Owners of RIAs face a triple-threat risk when it comes to steep market corrections. Their clients would likely lose money, the values of their own portfolios would probably fall, and their firms’ enterprise values would take a hit. In this episode of the Deep Dive, host Jay Hummel talks with Scot Billington about the risk and how to hedge it. Scot Billington is the co-founder of Covenant Capital Management, a registered commodity trading advisor, which he founded in 1999. Previously, Scot worked as a commercial hedge commodity broker and was a market maker on the floor of the Chicago Board Options Exchange. 00:00 Introduction 00:39 Scot's Background 1:02 Scot's Novel Outlook on Risk 7:03 What to Do About Risk 13:06 How Can Advisors Help Mitigate Risk? Scot graduated from Miami University in Ohio and resides in suburban Chicago. He can be reached at scotbillington@covenantcap.com. Here’s How a Market Drop Could Punish RIA Owners—and What to Do About It
The Deep Dive is a biweekly series focused on the wealth management business. Host Jay Hummel, co-founder of the Wealth Advisor Growth Network, interviews financial industry leaders to help advisors and firms deliver better outcomes for clients, while increasing revenue and the value of the their firms.
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