Founder’s Message

A Message from Randy Swan

A Fresh Approach to an Age-Old Dilemma

Many investors believe that they can reduce risk with­out a sim­i­lar reduc­tion in return by diver­si­fy­ing over sev­er­al broad asset class­es.

Yet the risk reduc­tion pro­vid­ed by diver­si­fi­ca­tion is strict­ly the­o­ret­i­cal: It depends on his­tor­i­cal rela­tion­ships between asset class­es con­tin­u­ing into the future, and there’s no guar­an­tee that will occur. Asset allo­ca­tion and mod­ern port­fo­lio the­o­ry break down because they do not define risk; they mere­ly express it in terms of his­tor­i­cal stan­dards.

At Swan, we believe in defin­ing and min­i­miz­ing mar­ket risk for our investors.

Prophesy as much as you like, but always hedge.”

- Oliv­er Wen­dell Holmes

We’ve put this belief into action in our Defined Risk Strat­e­gy, a pro­pri­etary method of com­bi­na­tion of a hedged equi­ty approach with option income strate­gies. Numer­ous pub­lished stud­ies, and our recent white paper, show the ben­e­fits port­fo­lio hedg­ing with options can have in terms of return, volatil­i­ty, and risk. We believe our strat­e­gy can be applied to near­ly any asset class with suf­fi­cient liq­uid­i­ty.

Swan Glob­al Invest­ments has become a lead­er in hedged equi­ty and options-income strate­gies by tru­ly inno­vat­ing and chang­ing the mar­ket­place. We seek to offer prod­ucts that are supe­ri­or in per­for­mance, tax effi­cien­cy and trans­paren­cy, and estab­lish our­selves as the best choice for investors.

Our goals ulti­mate­ly are dri­ven by a desire to help peo­ple invest how we would want to invest per­son­al­ly. In fact, many Swan employ­ees invest in the DRS and all cor­po­rate con­tri­bu­tions to employ­ee prof­it shar­ing are invest­ed in the strat­e­gy.

How­ev­er, we rec­og­nize that not all investors are alike, with tremen­dous vari­a­tion between indi­vid­u­al investor’s risk tol­er­ance, goals, and invest­ment time frames. As such, we have endeav­ored to devel­op a broad range of offer­ings to apply the Defined Risk Strat­e­gy across numer­ous asset class­es through a num­ber invest­ment vehi­cles in order to provide a range of investors—whether con­ser­v­a­tive, mod­er­ate or aggressive—with a bet­ter way to invest.

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Randy Swan

Randy Swan
President & Portfolio Manager