In 1997, we launched the Defined Risk Strategy in Separately Managed Account (SMA) format.
Our goal was to provide long-term investors a buy-and-hold strategy that is always hedged to mitigate market risk.
Today, our suite of global hedged equity offerings reflects our commitment to providing long-term investors with solutions that accommodate different investment objectives and tolerance for risk.
Utilize hedged equity strategies to complement current long-only allocations in various equity asset classes.
U.S. Large Cap
(S&P 500)
U.S. Small Cap
(Russell 2000)
Foreign Developed
(MSCI EAFE)
Emerging Markets
(MSCI EM)
Gold
(GLD)
We can tailor risk & return by adjusting the three core DRS components within an SMA to serve a wide range of investor objectives and risk tolerance levels.
The result is three core variations of the DRS process that can be applied to various asset classes in SMA format.
Swan Defined Risk Prime Strategy
Focused on a smooth investment ride with downside protection.
Step 1: Buy Equity
(low-cost ETFs)
Step 2: Hedge the Equity
At-the-Money LEAPS
Step 3: Seek Additional Return
Buy Calls and Call Spreads, May Sell Calls
Swan Defined Risk Strategy
Seeking long-term growth of capital, while mitigating downside risk.
Step 1: Buy Equity
(low-cost ETFs)
Step 2: Hedge the Equity
At-the-Money LEAPS
Step 3: Seek Additional Return
Buy or Sell Calls and Puts
Swan Defined Risk Growth Strategy
More growth oriented, with some downside protection.
Step 1: Buy Equity (low-cost ETFs),
Buy Long-Dated Calls
Step 2: Hedge the Equity
Out-of-the-Money LEAPS
Step 3: Seek Additional Return
Buy or Sell Calls and Puts
DRS SMAs are available at major custodians and several broker-dealer platforms. For more information about the strategy and platform availability, please feel free to contact our investment consultants.
Defining Separately Managed Accounts
A Separately Managed Account (SMA) is a portfolio of assets under the management of a professional investment firm. The SMA structure is for qualified investors through financial advisory firm relationships and require a minimum investment. The vast majority of such investments firms are called registered investment advisors, which are regulated by of the U.S. Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940. One or more portfolio managers are responsible for day-to-day investment decisions, supported by a team of analysts, operations and administrative staff. SMAs differ from pooled products, like mutual funds or ETFs, in that each portfolio is unique to a single account, in which the manager has discretion to make investment decisions for each account.