Howard ChanCEO & CIO, Kurv

The goal was to build a product I would personally invest in. I wanted consistent income, NAV stability, and long-term growth. We avoided flashy numbers at launch and focused instead on sustainability, discipline, and performance across different market environments.

NAV erosion destroys long-term value and investor trust. Income means very little if you slowly give back principal. From day one, our focus was protecting NAV so investors could rely on both income and capital preservation.

We don’t target a fixed yield. We distribute what the market gives us. When volatility is higher, we harvest more premium and save some in a reserve. Only after NAV is strong do we raise distributions responsibly.

If markets turn adverse and option premiums fall, we first use our income reserve. If conditions worsen and reserves are used up, we would lower distributions to protect NAV. Capital preservation always comes first.

Coming from PIMCO, I naturally think in terms of macro risk, discipline, and long-term outcomes. That background shaped how I manage uncertainty, balance risk, and stay patient during volatile market cycles.

Technology companies tend to have higher implied volatility, which allows us to harvest more option premium. At the same time, we focus on profitable, dominant companies with strong long-term business models.

A tech titan uses technology to transform its industry. These companies often have pricing power, strong margins, and leadership positions. They are not limited to AI names and include firms like Uber or Netflix.

We typically hold 15 to 25 names. Concentration allows stock selection to matter. We are not forced to own weaker names just because they are in an index, which improves both risk control and performance.

We hold stocks for long-term exposure and use synthetic replication for tactical adjustments. This allows us to express short-term views without constantly trading shares or creating unnecessary transaction costs.

It helps reduce cash drag. Synthetic longs keep the portfolio fully invested while maintaining liquidity. The unused capital is placed in Treasuries, improving efficiency while still allowing us to meet redemptions.

Operational efficiency directly impacts returns. Using our own ETFs allows better execution, lower costs, and faster adjustments. Most importantly, we avoid double dipping on fees and pass those efficiencies to investors.

Markets change constantly. A fixed covered call strategy always caps upside. We adjust option exposure depending on momentum and risk, allowing participation in rallies and protection during uncertainty.

Protective puts are used selectively to reduce downside and volatility. In recent sell-offs, those puts were monetized for profit. They are not just insurance but an active risk management tool.

In downturns, volatility rises, which can benefit option income. We increase defensive strategies like cover calls and selective puts to reduce sensitivity and protect capital while still generating income.

Return of capital improves tax efficiency. It allows distributions to reduce cost basis instead of being taxed immediately. This helps investors compound income without annual tax drag until they exit.

First-generation ETFs focused mainly on income and accepted underperformance. Second-generation strategies aim to deliver both income and price appreciation by actively managing delta and option exposure.

Strong products don’t automatically succeed. Education and communication matter. Investors want to understand the process, not just the yield. Trust is built through transparency, discipline, and consistency over time.