Desert Rose Capital Management (“DRCM”) was founded as a result of the development of the Integrated Options Portfolio by Kirk Stafford.
After running a successful service-based business for several years and having success in both his real estate and stock investments, Kirk retired at the age of 32. During his retirement, Kirk’s lifelong passion for investing intensified even more. Rather than fish or golf like other retirees, Kirk found himself immersed in the world of stocks, bonds, options and currencies.
After a few years of being retired, Kirk felt he needed to do something more with his life. So, he followed his passion and went to work for a big, national investment advisory firm. He never imagined recommending any of the options strategies that he personally used with the public due to the risk, complexities and/or mediocre results that known option strategies entailed.
One day, while reviewing various option pages, Kirk had an “aha” moment for using options in a way that he had never before seen nor heard.
It occurred to him that rather than purchase the underlying stocks outright—he could instead purchase recently available, long-term call options on those same stocks at a fraction of the cost. He could then put the balance into CD’s or any number of other fixed income instruments that could offset the costs of the options.
In this manner, he could greatly reduce the risks of stock ownership, earn extra interest and still participate in the entire upside of the stock or stock fund through the options. Because of his knowledge of options and investing, he instantly knew the great significance that this might have for the average investor.
Naturally, Kirk assumed that other managers must have been using this strategy already. To his surprise, he realized that few, if any, were investing in this manner.
Over the course of the next couple years, Kirk had a couple of other significant “aha” moments, including how to structure and better incorporate fixed income assets for less risk and better performance. These improvements helped form what is now known as the Integrated Options Portfolio (IOP).
The full benefits of an IOP are best realized through customization to each specific client under the direction of professionals. Kirk formed Desert Rose Capital Management, Inc. in 2010 with the purpose of bringing these benefits into the hands of trained financial professionals, who could then take the IOP into the lives of their clients.
And the rest, as they say, is history!