In 2005 Daniel S. Mintz and Michael G. Riley founded a new consulting and investment company, based on the proposition that opportunities formerly accessible only on the world's trading floors would soon be equally available to motivated off-floor participants.
Coastal Management Group LLC's managing partners have proven track records working individually and in tandem. By experience, wisdom, and temperament, the managing partners of Coastal Management Group LLC are ideally suited for consulting in their areas of expertise.
Daniel S. Mintz
For eight years Mr. Mintz taught mathematics and computer science at the undergraduate and graduate levels. He then shifted careers, and traded for twenty-five years, primarily on the Amex and the CBOE, where his firm carved out a large share of the burgeoning options market.
When Mr. Mintz graduated MIT , the listed options market had not yet begun. However, while at MIT, he absorbed a strong background and useful skills for what would later develop on the trading floors. He also crossed paths with seminal figures in the field of finance, and after he became a practitioner, Mr. Mintz was the beneficiary of insights and advice from personal communications with several of them, including Robert Merton, Myron Scholes, and Fischer Black.
On the floor in the early days, Daniel had to develop for himself many of the techniques that later became standard in the industry. He was a very early user of computers in options trading and wrote the software himself for what were slow, primitive machines that required facility with operating systems and compilers.
When tax spreads became viable, Mr. Mintz was on the leading edge. When puts came along, he was among the first to see the potential of conversions, reversals, and collars. When ETFs began, he was in there, making markets in them with his own money. When interest rate options began trading, he commuted to the CBOE to put on positions himself, having already traded government and corporate fixed-income instruments on the floor of the Amex.
Along the way, Mr. Mintz formed a couple of noteworthy alliances. With Spear Leeds and Kellogg he joined in the purchase of several media properties. With Sanford C. Bernstein he helped launch their options brokerage and positioning arm. From these ventures Mr. Mintz picked up some good contacts and some valuable background in financial analysis.
At the American Stock Exchange Mr. Mintz rose through the ranks to become chairman of the Option Market Makers Association, representing the interests of more than five hundred Exchange members. He also became a Floor Official and an Exchange Official, serving on the Allocations Committee and as part of many Disciplinary Panels. In addition, Mr. Mintz assisted on the Facilities Committee, overseeing expansion, and for many years on the New Products Development Committee.
After a brief retirement Daniel was happy to join forces with Gary Herman and Mike Riley. Coastal Management Group has the right attitude, the right skills, and good prospects.
Mr. Mintz holds degrees from MIT and from the Courant Institute of Mathematical Sciences. He is married, with two sons.
Michael G. Riley
Mr. Riley built from scratch an Amex specialist unit which grew over time until at his retirement from floor trading he had responsibility for over a hundred employees. During his career he oversaw the introduction and managed the risk of many innovative derivative products.
Michael Riley has been involved in the listed derivatives market since its inception in April 1973, working on the new trading floor of the CBOE in the summers of 1973 through 1977 while attending the University of Connecticut. At UConn Mr Riley helped introduce the finance department's derivatives analysis section in the School of Business. Upon graduation in 1978 Michael joined Paine Webber in their newly formed retail listed options department. Michael was quickly promoted to vice president in charge of the retail and small institutional options trading and positioning desks. In 1981 Michael participated in planning and implementing one of the first index arbitrage and programmed trades, crossing the CBOE's OEX index (as proposed, later the S&P 100) versus the first listed stock index index future The Value Line Index (the Kansas City Board of Trade)
In 1982 Michael left Paine Webber to trade for one of the very few "conversion-reversal arbitrage firms", for which he traded Merrill Lynch and XMI on the American Stock Exchange. In 1984 NYSE specialist firm Walter Frank&Co hired Michael to develop their nascent options trading effort in NYA and various index arbitrage and equity options arbitrage. In 1986 Michael was back at the Amex, this time at GHM, where he worked with Gary Herman to help develop risk management procedures and a training regimen for younger traders. Michael acted as lead specialist in some of the world's most active individual and index options At GHM Michael participated in pricing and consulting on hybrid products such as primes and scores and equity rights and warrants. Michael continued with GHM, until 1995.
In 1995 Mr. Riley joined LETCO, the renowned Chicago-based derivative specialists. LETCO was the largest trading group on the largest exchange, and Michael was hired to drive their expansion into New York. Mr. Riley built a 10-person 13-product specialist unit into four separate divisions comprising over 100 employees. product groups included Options trading, equities, bond, and equity index specialists, exchange traded funds, structured products, and market making all reported to Mr. Riley. Letco Specialists LP, as the unit came to be named, was well known for its trading in American Express, Texaco, and Yahoo. Letco Specialists LP was acquired along with the rest of LETCO and Stafford Trading in 2002 by Toronto Dominion Bank. Michael was appointed managing director at TD Options LLC in charge of U.S. East Coast listed option trading with 150 traders reporting to him. TD Options LLC managed 345 equity option classes, 50 equities, ETF arbitrage, and index option trading.
Michael retired in late 2002 and moved to Rhode Island, where he traded for his own account until 2005, In 2005 he formed Coastal Management Group LLC with Daniel Mintz and Gary Herman. Coastal management Group LLC formed the hedge fund Narraganset Fund and (NMSF LLC) in June 2006. Narragansett Fund won national recognition in 2007 and 2008 with Lipper Analytical Reuters Awards for best performing Multi Strategy Hedge Fund in the United States. Michael is married and has three children. He has a series 65 license and is a member at the Providence Society of Security Analysts. Michael is on the advisory boards of Telemark, Exceed Investments and, founder RIHFA. Michael enjoys poker, board games, and puzzles and is a member of Rhode Island and American Mensa Clubs.
The Bottom Line
It is our mission to provide confidential investment management services and perspective previously unavailable to off-floor participants to all qualified investors.