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ZEGA Investments
ZEGA Investments, founded by Jay Pestrichelli in 2011, builds options-based hedging strategies for concentrated stock positions.
ZEGA Investments
ZEGA Investments was founded in 2011 in Boca Raton, Florida, by Jay Pestrichelli, who saw a specific problem among private wealth advisors: clients with large, concentrated equity positions lacked acceptable hedging strategies. The firm publishes the book "Buy and Hedge" and builds its identity around equity risk management, not directionally-bullish marketing. ZEGA's primary product suite uses option collar strategies paired with managed-futures overlays. The firm manages separate accounts, mutual funds, and uncorrelated alternatives that blend equity hedging, tactical allocations, and cash-flow-generating credit sleeves. Public-facing strategies include the ZEGA Buy and Hedge Fund (ZAK), which hedges S&P 500 exposure with long put and short call structures, and the ZEGA Aggressive Growth Fund (ZEXIX), a hedged equity approach. The firm also operates private credit vehicles targeting real estate and specialty finance, though specific lending positions are not publicly detailed. The footprint is US-centric, designed for domestic RIAs and broker-dealer platforms. The firm operates from its single headquarters in Boca Raton. Team size and total deployment figures are not publicly disclosed. In July 2024, ZEGA announced it had partnered with a national RIA platform to make its hedging strategies available to a network of over 1,000 advisors, expanding its distribution beyond its direct client base. Jay Pestrichelli remains the CEO and lead portfolio strategist, regularly publishing market commentary on hedging mechanics and volatility cycles. ZEGA's structural differentiator is its product-market fit inside the buffer-ETF and hedging-education channel. It does not compete as a generalist asset gatherer. Instead, it trains financial advisors to use options-based hedging as a core allocation tool, creating an educational moat—via books, webinars, and its Trader's Blog—that ties distribution to a specific risk-management philosophy, not a performance-chasing narrative.
General information
Firm type
Asset Manager
Year founded
2011
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Boca Raton
Corporate office
Boca Raton, FL, United States
Principals
Jay Pestrichelli
Chief Executive Officer
Sector focus
Frequently asked questions
Who runs investment decisions at ZEGA Investments?
Jay Pestrichelli, the firm's founder, serves as CEO and lead strategist. He co-authored "Buy and Hedge: The 5 Iron Rules for Investing Over the Long Term" and makes the core strategy decisions alongside ZEGA's trading desk. The firm's public materials consistently frame Pestrichelli as the architect of its options-based mandates.
How does ZEGA source its investment ideas?
ZEGA's strategies are quantitatively driven, sourced from systematic options pricing models rather than traditional security selection. The firm monitors volatility surfaces, risk premia, and macro trends to calibrate its collar and overlay structures. Private credit and real estate allocations are sourced through internal credit committees and developer relationships.
Does ZEGA operate as a single family office, an asset manager, or something else?
ZEGA is an asset manager, not a family office. It manages mutual funds, separate accounts, and private funds for external clients—primarily registered investment advisors (RIAs), broker-dealer platforms, and individual accredited investors. There is no evidence of a single-family capital anchor.
Does ZEGA participate in fund commitments or only direct hedging mandates?
ZEGA manages both liquid hedging strategies (mutual funds, SMAs) and private funds focused on credit and real estate. In liquid strategies, it directly executes option positions. In private markets, its funds make direct and co-investment style commitments in real estate loans and specialty finance assets.
Which asset classes does ZEGA explicitly avoid?
The firm rarely engages in venture capital, early-stage private equity, or directional long-only stock picking. Its mandate is intentionally risk-defined: the firm builds portfolios designed to participate in equity upside with hedged downside, avoiding strategies that require unconstrained directional conviction.
How is ZEGA's real estate and credit business separated from its hedging funds?
ZEGA runs its private real estate and specialty credit exposure through distinct private fund vehicles—separate from the '40 Act mutual funds and SMAs that execute its public-market hedging strategies. The private portfolios target income-producing loans and property assets, and they do not commingle with hedged-equity investor capital.
What is ZEGA's known posture on co-investments alongside external managers?
ZEGA does not operate a co-investment platform akin to large private equity allocators. Its private credit and real estate funds typically function as direct lenders or deal sponsors. The firm has not disclosed a formal co-investment program where outside managers syndicate minority positions into ZEGA's originated transactions.
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