Why The Defined Risk Strategy
Seeking a Better ‘Buy and Hold’
“Market risk, also called, systematic risk, cannot be eliminated through diversification, though it can be hedged against.” — Investopedia
Many investors struggle to ‘hold on’ when losing money, often leading them to ‘buy and fold’. Research by Dalbar, Inc. and others repeatedly document the impacts of losses and emotions on investors’ realized returns.
So we seek to help investors hold on, by losing less and smoothing out the ride.
Always Invested — We believe that markets tend to go up over time, so we remain always invested.
Always Hedged — We also believe severe losses can derail investors from their goals, so we remain always hedged.
In an industry focused on products, we’re focused on a solution.
The Defined Risk Strategy seeks to address many of the most pressing challenges that investors and advisors face today and beyond:
- Investment return in a low yield world
- Retirement income challenge
- Timing and sequence of returns risk
- Bear market protection
- Tax efficiency