'Always Invested, Always Hedged' is our unique time-tested investing framework. It provides investors a unique blend of passive investing and active risk management.
Market risk is too big a threat to be dealt with passively, so we hedge it. Our always invested, always hedged approach seeks to keep investors passively invested in the markets with active risk management to provide a less volatile ride.
We believe it's a better "buy and hold" strategy.
Always Invested
Stock markets tend to go up over time, and investors need the upside potential of stock markets to reach long-term goals, so we remain always invested.
However, the trouble with purely passive buy-and-hold is that volatility or unstable markets make it hard for investors to know when to buy and difficult for them to hold on, often leading investors to leave the markets at the worst possible times. This may result in longer recoveries and missed growth opportunities.
Always Hedged
Severe losses and long recovery times can derail investors from their goals, so we remain always hedged against market risk.
By definition, market risk “cannot be eliminated through diversification, though it can be hedged against.”
We are always hedged with long-term put option, also know as LEAPs, which have meaningful benefits to the long-term investor.
With our always hedged approach, we seek to reduce volatility and limit the impact of bear markets, which help investors remain always invested so they don't miss out out on rapid recoveries.