate results. A career as a Financial Advisor with Adagio gives you the pride and satisfaction of helping others to understand and analyze their financial situation and needs better than any other firm in the market.
Qualifications:
- Highly refined presentation and public speaking abilities
- Thorough understanding of quantitative risk analysis, structured products and synthetic positions (education provided)
- Results oriented and creative problem solving ability
-
FINRA Series 65 License
- B.S. in Math, Physics, or Computer Science
- Highly refined presentation and public speaking abilities
- Thorough understanding of quantitative risk analysis, structured products and synthetic positions
- Results oriented and creative problem solving ability
-
FINRA Series 7 & 66 or Series 65 License (preferred)
- B.S. in Math, Physics, or Computer Science (preferred)
EQUAL OPPORTUNITY EMPLOYER DISCLOSURE: It is the policy of Adagio, LLC to ensure equal employment opportunity without discrimination or harassment on the basis of race, color, religion, creed, age, sex, gender, gender identity or expression, sexual orientation, national origin, citizenship, disability, marital and civil partnership/union status, pregnancy (including unlawful discrimination on the basis of a legally protected pregnancy/maternity leave), veteran status, genetic information or any other legally protected characteristic.
“An investment in knowledge pays the best interest."
- Benjamin Franklin
INVESTOR RELATIONS
We are always seeking creative solutions to effectively meet the demands of important, challenging problems. Two of the most important challenges we address are: 1) measuring the risk-adjusted performance characteristics of assets and asset managers, and 2) filling holes in the capital markets with assets possessing better risk-adjusted performance than what is otherwise available. Adagio's investors range from high net worth individuals to other financial firms with a diverse array of objectives. We pride ourselves on our commitment to open communication with investors and a consistent and high level of transparency regarding our allocations. By fostering an ongoing dialogue and applying our unmatched risk engineering expertise, we are able to structure appropriate vehicles to meet these goals.
CUSTOM JAVASCRIPT / HTML
PAPERS
PAPERS
CUSTOM JAVASCRIPT / HTML
An Intuitive True Total Risk-Adjusted Performance Measure and Characteristics Matrix
January 2023
Keating and Shadwick’s Omega ratio captures all four statistical moments of risk but has practical limitations with respect to portfolio optimization. Kapsos et al. simplified the Omega ratio into an expression with better practical application, but its focus as a portfolio optimization tool represents a trade-off with respect to absolute risk-adjusted performance measurement. First, we've transformed the Kapsos form of the Omega ratio in an analogous manner to what Modigliani did with the Sharpe ratio to create an intuitive percentage output scaled against the market. Second, we’ve deconstructed the Kapsos form of Omega to create a 3 x 1 matrix that measures and intuitively communicates the three fundamental characteristics that define an investment: risk, return, and liquidity.
Be a Better Fiduciary: Private Structured Products & Quantitative Risk Analytics for Financial Advisors
February 2018
Most financial advisors adhere to a very traditional asset allocation model built entirely upon public securities. Outside of the fact that a set of relatively vague, qualitative criteria govern the literal value of their clients’ life work, the substance upon which those models are predicated is a set of assets completely dependent upon schizophrenic secondary markets...
Investment Banking for Private Real Estate Operators
June 2017
Investment banks are intermediaries that, amongst many other functions, help typically large companies raise capital by advising on and underwriting new securities issues. To prepare for a new issue of securities, investment banks first advise their clients on considerations such as capital structure (how much debt vs. equity should be issued; what types of equity and debt should be issued, etc.), the strategic use of other financial instruments (such as warrants), and...
Investment Clubs: Gain the Exclusive Access of the Top 1%
May 2017
There is a little-known solution that can afford non-accredited investors the opportunity to participate in the exclusive securities offerings of hedge funds and invest like the top one percent: the investment club. An investment club is a business entity structured as either a general partnership or LLC in which all members (owners) are also managers who participate by vote in determining the investment decisions of the club; because all owners actively participate...
Constructing Alpha: An Introduction to the Fundamentals of Risk
April 2017
Every investor — from the guy who bets on physical currency by hiding it under his mattress to Ray Dalio — is concerned with risk. Somewhat surprisingly, despite the fact that the vast majority of people are risk averse, very few have any idea what risk actually means or how to measure it… this group includes many, if not most, financial professionals. Ironically, despite retail investors’ often stated aversion to risk, they tend to solely focus on the projected return...
From Wall Street to Main Street
July 2016
Most real estate investors face the nearly impossible task of competing for the few quality deals in their market against tens, if not hundreds, of deep-pocketed, well-connected and established investors already there. To survive, new and undercapitalized investors are forced to work many fruitless hours blindly mailing, calling, driving and knocking on random doors to find whatever scraps may be left over. After all this effort, in the rare instance a good deal is finally secured...
Introduction to Options in Real Estate
January 2015
One of most prolific and powerful tools of “creative” finance in real estate is the lease-option, but this tool represents only the proverbial tip of the iceberg when it comes to the most powerful breed of derivatives in the investing world, options. There are two basic types of options: the call option (or “call”) and the put option (or “put”). A call is what is utilized in the traditional lease-option; the put, on the other hand, is virtually unheard of in the world or real estate. An option...
Determining Equilibrium Value for Residential Real Estate
March 2013
One of the most pervasive challenges facing the residential real estate market is the determination of property values. As a result of TARP and other federal subsidies to institutional mortgage lenders, in addition to administrative incompetence, the foreclosure pipeline has been clogged. The expected glut of inventory resulting from the mortgage and financial crisis has yet to materialize, and correspondingly, prices have been lifted by artificially limited supply...
Deciphering Monetary Policy as a Means to Beat the Market
October 2012
Monetary policy and its effect on the markets can often seem as an impossibly complex, if not opaque dynamic. The market obviously responds, and most often in a seemingly positive manner, to the actions taken by the Federal Reserve System and statements by its chairman, Ben Bernanke… but how and why, and what are the less obvious effects of a centralized monetary system...
ADAGIO, LLC © 2023 All Rights Reserved
5100 Westheimer Rd, Ste 115 • Houston, Texas 77056
LEGAL DISCLAIMER: This site and its content are not an offer to sell, nor a solicitation of an offer to purchase any securities instrument or any interest in Adagio, LLC or its current or future affiliated entities ("Adagio Group").
This website and its contents including any blogs are a publication of Adagio Group. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the topics discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.
Adagio Group is not a law firm or a broker/dealer. Readers are advised that articles, blog posts and other content are provided solely for informational purposes. The opinions and analyses included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness, timeliness, or correctness. Neither we nor any information providers Adagio Group may have engaged shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or any delay or interruptions in, the transmission thereof to the users.
Information on this website and blog do not involve the rendering of personalized investment or legal advice. A professional advisor should be consulted before implementing any investment strategy or transactions. Content should not be construed as financial, legal or tax advice. Always consult an attorney, tax professional or financial adviser regarding your specific legal, tax or financial situation. Investment information is provided without consideration of your financial sophistication, experience, financial situation, investing time horizon, or risk tolerance. Readers are urged to consult with their own independent financial advisers with respect to any investment.
Hyperlinks on this website are provided as a convenience; Adagio Group disclaims any responsibility for information, services, or products found on websites linked hereto. Additionally, Adagio Group is not liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to.
Images or mentions of various organizations, services or investments do not represent an endorsement of or by Adagio Group or its affiliates.