Swan Hedged Equity

Risks to capital have rarely been greater with yields so low and equity market valuations so high.

We believe hedged equity is distinctly suited to help investors navigate this challenging capital market landscape.

Market risk is the possibility of an investor experiencing losses
due to factors that affect the overall performance of the financial
markets in which he or she is involved.

 

Market risk, also called ‘systematic risk,’ cannot be eliminated
through diversification, though it can be hedged against.

-INVESTOPEDIA

Our Hedged Equity Strategy – Investing Redefined®

Hedged equity strategies generally combine some underlying equity market exposure with a hedge to offset losses.

 

There are many ways to hedge equity: options contracts, futures contracts, and investments in other assets believed to be non-correlated to the underlying investment. Put options, for example, are inversely correlated to the underlying investment,  and therefore may serve as an effective hedge.

 

While hedging is often considered a short period tactic, long-term investors may want to consider the benefits of a long-term hedging strategy.

Our Defined Risk Strategy is a distinct approach to hedged equity that remains always invested and always hedged.

 

We apply a unique hedging process that actively manages longer-term put options to directly address market risk, seeking to provide long-term investors with a smoother investment experience.

 

Since 1997, our Defined Risk approach to hedged equity has redefined the risk/return profile of long-term equity investing.

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