Send a Message

[contact-form-7 id="2362" title="Send a Message"]
Loading...
Defined Risk Strategy 2017-08-08T12:04:25+00:00
Celebrating 20 years of the Swan Defined Risk Strategy

The Defined Risk Strategy

Helping investors grow and protect wealth since 1997.

We devel­oped the Defined Risk Strat­e­gy (DRS) in 1997 as a way to offer our clients a dis­tinc­tive, inno­v­a­tive tool for min­i­miz­ing mar­ket risk.

The DRS is a time-test­ed invest­ment approach that has been applied to var­i­ous asset class­es and avail­able in a range of invest­ments vehi­cles.

Swan Defined Risk Strategy - Investment Objectives

ACHIEVE DESIRED OUTCOMES WITH A TIME-TESTED APPROACH

The DRS is designed to pro­vide sta­ble returns over a full mar­ket cycle, while hedg­ing against large stock mar­ket declines. We pur­sue this goal through a rules-based, active­ly man­aged hedged equi­ty invest­ment process.

Swan Defined Risk Strategy - Investment Process

THE DEFINED RISK STRATEGY INVESTMENT PROCESS:

  • Always invest­ed to par­tic­i­pate in mar­ket appre­ci­a­tion over time
  • Hold­ing index-based ETFs
  • Always hedg­ing invest­ments with puts
  • Gen­er­ate mar­ket-neu­tral income through the use of options
  • Fol­low­ing a rules-based process to elim­i­nate the impact of emo­tions on invest­ment deci­sions.
Review the DRS Process
Swan Defined Risk Strategy - Investment Approach

MAXIMIZE WEALTH BY MINIMIZING LOSSES

The mar­ket is unpre­dictable, mak­ing it dif­fi­cult to time the mar­kets or con­sis­tent­ly pick out­per­form­ing stocks. That’s why we believe that the key to wealth cre­ation is to remain invest­ed while reduc­ing down­side risk.

By defin­ing the risk with a hedg­ing strat­e­gy, we seek to rede­fine the risk/return pro­file of the port­fo­lio.

See the DRS Tar­get­ed Returns
Swan Defined Risk Strategy - Investment Implementation

A SOLUTION TO THE CHALLENGES INVESTORS FACE TODAY AND BEYOND

The Defined Risk Strat­e­gy solves many of the most press­ing chal­lenges that investors and advi­sors strug­gle to solve:

  • Seek­ing invest­ment return in a low yield world
  • Min­i­miz­ing volatil­i­ty
  • Tim­ing and sequence of returns chal­lenge
  • Retire­ment income chal­lenge
  • Bear mar­ket pro­tec­tion
  • Tax effi­cien­cy
Swan Defined Risk Strategy - Investment Approach

A TRACK RECORD OF SUCCESS

Our con­sis­tent approach offers investors a bet­ter way to grow and pro­tect wealth.

The Defined Risk Strat­e­gy is designed to out­per­form the under­ly­ing bench­mark over a full mar­ket cycle (bull and a bear mar­ket). Since incep­tion in 1997, the DRS has done just that.

The S&P 500 has had four down years since 2000, for a total cumu­la­tive com­bined loss of more than 80%. Dur­ing those years the Swan DRS pro­vid­ed a cumu­la­tive com­bined return of +18%*. This per­for­mance dur­ing down­turns is one rea­son the Swan DRS has con­sis­tent­ly out­per­formed the S&P 500 over full mar­ket cycles.

See More DRS Per­for­mance

Swan Defined Risk Investing

The strategy’s suc­cess prompt­ed us to apply it across mul­ti­ple prod­ucts and assets, pro­vid­ing our clients with addi­tion­al oppor­tu­ni­ties to use this time-test­ed approach.

Swan
DRS SMA

LEARN MORE

Swan
DRS FUNDS

LEARN MORE

Swan
DRS CIT

LEARN MORE

Swan
DRS OVERLAY

LEARN MORE

Swan
RE

LEARN MORE
*Source: Swan Global Investments and Morningstar; the S&P 500 index in an unmanaged index, and cannot be invested into directly. Past performance is no guarantee of future results. The performance numbers referenced above are used for illustrative purposes to indicate the DRS’s performance during Bear Market conditions.