Swan Overlay Strategies
The Swan Overlay Strategies
Defining Risk — Enhancing Portfolios
Swan Overlay Strategies are designed to enhance traditional investment return streams by providing a portfolio hedge or increasing portfolio yield.
Swan Overlay Objectives
The Swan Overlay Strategy is designed to protect against large drawdowns and enhance portfolio returns. The portfolio management methodology is based upon strategies applied by Swan in its flagship S&P 500 based Defined Risk Strategy since 1997.
The Swan Income Strategies are designed to provide additional portfolio income for separately managed client portfolios. Swan seeks to collect volatility risk premia through the sale of options spreads that are then actively managed consistent with our risk management methodology.
The overlay has a few differences from our traditional DRS process, including:
- Investors may use their own underlying equity portfolios
- Customized hedging and income strategies are available
Why Swan Overlay Strategies
The risks to capital are always present. Large drawdowns may impact spending rates and create long recovery times.
How would another major market downturn impact your spending rate or ability to meet obligations?
Utilizing Swan Overlay Strategies
Differentiate and grow your business across market cycles.
Swan Overlay Strategies can be used to:
- Manage volatility in underlying portfolios
- Hedge existing positions
- Reduce impact of market drawdowns
- Enhance portfolio returns
Swan Overlay Advantages
With the risks in marketplace mounting, there is increased interest risk-managed strategies among investors and the professional advisor and money manager communities.
Swan is large enough to provide substantial expertise and resources, yet small enough to remain nimble to execute strategies and customize account management.
Feel free to contact our team regarding various customization and implementations of the Swan Defined Risk Overlay solutions.