Separately Managed Accounts (SMA)

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 reflect our commitment to provide long-term investors with solutions that accommodate different investor risk tolerances and objectives.  

One Strategy - Multiple  Applications

Define Risk Across Global Asset Classes

Utilize hedged equity strategies to complement current long-only allocations in various equity asset classes.

Domestic Equity

U.S. Large Cap

(S&P 500)

U.S. Small Cap

(Russell 2000)

International Equity

Foreign Developed

(MSCI EAFE)

Emerging Markets

(MSCI EM)

Real Assets

Gold

(GLD)

One Strategy - Multiple Variations

Ability to Tailor Risk/Return by Adjusting DRS Components

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.

Prime Variation

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 (ATM) LEAPS

 

Step 3: Option Premium Trades

Buy Calls and Call Spreads, May Sell Calls

Select Variation

Swan Defined Risk Select 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 (ATM) LEAPS

 

Step 3: Option Premium Trades

Buy or Sell Calls and Puts 

Growth Variation

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 (OTM) LEAPS

 

Step 3: Option Premium Trades

Buy or Sell Calls and Puts 

A Suite of Global Hedged Equity Solutions

Review our Suite of Solutions
Accessing Our Suite of Defined Risk SMAs

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.

More About the Defined Risk Strategy

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.