Growth, income, preservation, accumulation, inflation protection, risk mitigation, tax minimization: Unique objectives differ for different investors but all come down to some mix of the preceeding objectives.
Market capture, asymmetry, risk-adjusted returns, beta, alpha, drawdowns—the list is long. They are all investment industry metrics and jargon for what every investor desires: more of the good stuff, less of the bad stuff.
The timeless question is however: How does an investor most reliably, efficiently and cost-effectvely earn the returns they require to meet their own unique objectives?
Private investors now have the opportunity to maximize portfolio efficiency and achieve their desired outcome through global asset allocation and diversification, coupled with a structural, rules-based hedge.
Our passive approach to portfolio construction, and our methodical, rules-based approach to hedging combined with our low-cost mission reduces risk and maximizes portfolio efficiency, market capture and client net returns.
The investment component is of course supported and complemented by the services listed below.
Our strategies afford small institutions—with smaller pools of capital—the opportunity to allocate and diversify globally and to include exposures to risk-limited hedged strategies, at very low cost.
The result is a more liquid, transparent, efficient, cost-effective, holistic portfolio with less friction, fewer moving parts and no superfluous layers.
We can be engaged to advise on and manage your entire portfolio or to manage a discrete strategy within your overall allocation.
Advisors working for both private and institutional asset owners can access our innovative, low-cost, liquid and transparent rules-based hedged strategies for their clients.
We work as a sub-advisor through the custodian engaged by the advisor and advisor client. The strategies are implemented through separate accounts registered to each advisor client.
structurALPHA© is our innovative suite of strategies that combine a single-market or multiple-market exposure with a passively implemented, structural option hedge. The result is a suite of strategies that participate fully in equity market returns over the market cycle, with significant and structural reduced-risk characteristics—a direct function of the rules-based hedge.
The premium received from the monthly sale of the call option hedge augments portfolio income and total return, while buffering downside risk.
This simple, methodical, rules-based hedge delivers all of the attractive characteristics of the strategies: enhanced cash flow, outperformance in low-return markets, low beta & volatility, smaller drawdowns, faster recoveries, and positive market capture asymmetry.
Best of all, these desirable characteristics are structural and do not rely on the need for continual portfolio management or trading decisions.
"Our passive approach to portfolio construction, and our methodical, rules-based approach to hedging combined with our low-cost mission reduces risk and maximizes portfolio efficiency, market capture and client net returns."