The Defined Risk Strategy (DRS) is distinct—traditional investment classifications don’t fit and standard indices are not ideal benchmarks.
Our hedge equity approach creates a new risk/return profile for the portfolio that is different than a long-only equity investment. As such, our returns over market cycles are not closely correlated with the underlying equity investment.
So what is the most appropriate benchmark?
In an industry often focused on short-term performance, investors with long-term goals often become fixated on chasing short-term returns or ‘beating the market’.
To help investors achieve desired results over the long-term, we focus on generating consistent returns through full market cycles.
Source: Source: Swan Global Investments and Morningstar; the S&P 500 Index is an unmanaged index and cannot be invested into directly. Swan DRS returns are from the Select Composite, net of all fees. NOTE – this chart is for illustration purposes, not a guarantee of future performance. The charts and graphs contained herein should not serve as the sole determining factor for making investment decisions.
Long-term investment goals require years or even decades to accomplish, so we believe the goals of an investor should mirror the goal of the DRS: to produce stable, consistent results over market cycles.
As such, the Target Return Band serves as the best benchmark for our strategy relative to our goal.