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Warrington Asset Management wins Pinnacle Award's 5-year best options strategy

Wednesday, July 12, 2017
Opalesque Industry Update - Warrington Asset Management's Strategic Program won the 2017 Pinnacle Award's 5-Year Best Options Strategy. For six years, the Pinnacle Awards have recognized excellence in trading in the managed futures space. Warrington has been nominated four times, and brought home the coveted award this year. Headed by founder and principal trader Scott Kimple, Warrington Asset Management's programs utilize a fundamental, discretionary trading strategy using options on the S&P 500 index. The firm, founded by Kimple in 1997, has used the same underlying methodology for all programs since its launch.

"We're honored to receive the Pinnacle Award," said Kimple, who accepted the award at the June ceremony in Chicago. "It's good to be recognized by the industry, as well as be judged positively by our respected peers."

Today with more than $110 million under management, Dallas-based Warrington has its Strategic and Tactical programs that can be accessed through funds and separately managed accounts. The firm utilizes both directional and non-directional option strategies, focusing on the stock index futures markets. Directional strategies will utilize options and combinations of options to position for specific market moves, while nondirectional strategies attempt to capture premiums on the sale of uncovered options.

The Warrington Strategic Program, which won the Pinnacle Award, had a 4.59% return in 2016, and has a 10.09% compounded return since being launched in January 1997. Warrington was exclusively offered through Morgan Stanley (and its predecessors) for 18 years until becoming an independent firm in 2015. Kimple, a third-generation Texan, has traded client assets for 27 years.

The Pinnacle awards, sponsored by the CME Group and BarclayHedge, determine winners based on more than 100 allocator interviews and surveys on best criteria they use to select managers. The top five of these performance metrics were: correlations to relevant indexes, length of performance history, minimal drawdown, net returns, and risk-adjusted returns. Judged by these criteria and more, the top three programs in each of the 14 categories were nominated. The program with the top score is the winner. Warrington beat out Esulep Management and Global Sigma Group in the finals for Best 5-year Options Strategy.

Founder, Principal and Portfolio Manager of Warrington Scott C. Kimple began trading stock and bond positions for his personal account in January 1984, and commodity futures and options in July 1989. In April 1991, Mr. Kimple formally began his career as a trading assistant to Stan Finney, a highly successful trader at Shearson Lehman (a predecessor firm to Morgan Stanley Wealth Management), gaining experience in multiple futures and options markets. While working for Mr. Finney, Mr. Kimple researched, tested and honed his options-based trading strategy that he has utilized at Warrington since 1997. Mr. Kimple received a BBA in finance from Southern Methodist University and a MBA, with emphasis in finance and derivative securities, from SMU 's Cox School of Business. Mr. Kimple holds the Series 3, 7 and 63 licenses.

Warrington is a CTA with a 20-year track record utilizing trading strategies focused on the S&P 500 Index options on futures. Warrington ended its long-term internal affiliation with Morgan Stanley in January 2015. Warrington is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association.

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