The Defined Risk Strategy – Investing Redefined®

Solving Challenges for Institutional Investors

Striking the balance between risk asset exposure to generate returns and providing sustainable income is critical to fulfilling the mission over full market cycles.

Addressing Market Risk and Seeking Consistent Returns

Achieve long-term objectives to fulfill your impactful and enduring mission. 


Overcome the unique funding and spending challenges going forward. 


Launched in 1997, the Defined Risk Strategy (DRS), is a proven approach to generating consistent returns and protecting capital—two keys to long-term success and an enduring legacy.

We are in the business of shepherding futures.


We embrace the opportunity to meaningfully support your mission.

Why The Defined Risk Strategy

  The risks to capital in fixed income and equities have rarely been higher with interest rates so low and U.S. equity valuations so high.

Why The Defined Risk Strategy

  Consistent returns, capital preservation, and sustainable portfolio income are of premium concern,

yet solutions seem scarce.

Why The Defined Risk Strategy

 Because diversification alone is not enough to address market risk.

“Market risk, also called, systematic risk, cannot be eliminated through diversification, though it can be hedged against.” – Investopedia

“By actively seeking to not lose big, we believe that investors will be better off in the long run.”

Randy Swan

Founder, CEO, and Lead PM

How the Defined Risk Strategy Works

Buy, Hold, and Hedge

Market risk is too big a threat to be dealt with passively. So we hedge it.

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

The Defined Risk Strategy Process — Transparent, Repeatable, Disciplined


The effectiveness of the hedge and degree of downside risk mitigation varies with market conditions. The Defined Risk Strategy can and does have periods of losses.

Innovative approach to smoothing returns and protecting capital since 1997.

The DRS was launched in 1997 to provide investors with a better way to invest over full-market cycles—generate consistent returns and protect irreplaceable capital.


So how’d we do?

Defined Risk Investing

The success of our Defined Risk Strategy prompted us to apply it across multiple products and assets, providing investors with additional opportunities to use this time-tested approach.

Learn more about the available DRS investment structures, the strategy, portfolio implementation or other questions, feel free to contact our institutional consultants.