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Historically delivering high returns with less risk.

The Swan Defined Risk Strategy is an absolute-return, market-neutral investment strategy designed to protect investments in down markets, to generate income in down, flat and up markets, and to maximize upside participation in bull markets. This combination of decreased risk and increased returns makes the Defined Risk Strategy the preferred core investment strategy for wealth advisors.

In the 1990s, large investment firms embraced the buy-and-hold, asset diversification model of investing. Profit margins were high, necessitating little change in approach. In the meantime, smaller, more agile firms—like Swan Wealth Advisors—were innovating to bring the investment world the next generation of strategic fiscal thinking. Enter the risk-minimizing Swan Defined Risk Strategy.

How it works.
The Defined Risk Strategy purchases shares in a broad-based stock market index and then hedges or insures those shares with long-term put options. The investment strategy also allows for positive returns over a wide range of market conditions through an advanced and actively managed option-income program. The Defined Risk Strategy components (85-90% equity + 10-15% options-hedge + options income) have been developed and fine-tuned since 1997 for maximum effectiveness.

Advantages:

  • Designed to generate significant positive returns over time, on an absolute and risk-adjusted basis, in nearly any market conditions.
  • Remains independent of market timing and stock selection
  • Helps protect client equity in large market downturns
  • Complements asset allocation and other traditional investment strategies
  • Provides diversification through multiple components tactically designed and built to complement each other across the entire range of market conditions
  • Remains liquid with no lock-up periods
  • Works equally well for separately managed accounts and the Swan Defined Risk Fund