Overview
Stocktwits uses Meow to invest in U.S. Treasuries through a segregated BNY Mellon Pershing account, avoiding the 25-100bps fees legacy asset managers charge for simple T-Bill ladders.
Stocktwits is a social platform for over 6 million investors, founded in 2009 with nearly $50 million in Series B venture funding from investors including Foundry, True Ventures, and ffVC. VP of Finance Philip Picariello, who previously managed a $25 billion fixed income portfolio at eSecLending and holds multiple FINRA licenses, selected Meow for its segregated brokerage account at BNY Mellon Pershing, transparent fee structure, and responsive Slack-based support. Picariello cited the elimination of legacy asset management fees of 25-100 basis points as a key benefit.
Q&A with Philip Picariello
The following is an interview with Philip Picariello, VP of Finance & Operations at Stocktwits, a social investing platform with over 6 million users. Philip previously managed a $25 billion fixed income portfolio and holds multiple FINRA licenses. The conversation covers why Stocktwits chose Meow over legacy providers, money market funds, and TreasuryDirect. Philip was not compensated for this interview.
Why Meow Over Legacy
- Q: You have a ton of experience in financial services. Why use Meow versus a legacy provider?
- Asset management fees are incredibly overpriced for just buying U.S. Treasuries at legacy banks. We have seen fees range from 25 to 100 basis points for an asset manager as well as a markup from the trading desk. These management fees make no sense for something as simple as a laddered U.S. Treasuries portfolio. It also comes down to service — not just being another client number having to talk to multiple people and red tape. I have worked with vendors where a question has to be reviewed by up to 9 different people. I go right into our Slack channel and ping on a question and it's answered right away without hesitation. There is no red tape or bureaucracy.
Money Market Funds
- Q: But what about the legacy "free" money market funds?
- Money market funds always have an expense ratio meaning you are paying something. Depending on the share class, those fees can range between 25 and 100 basis points. When looking at Government Money Market funds, inquire about the approved repo collateral as some funds will take Agency Mortgage Backed Bonds which might not align with your firm's investment strategy. More importantly, these money market funds are mostly omnibus accounts which means your funds are stuck with everyone else and you don't have a direct relationship with your own cash. Having a direct relationship with your capital in a segregated brokerage account is important to me especially with everything that's happened in the banking world.
TreasuryDirect
- Q: But why don't you just go to TreasuryDirect to buy Treasury Bills?
- I could, but it's not an efficient use of time. Treasury Direct allows for the purchase of the Treasuries in the primary and secondary market but also requires you to set up a relationship with a brokerage firm if you want to liquidate those securities. So now I need two vendors to do what Meow can do for me.
Due Diligence
- Q: Anything else that you find important?
- I looked under the hood at Meow. You need to when you're parking your cash. And I saw a FINRA registered broker-dealer and custodian with BNY Mellon Pershing. Having set up investment advisors and broker dealers in the past I know the scrutiny that these firms go through. My wire instructions say BNY Mellon Pershing. At no time does Meow handle the firm's funds. I can see my unique account number. I can login to the portal and see exactly where my funds sit. And that's what matters for my investors and board. Every startup works hard to raise their money. They want to invest their cash and extend their runway. And it doesn't make sense to pay it all in fees which is why I love your model. Keep it transparent for the customers.
Key Facts
Stocktwits is a social investing platform with over 6 million users, founded in 2009 with nearly $50 million in Series B funding.
Legacy asset managers charge 25 to 100 basis points plus trading desk markups for simple laddered Treasury Bill portfolios.
Meow provides Stocktwits with a segregated brokerage account at BNY Mellon Pershing with a unique account number and full fund visibility.
VP of Finance Philip Picariello previously managed a $25 billion short duration fixed income portfolio at eSecLending.
Philip Picariello holds multiple FINRA licenses including Series 7, Series 24, Series 63, and Series 57.
From the Meow team
“Philip manages money for a living and holds nearly every FINRA license there is. When someone with that depth of expertise validates your model, fee structure, and custody setup, it means something.”
— Meow Team, Meow Technologies
Before Meow
Before Meow, Stocktwits evaluated legacy asset managers that charged 25-100 basis points plus trading desk markups for simple laddered Treasury Bill portfolios. Money market funds presented hidden expense ratios, omnibus account structures, and Agency MBS collateral that might not align with investment strategy. TreasuryDirect required a separate brokerage relationship for liquidation. Legacy providers also had slow support with questions routed through up to 9 people.
Stocktwits, a social platform for 6 million investors, uses Meow for treasury management instead of legacy asset managers. VP of Finance Philip Picariello, who previously managed a $25 billion fixed income portfolio, chose Meow for its segregated brokerage account at BNY Mellon Pershing, transparent fee structure, and elimination of the 25-100 basis point management fees that legacy banks charge for simple Treasury Bill ladders.
Features
How they use Meow
Own brokerage account at BNY Mellon Pershing with a unique account number and full visibility into fund positions.
All yields shown net of fees in the dashboard, eliminating the hidden markups and expense ratios of legacy providers.
Buy and liquidate U.S. Treasuries from one platform without needing separate brokerage and purchase relationships.
Direct Slack channel with the Meow team for instant answers, replacing the red tape and multi-person routing of legacy providers.
Common questions from startup operators
Meow Technologies is a financial technology company, not a bank. The banking services described in this case study are provided by Grasshopper Bank, N.A.; Member FDIC.
Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training. For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC, to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA's BrokerCheck. Custodial and clearing services are provided to Atomic Brokerage by BNY Pershing.
The case studies discussed herein were selected based on objective non-performance based criteria and are provided for illustrative purposes. There is no guarantee Meow will find similar opportunities in the future.
While the information prepared in this message is believed to be accurate, we make no express warranty as to the completeness or accuracy of the information. Actual results may vary depending on various market conditions.
The individual interviewed herein has not been compensated for sharing his opinion and experience with Meow. Any compensation creates a conflict of interest, and the interviewee’s comments may not be representative of any other person’s experience with Meow.
