Alpha is a popular buzzword applied to all kinds of investment strategies that aim to “beat the market”. You prove your worth as an investment manager by besting the performance of a broad market index like the S&P 500. But that means filling a portfolio with hot stock picks, or actively traded sector funds, or…
Regardless of the innovative analytics or AI used, you’re still trying to predict the future. You’ve lost the safety play of investing in the highly diversified broad market.
At ZEGA, we believe in the sanctity of the broad market. We also believe in giving aggressive investors the opportunity to beat the broad market they’re invested in. That’s why we created ZUOM: The ZEGA Ultra Opportunity Model.
ZUOM seeks to deliver alpha over the total return of the S&P 500 without using margin (Available for IRA’s). We utilize the inherent leverage of long-dated SPY call options. We pay the call premiums by simultaneously producing cash in the account from deep, out-of-the-money credit spreads on indices. The combination of options trading, volatility harvesting, and hedging, produces what some might call the “new 60/40”.
As with any innovative product, ZUOM benefits from a more detailed discussion. And we’ll gladly walk you (and/or your clients) thru this highly visible, highly liquid SMA-based strategy. To learn more, make an appointment.
But for now, note that innovative approaches to classic broad market investing, like ZUOM, can, and do, outperform innovative stock pickers like Cathie Wood.