Low volatility - income

This strategy simply holds the SPY ETF which tracks the S&P 500 Index.  We then overlay our hedges against this single position using covered calls and protective puts with an objective of generating positive returns in flat markets and providing downside protection in declining markets.  This strategy is good for tax sensitive clients as the SPY is held over time, generating future long-term capital gains, with current taxable income limited to the profitability of the protective hedges plus dividends paid on the ETF. 

Hedged SPY Overlay

Our Primary Strategies

This strategy is employed for those investors seeking greater current income with lower risk and volatility.  The objective of this strategy is to achieve portfolio income higher than current fixed income yields, without the higher risk associated with the broader equity markets.  This is achieved through investing in more stable securities such as high dividend paying stocks, utility stocks, ETFs, REITs, and MLPs.  We then use covered calls to hedge some of the portfolio risk and to generate additional current income and yield. 

This strategy invests primarily in equity securities, ETFs, fixed income securities, and cash.  Using our proprietary economic model, various inputs such as GDP, inflation, interest rates, and employment, among other factors, are used to manage investment risk by continually rebalancing an investor's portfolio across the various asset classes.  For example, if the model determines that downside risk in the market has increased, we might rebalance an investor's portfolio from 70% stocks, 20% fixed income, and 10% cash to 30% equities, 40% fixed income, and 30% cash.  Conversely, if our model predicts favorable market conditions, an investor's portfolio might be rebalanced up to 100% equities.  This strategy also employs options hedges for downside protection and to generate positive returns in flat markets.  The Global Macro strategy may generate more current taxable income as securities are bought and sold as part of the portfolio rebalancing. 

Global Macro model