Our Founder’s Message

A Message from Randy Swan

A Fresh Approach to an Age-Old Dilemma

"Prophesy as much as you like, but always hedge.”

- Oliver Wendell Holmes

We’ve put this belief into action in our Defined Risk Strategy, a proprietary method of combining a hedged equity approach with option income strategies. Numerous published studies, and our research white paper on options show the benefits portfolio hedging with options can have in terms of return, volatility, and risk. We believe our strategy can be applied to nearly any asset class with sufficient liquidity.

 

Swan Global Investments has become a leader in hedged equity and options-income strategies by truly innovating and changing the marketplace. We seek to offer products that are superior in performance, tax efficiency and transparency, and establish ourselves as the best choice for investors.

 

Our goals ultimately are driven by a desire to help people invest how we would want to invest personally. In fact, many Swan employees invest in the DRS and all corporate contributions to employee profit sharing are invested in the strategy.

 

However, we recognize that not all investors are alike, with tremendous variation between individual investor’s risk tolerance, goals, and investment time frames. As such, we have endeavored to develop a broad range of offerings to apply the Defined Risk Strategy across numerous asset classes through a number investment vehicles in order to provide a range of investors—whether conservative, moderate or aggressive—with a better way to invest.

Many investors believe that they can reduce risk without a similar reduction in return by diversifying over several broad asset classes. Yet the risk reduction provided by diversification is strictly theoretical: It depends on historical relationships between asset classes continuing into the future, and there’s no guarantee that will occur.

Asset allocation and modern portfolio theory break down because they do not define risk; they merely express it in terms of historical standards.

At Swan, we believe in defining and minimizing market risk for our investors.

 

Founder & Lead Portfolio Manager