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Strategy

An Innovative Approach to Managing Downside Risk

A severe market decline can have a devastating effect on your portfolio, making it difficult to recapture losses incurred on long-term savings. Constructing a portfolio using tail risk hedging can help to minimize the impact of adverse market movements. The Hedged Equity Index Option Strategy seeks to outperform the S&P 500 over the long-term, while hedging downside risk with Volatility Index (VIX) options.

Hedged Equity Index Option Strategy

Financial chart 4

The hypothetical returns shown are based on an initial investment of $100,000 on 1/10/2005.
Net of all transaction costs and 2% management fee.

Financial chart 5

We maintain a significant amount of cash which may be invested in US Treasury Securities.

The hypothetical returns shown are based on an initial investment of $100,000 on 1/10/2005.
Net of all transaction costs and 2% management fee.