Buy & Hedge

Portfolio Hedging
Good defense can get a team to the Superbowl. Good portfolio defense is intended to get your client to retirement – faster. But some of the old school choices, like allocating a greater portion of assets to bonds, isn’t necessarily the best defense. By hedging equity allocations with options, your clients continue to participate in some market upside while being protected to the downside. We believe hedging will help your clients sleep soundly through sudden market corrections or scary system failures.

What is it?cropped-ZEGA-FINANCIAL-LOGO-SYMBOL.png

  • Offers Hedged US Large Cap Equity Exposure
  • Offered in two versions Classic and Retirement
  • ZEGA operates experienced hedging program

Potential Benefits:

Building Downside Protection in a Portfolio

  • Builds a floor in a client’s portfolio
  • Participates in the majority of market upside
  • Reduces portfolio volatility
  • Structurally designed to reinvest when market has sold off

Portfolio Fit: 

A Core Portfolio Holding

  • For many clients who are at or near retirement, this product is an excellent fit
    • Those clients cannot afford to experience another ‘08/’09 again
    • This strategy builds that protection in an effort to limit that market impact
    • Consider longer life expectancy*
  • For the risk averse client – regardless of age

Risks:

Cost of Hedging May Fluctuate

  • Upside Capture correlated to Broad Equity Gains
  • Cost of Hedging may increase with certain market conditions
  • Income vehicles may adversely affect performance

Buy & Hedge Classic

 as of 12/31/2016 MTD QTD YTD 1 Year 3 Year 5 Year ITD
ZEGA B&H Gross 1.3% 3.4% 7.4% 7.4% 5.7% 10.9% 10.4%
ZEGA B&H Net* 1.2% 3.1% 5.9% 5.9% 4.1% 9.2% 8.7%
S&P 500 2.0% 3.8% 12.0% 12.0% 8.9% 14.7% 14.5%


Buy & Hedge Retirement

 as of 12/31/2016 MTD QTD YTD 1 Year 3 Year 5 Year ITD
ZEGA B&H Gross 1.7% -0.2% 6.9% 6.9% 3.3% 8.6% 10.8%
ZEGA B&H Net* 1.5% -0.6% 5.3% 5.3% 1.8% 7.0% 9.2%
S&P 500 2.0% 3.8% 12.0% 12.0% 8.9% 14.7% 13.3%
*Performance numbers displayed net of fees include a 1.50% fee; this fee is an estimate which reflects both ZEGA’s management fee and the fee charged by the advisor to the client.

 

 Tearsheet 

 Presentation

 Our Book

 Buy & Hedge Classic

 

 

Buy & Hedge Retirement

Document1_Blue

 

Document1_Blue

browser_blue  BH Book

CONTACT US

777 South Flagler Drive Suite 800 West Tower, West Palm Beach, FL 33401 Service@ZEGAFinancial.com

email address:

Enter your email address to subscribe to our mailing list:
Give us a call today!

phone_w 800.380.ZEGA (9342)

linkedin_wtwitter_w

  Disclosures  |  Copyright 2016 ZEGA Financial. All rights reserved.

Check the background of these investment professionals on FINRA's BrokerCheck »