Stephen Solaka and Daniel Beckwith have formed Belmont Capital Group in Century City, California.

The firm provides investment consulting and hedging solutions to investors worldwide.

Beckwith and Solaka attended Michigan State University together and both began their investment careers as options traders on the Chicago Board Options Exchange.

The two have formed Belmont because they see a void among investment advisory firms in providing true risk management to their clients.

Beckwith says: "Most investors adhere to the theory that equities always go up in the long run. While this may be true, individuals and families have shorter term liquidity needs and cannot sustain a down 40 per cent market. We seek to minimise volatility and large drawdowns for equity investors."

Solaka, most recently with Dorchester Capital Advisors, adds: "Long only investors have sustained a great deal of pain over the previous decade. We believe in traditional diversification however during times of stress this method of risk management has often suffered. This is our reason for forming Belmont Capital Group."

The firm offers investment consulting for clients investing USD2m. Belmont's hedged ETF portfolios are available in a separate account with a USD250,000 minimum.