Buy & Hedge

Portfolio Hedging & Buffered Strategies
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 as separately managed account
  • ZEGA operates experienced hedging program
  • Branded as Buy & Hedge or ZBIG: ZEGA Buffered Index Growth

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

 as of 03/31/2017 MTD QTD YTD 1 Year 3 Year 5 Year ITD
Classic – Net* -0.75% 4.12% 4.12% 11.4% 5.2% 8.09% 9.10%
Retirement – Net* -0.47% 5.23% 5.23% 11.4% 3.2% 6.74% 9.58%
S&P 500 0.12% 6.07% 6.07% 17.2% 10.4% 13.3% 13.6%


ZEGA Buffered Index Growth

 as of 03/31/2017 MTD QTD YTD 1 Year 3 Year 5 Year ITD**
ZBIG Leveraged – Net* -0.42% 5.76% 5.76% na na na 14%
ZBIG IRA – Net* -0.43% 3.70% 3.70% na na na 10.1%
ZBIG Standard – Net* -0.38% 4.59% 4.59% na na na 12.2%
*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.
** Inception to date (ITD) for the ZBIG returns are from the following dates: ZBIG Leveraged: 7/1/2016; ZBIG IRA: 10/1/2016; ZBIG Standard: 11/1/2016

 

 

 Tearsheet 

 Presentation

Media

 Buy & Hedge Classic

Document1_Blue browser_blue  BH Book

 Buy & Hedge Retirement

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Hedging Explained

 ZBIG Leveraged

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 ZBIG IRA

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 ZBIG Standard

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CONTACT US

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

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  Disclosures  |  Copyright 2016 ZEGA Financial. All rights reserved.

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