Our Hedged Equity Strategy is a purpose-built strategy that seeks to provide exposure to the equity markets with less risk by limiting drawdowns during market downturns.
Aims to provide capital appreciation by combining a domestic long equity core position with risk mitigation option strategies.
Why This Strategy?
Four-person investment team has decades of experience in risk mitigation, volatility and correlation management, with deep institutional expertise helping clients successfully manage risk across market regimes.
Hedged Equity aims to provide a single solution for maintaining equity exposure, managing potential market volatility, and mitigating drawdowns. Our approach lets investors remain consistently hedged, allowing for faster recovery from market selloffs.
Our approach pairs S&P 500 exposure with a consistent risk mitigation overlay to over-protect the first 2 standard deviations (generally -2 to -7%) to the downside. Our ability to make active market volatility adjustments, allows our protection to continue through extended market drawdowns.
This paper is an analysis of equity volatility and its impact on portfolio correlation and diversification. By examining a standard institutional asset allocation against a Hedged Equity approach, our research has found that correlation management is key to accessing the benefits of diversification.