Buy & HedgePortfolio Hedging & Buffered Strategies
What is it?
- 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
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
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
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 Master Composite
|as of 06/30/2017||MTD||QTD||YTD||1 Year||3 Year||5 Year||ITD|
|Buy & Hedge – Net||0.2%||2.4%||7.5%||11.3%||4.3%||9.0%||9.5%|
|Bench (S&P 500)||0.6%||3.1%||9.3%||17.9%||9.6%||14.6%||7.7%|
Note: Returns are expressed in US Dollars net of fees.
ZEGA Financial is a registered investment adviser and investment manager that specializes in derivatives. ZEGA is a separate accounts manager and all returns expressed herein are solely from the separate accounts business within ZEGA.
This report is supplemental information. The Buy & Hedge Classic, Buy & Hedge Retirement, and the three ZBIG strategies are all a sub-composites to the Hedged Equity Master Composite that ZEGA maintains. The data in this supplemental report is for the accounts that were managed in accordance with the guidelines consistent with each of these sub-composites as described in the description tab on this page. All of the portfolios included in the returns reported herein are also part of the Hedged Equity Master Composite.
Hedged Equity Master Composite includes all Hedged Equity strategies and accounts managed by ZEGA prior to and since ZEGA’s inception. To qualify as a Hedged Equity strategy, the account must be invested with its assets in at least 70% in a diversified portfolio of Equities, Equity ETFs, or Equity indexes. The value is based on the notional dollars controlled. The portfolio must also have a hedge built in that limits the downside for the majority of the notional equity controlled. All portfolios that are at least 70% allocated to this strategy are included. The benchmark is the S&P 500. The benchmark is THE S&P 500. The S&P 500 Index is a collection of 500 of the largest publicly traded US Equity large cap companies.
ZEGA Financial claims compliance with the Global Investment Performance Standards (GIPS). To receive a full list of composite descriptions of ZEGA Financial and/or a presentation that complies with the GIPS standards, contact Jay Pestrichelli at 1-800-380-9342, ext 101 or firstname.lastname@example.org.
All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance of any of the model portfolios will be comparable to past performance.
These results should not be viewed as indicative of the advisor’s skill. The prior performance figures indicated herein represent portfolio performance for only a short time period, and may not be indicative of the returns or volatility each portfolio will generate over a long time period. The performance presented should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. The actual results for the comparable periods would also have varied from the presented results based upon the timing of contributions and withdrawals from individual client accounts. The performance figures contained herein should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the asset allocation strategists in developing their model portfolios, and should be accompanied or preceded by the model.
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment’s volatility.