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Swan Overlay Strategies2018-03-22T17:29:27+00:00

The Swan Overlay Strategies

Defining Risk — Enhancing Portfolios

With yields low and the bull mar­ket in glob­al equi­ties long in the tooth, advi­sors and insti­tu­tions need new ways to seek income, risk-reduc­tion with­out trig­ger­ing cap­i­tal gains lia­bil­i­ties, as well as, new poten­tial sources of alpha and return.

Swan Over­lay Strate­gies are an invest­ment solu­tion designed around an exist­ing port­fo­lio to cre­ate a cus­tomized invest­ment expe­ri­ence.

Our option over­lay strate­gies seek to enhance tra­di­tion­al invest­ment return streams by pro­vid­ing a port­fo­lio hedge to mit­i­gate port­fo­lio risk and/or to cre­ate addi­tion­al 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 har­vest option pre­mia using options spreads that are active­ly man­aged con­sis­tent with our risk man­age­ment method­ol­o­gy.

The Swan 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.

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