System 2 Advisors, L.P. (Summit)


System 2 Advisors, L.P. is a large advisory firm based in Summit. It manages $265.6 million of regulatory assets for 6 client accounts. It has been registered with the SEC as an adviser since 2012 and has operated in the jurisdictions of New Jersey and New York.

System 2 Advisors provides portfolio management for individuals and small businesses, portfolio management for investment companies, portfolio management for pooled investment vehicles, and portfolio management for businesses and institutional clients. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

System 2 Advisors: assets under management

The assets under management (AUM) of System 2 Advisors, L.P. is $265.6 million. The firm's AUM has grown by 469% since the beginning of its operation, and $178 million of the total AUM is attributable to clients outside of the United States.

The firm manages $165.6 million in discretionary accounts and $100 million in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $33.12 million each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $100 million.

Investments

The firm invests in derivatives the most. They account for 85% of the total AUM. The second-largest asset type is exchange traded securities, which make up 15% of the firm’s portfolio.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay System 2 Advisors, L.P. for their services and products based on a percentage of assets under management and performance-based fees. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients System 2 Advisors serves?

The firm provides services to investment companies and pooled investment vehicles. The largest group of clients of System 2 Advisors is pooled investment vehicles with 3 clients and $78 million of assets under management. Among the 7 most similar advisory firms, System 2 Advisors has the highest percentage of pooled investment vehicles out of all clients.

The amount of regulatory assets under management is $117 million for 4 clients. 67% of the firm’s clients are foreign persons or businesses.

System 2 Advisors also advises several private funds. Namely, one hedge fund. The minimum investment commitment required of non-related persons is $100,000 for each fund.

Careers at System 2 Advisors, L.P.

The company employs 6 people that are either part- or full-time employees. 33 percent of the employees work as investment advisers or researchers. No employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Robert Carlisle Jones has served as the Chief Investment Officer since 1 Apr 2012. Peter Frame Marquardt joined the executive team most recently as the Chief Compliance Officer.

Direct owners and executive officers


Name Entity Date acquired Ownership Employer ID
Anupam Ghose Chief executive officer & chief compliance officer 1 Apr 2012 25% - 50% 2571306
David Eugene Byrket Managing director & senior portfolio manager 1 Apr 2012 Other 2779372
Robert Carlisle Jones Chief investment officer 1 Apr 2012 25% - 50% 726793
Llc Ghose Investments General partner 1 Apr 2012 Other 90-0831212
L.P. Roc Capital Management Limited partner 1 May 2012 Other 152873
Jonathan Antonio Marmolejos Consultant 1 Jan 2014 Other 6624776
Ana Isabel Galliano Chief compliance officer 1 Jan 2018 Other 6932225
Peter Frame Marquardt Chief compliance officer 1 Nov 2018 Other 1247354

Indirect Owners

The SEC currently registers 5 indirect owners.

Name Entity Date acquired Ownership Employer ID
L.L.C. Roc Capital Management General partner of roc capital management, l.p 1 Jul 2008 Other 27-0691930
Arvind Raghunathan Managing member of roc capital management, l.l.c. 1 Jul 2008 75% - 100% 2287036
Arvind Raghunathan Member of asr investments ii, llc 1 May 2009 75% - 100% 2287036
Llc Asr Investments Ii Limited partner of roc capital management, l.p. 1 Jun 2009 75% - 100% 27-1525341
Anupam Ghose Manager of ghose investments, llc 1 May 2010 75% - 100% 2571306

Based in Summit

The principal office where System 2 Advisors, L.P. performs its advisory services is located at 47 Maple Street, Summit, NJ 07901, which is also the mailing address of the firm. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 908-608-8800. The normal business hours are 9:00 a.m.-5:00 p.m. on Monday - Friday.