Tweet

Clothier Springs Capital Management Makes INFORMA Top Guns--Again

Posted by: Tom McKeon on August 20, 2016

blog image

The methodical, rules-based capture of option premium is what drove our structurALPHA Large Cap Buy-Write strategy.

For the second quarter in a row, the Clothier Springs structurALPHA U.S. Large Cap Buy-Write earned a spot on the PSN Top Guns ranking of investment strategies, within the Managed ETF category.


Our structurALPHA U.S. Large Cap Buy-Write is a rules-based strategy that hedges a long exposure in the S&P 500 with a short, near-month, at-the-money call option. The hedge is rolled each month at expiration to the next month’s expiration. It is modeled on the CBOE S&P 500 Buy-Write (BXM).

 

Top Guns Chart

 


The methodical capture of option premium from the monthly sale of the option hedge is a new source of portfolio total return, and also reduces overall portfolio risk. Capturing this additional source of return is what helped our strategy perform so well in a flat equity market environment. Our strategy ranked third for the one-year period ending 6-30-2016.

 

See the press release: Clothier Springs Makes Top Guns


Recent Posts

Cryptocurrencies, Intrinsic Value and Greater Fools

The Pain in Active Management Land Must Be Unbearable…

PremiumPoints 2Q-2017 Issue

Asset Allocation vs. Stockpicking: No Contest

Options Update: Getting Paid to Wake Up

PremiumPoints 1Q-2017

ETFs Ascendant

The 21 Questions You’re Going to Need to Ask About Investment Fees

Review and Outlook 2017

Facts, Conclusions and Blind Spots

Post-Election Global Returns

Clothier Springs Capital Management Makes INFORMA Top Guns--Again

Back to Blog Home Page