US Equity - Managed Volatility Strategy


Investment Objective

The objective of the strategy is to provide downside protection without scarifying long-term capital growth. By lowering volatility and more importantly, exposition to significant market drawdown, an investor could achieve better risk-adjusted performance over the long term and experience reasonable capital growth. Avoiding loss with no growth of capital is a luxury that few investors can afford.

Portfolio Construction

To achieve the performance objective, we use 3 investment techniques with a proven track record at the industry level. We enhance each approach to provide a strategy that significantly limits losses during stock market corrections while allowing long-term capital growth.

The strategy is a combination of a portfolio of stocks with minimal variance, a systematic option writing strategy and a proprietary "Trend Following" model. These three components reduce volatility and exposure to bear markets.

The three sub-portfolios have significant academic support and have been used in financial markets for many years. 




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