Orion and Riskalyze

One of the things I’ve come to understand as we’ve built our business is that every time you choose a technology vendor, you’re doing a lot more than choosing a technology vendor. You’re making an investment. You’re buying in to that technology company’s future, its roadmap, its vision. You have no choice. Once you standardize on a platform, it becomes part of your business and affects your business. So where that platform thinks it needs to go is going to have an impact on where you end up going.

We’ve made some mistakes in selecting vendors for this or that feature, but two big decisions we got really right early in the game are Orion and Riskalyze. These are two companies that have helped us get to where we are.

In the case of Orion, they were already established as one of the best companies in the industry when we signed on with them to supply portfolio accounting and performance reporting software to us. This year we began utilizing their Eclipse trading tool as the complexity of working across three brokerage custodians (TD, Schwab and Fidelity) has necessitated a more streamlined approach. We’re still using iRebal for TD custody accounts – it’s still one of the best tools ever built for the industry – but bringing Orion’s Eclipse into the arsenal means that we’re going to get faster, more efficient and be able to handle simultaneous transactions across the board going forward. Orion has been an amazing partner for us, and we’re currently exploring their compliance tools as well.

Aaron and I at last year’s Wealth Management Awards. I didn’t win anything, Aaron wins everything lol 

In the case of Riskalyze, we were one of the firm’s earliest clients back in 2012. I met Aaron Klein while he was still in beta. Now he’s got enterprise deals at every major RIA firm, independent broker-dealer firm and platform in the industry. And despite his success in the large firm channel, Riskalyze is still supporting smaller, emerging RIAs as though they’re the most important clients in the world. It’s quite remarkable how the company has been able to grow so large while still paying attention to every customer up and down the scale. Riskalyze has been adding features and entering new verticals at a breakneck pace for almost a decade now. If you’re an advisor thinking about a new feature you’d like to incorporate into your practice, there’s a good chance Aaron’s people have already built it, or are in the process.

By choosing Orion and Riskalyze for critical parts of our technology stack, we’ve become investors in their success. It’s a partnership. We need them to succeed given how much we’ve built around the services and technologies they’ve created. I’m happy to report that for both companies, the outlook as never been brighter.

This week, Orion announced a merger with Pennsylvania-based Brinker Capital, a $25 billion turnkey asset management program (TAMP) firm that caters to over 5,000 financial advisors. Orion’s combining Brinker’s assets and strategies with its own TAMP to build a $40 billion powerhouse. We don’t use TAMPs at Ritholtz Wealth given our focus on proprietary strategies and select third-party managers, but seeing Orion get bigger and stronger is an affirmation that we’ll have a bright future together. I’ve learned a lot from watching founder and CEO Eric Clarke make all the right moves over the last seven years. He inspires me all the time. As for Brinker, I began doing business with them in my brokerage days back in 2001 when I needed an asset management solution for clients that went beyond what my firm was able to provide. They’re wonderful people who care deeply about the advisors who partner with them and the end-clients they serve. It’s going to be a highly successful union.

Also this week – as a member of the Riskalyze board of advisors and shareholder, I got the annual letter from Aaron Klein and it was packed with interesting stuff about what’s happened over the last year. Economic and market uncertainty from the pandemic has been a challenge industrywide, but also an undeniable reminder of how valuable his service has become for advisors and their clients:

While our own sales growth definitely slowed during this time, I’m proud to say that not a single business day has passed without at least one advisor joining Riskalyze — even Black Thursday, the worst day in market history since the Great Depression. On the flip side, we were stunned to see our cancellation rate drop like a rock during this crisis. We’ve never really had the opportunity to stress test our business with a market crash, and it would have been fair to assume that a crisis impacting customer revenue would be likely to impact ours as well. Instead, we’ve seen our cancellation rates running 15-20% below budget, putting us ahead of the curve on our goals to increase advisor retention. We’re grateful to be such an important part of the tech stack of the advisors we love to serve, and we’re excited to have built such a resilient business.

Whether you’re serving high net worth retirees or young people who are in the early stages of accumulation, the ability to quantify the risks they’re taking become indispensable in times like these. Being able to show clients how their portfolio risk matches up with their own personal risk tolerance is a critical weapon in the battle to keep them from making irreversible mistakes in the heat of the moment. Riskalyze’s other weapons, from trading technology to Retirement Roadmap to Autopilot will also have a big role to play as advisory firms gain increased comfort with moving analog processes over to the digital realm.

I’m proud of both companies and their employees for helping firms like ours navigate the current environment and continuing to help us improve our own client experience. Choosing Orion and Riskalyze to help power the firm are two of the best investments I’ve ever made.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. click here commented on Sep 14

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  2. 안전놀이터 commented on Oct 19

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  3. DevOps company in Dallas commented on Nov 05

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  4. http://www.bmo.so/ commented on Nov 26

    … [Trackback]

    […] Here you can find 96340 additional Information to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  5. tangerine bank online commented on Nov 29

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  6. Rescue Tow commented on Dec 12

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  7. cheap wigs commented on Dec 17

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  8. fake watches commented on Dec 21

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  9. Beko Cooker hoods manuals commented on Jan 19

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]

  10. paito warna sgp commented on Jan 30

    … [Trackback]

    […] Here you can find 73962 additional Info to that Topic: thereformedbroker.com/2020/06/30/orion-and-riskalyze/ […]