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Alternative Market Briefing

Baltimore-based boutique wealth management firm adopts structured note strategies

Thursday, July 23, 2015

Komfie Manalo, Opalesque Asia:

Cornerstone Advisory have started using structured note strategies that allowed them to create scenarios for growth, said Tom Biddison, principal at the Baltimore-based boutique wealth management firm, which last year launched a private placement, The Outcome Driven Fund, around its specialty in creating institutional structured note strategies.

Speaking at the recent Opalesque Roundtable in Baltimore, Biddison said the firm initially invested its own money to see the end results of the structured note strategies. But when Cornerstone started seeing success, they gradually implemented the strategies into their client portfolios.

A structured note is a debt obligation that also contains an embedded derivative component with characteristics that adjust the security's risk/return profile. The return performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it.

Biddison explained that structured note strategies started as Cornerstone has developed good relationship with ten major investment banks over the years. This relationship allowed them to create scenarios around whatever financial experience the company is looking to track.

Biddison said, "......................

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