ZEGA Financials’ Hedged Equity Comparison

by | Dec 14, 2017 | Buy & Hedge, Hedging, S&P 500/SPX, Technical Analysis

Each month we regularly report performance on this blog. But what we don’t share that often is how our strategies are faring against our peers.  It may require a little explanation, but here is how our Buy and Hedge Master Composite returns are doing compared to other hedged equity products out in the market place today.

ZEGA scores well in the return category as we lead all our peers in just about every time frame. Naturally hedged equity has underperformed its benchmark, the S&P 500, but that is the cost of being protected and is par for the course.

However, looking at the volatility or risk of the portfolio as defined by standard deviation, ZEGA is on the high end. But it’s actually not bad as we still post a standard deviation below that of the benchmark. Having less risk is the whole point of being hedged, after all.

Lastly is the Sharpe ratio. This is a common metric used to measure risk-adjusted returns. It basically tells us if the return was worth the risk. The higher the number, the better. Once again, ZEGA places well amongst our peers and even better than the benchmark.

The Buy and Hedge Master Composite is made up of our Buy & Hedge Retirement, Buy and Hedge Classic, and ZBIG strategies. If you know of any other hedged equity managers you’d like us to include in this list, let us know.


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