A Distinct Investment Philosophy

Defining Risk, Enhancing Portfolios

Following the extended postcrisis bull run in both equities and fixed income, the way forward leaves less room for error and future return forecasts are muted.

 

Going forward the traditional investment approaches won’t replicate the performance of the past.

It’s not about adjusting the size of slices in the portfolio pie.

The pie needs to look different to address these unique challenges.

 

Since 1997, our simple, yet innovative investment philosophy has redefined the approach to portfolio growth and risk management through market cycles.

We believe:

Equity markets tend to go up over time, so we remain always invested.

Equity markets experience unpredictable periods of major volatility, so we remain always hedged.

A hedged diversified portfolio is superior to a diversified portfolio over time.

Randy Swan

Founder, CEO, and Lead PM

Pioneering Options & Hedging Strategies

Considerable research supports the value institutions can derive from the use of option-based strategies to improve risk-adjusted returns.

 

Launched in 1997, our hedging and options strategies seek to address market risk and smooth return streams across market cycles.

In an industry in search of ‘non-correlation’, we use put options, an inversely correlated asset, to protect the portfolio.

Because diversification alone is not enough.

Market risk, also called ‘systematic risk’, cannot be eliminated by diversification, though it can be hedged.
– Investopedia

We hedge to protect irreplaceable capital.

By actively seeking to not lose big, we believe our investors will be better off in the long run.
– Randy Swan, Founder, CEO, and Lead PM

By remaining always invested and always hedged, our Defined Risk Strategy may help institutions strike the balance between risk asset exposure while reducing the lasting impact of major drawdowns on obligations or funded status.

Insights on Institutional Concerns

With interest rates near all-time lows and stocks near all-time highs, institutions are stuck between a rock and a hard place.

Learn how our strategy can help institutions address this Dual Dilemma.

A strategy for generating consistent rolling returns and improve portfolio resiliency through market cycles.

Discover how our strategy may serve as a sustainable income vehicle, providing growth and income without duration risk.

Fixed Income Complement, Low-Volatility Equity Allocation, of Alternative Allocation?

See how institutions are utilizing hedged-equity allocations to serve various roles in the portfolio.

Buy, Hold, and Hedge

Our distinct investment philosophy drives our Always Invested, Always Hedged process.

Helpful Resources