Separately Managed Accounts (SMA)

Options-Based Strategies

Our suite of options-based offerings reflects our commitment to providing long-term investors with thoughtfully designed and expertly built solutions to help investors meet specific goals, including capital appreciation, downside risk mitigation, income generation, and tax efficiency.

The Defined Risk Strategy: One Strategy - Multiple Variations

In 1997, we launched the Defined Risk Strategy (DRS), a hedged equity approach, in a Separately Managed Account (SMA) format. 

 

Our goal was to provide long-term investors with a buy-and-hold strategy that is always hedged to mitigate market risk. 

Ability to Tailor Risk/Return by Adjusting DRS Components

The three main components of the DRS provide the ability to tailor the strategy to investor needs.

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 LEAPS

 

Step 3: Seek Additional Return

Buy Calls and Call Spreads, May Sell Calls

Flagship Variation

Swan Defined Risk 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 LEAPS

 

Step 3: Seek Additional Return

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 LEAPS

 

Step 3: Seek Additional Return

Buy or Sell Calls and Puts 

Global Hedged Equity Portfolios

Define Risk Across Global Asset Classes

Globally diversified portfolios are separately managed account strategies designed to meet the specific needs of high-net-worth individuals, including global diversification, risk mitigation (market risk, currency risk, and more), capital appreciation, and tax efficiency.

Global Equity Exposures

U.S. Large Cap

(S&P 500)

U.S. Small Cap

(Russell 2000)

International Equities

(MSCI EAFE, MSCI EM)

Real Assets

Gold

(EX: GLD or SGOL)

Fixed Income & Cash Equivalent

Fixed Income

(EX: XCCC)

Interested in the Global Portfolios?

Talk to your financial advisor about adding Swan Global Portfolios or SMAs to your portfolio.

We are dedicated to helping you build stronger portfolios. To contact our team, call (844) 792-6246.

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.