We believe:
Equity markets tend to go up over time, so we remain always invested.
Large losses may derail investors from their goals, so we remain always hedged.
We believe loss aversion is the biggest emotional driver of investor behavior.
Even the best investment plan is only as good as one’s ability to stick with it.
Smoothing the ride and protecting capital is critical to remaining invested.
Our simple, yet innovative investment philosophy and strategy were conceived to help define and limit risk for consistent returns and capital preservation.
A HEDGE IS NOT INSURANCE AGAINST LOSSES
The effectiveness of the hedge and degree of downside risk mitigation varies with market conditions. The Defined Risk Strategy can and does have periods of losses.
By actively seeking to not lose big, we believe that investors will be better off in the long run.
In an industry in search of ‘non-correlation’, we use put options, an inversely correlated asset, to protect the portfolio.
Since 1997, our hedging and options strategies have been addressing the biggest threat long-term investors face: market risk.
Because diversification alone is not enough.
“Market risk, also called ‘systematic risk’, cannot be eliminated by diversification, though it can be hedged against.” – Investopedia
We hedge to protect irreplaceable capital.
“A hedged diversified portfolio is superior to a diversified portfolio over time.”
– Randy Swan, Founder, CEO, and Lead PM
Our distinct philosophy lays the foundation of our goal-oriented approach to address investors’ primary concerns: achieving outcomes and retirement income.
With interest rates near all-time lows and stocks near all-time highs, investors are stuck between a rock and a hard place.
Learn about the impacts of this Dual Dilemma and what you can do about it.
You invest to achieve a desired outcome or goal.
See how consistency of returns through market cycles improves your chances of achieving desired investment outcomes.
The biggest concerns of retirees relate to income. Will I have enough income with such low interest rates? Will my retirement income last throughout my lifetime?
Discover a source of sustainable income that isn’t tied to bonds.
Lower volatility. Protection of capital.
See how a hedged-equity strategy can fit into a portfolio to help provide for these needs.
Our distinct investment philosophy drives our Always Invested, Always Hedged process.
A HEDGE IS NOT INSURANCE AGAINST LOSSES
The effectiveness of the hedge and degree of downside risk mitigation varies with market conditions. The Defined Risk Strategy can and does have periods of losses.
