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Products

Buy & Hedge Investments

Reduce Volatility, Maximize Gains

When it comes to your long-term growth, playing defense doesn’t mean you can’t score. ZEGA’s own Buy and Hedge strategy reduces the risk of loss without minimizing returns. That’s because hedging allows for the best of both worlds – a limitation on stock market risk and a healthy return rate you’ve come to expect of your core holdings during up years.


Protect Your Prime Earning Years

Investors at any age can benefit from the Buy and Hedge approach, but ZEGA knows this strategy is most beneficial to those entering into their retirement years. With less earning years ahead of them, these established investors are most prone to the devastation of a market downturn. By creating a comfortable cushion for your investments, we’re making sure your golden years stay golden.

Buy & Hedge Options

Whether you’re establishing yourself as a serious investor at 35 or looking to preserve your peace of mind at 50, we’ve got buy and hedge options to fit your style and risk profile. Choose from our retirement or classic options to find the best choice for you and your investments.

Learn More About Our Different Buy & Hedge Strategies

Retirement
Classic

Performance

Buy & Hedge Master Composite

as of 07/31/2019MTDYTD1 Year3 Year5 YearITD
Buy & Hedge Net*0.77%12.63%3.25%7.77%5.76%9.15%
Bench (S&P 500)1.44%20.25%7.99%13.36%11.35%


Buy & Hedge Retirement

as of 07/31/2019
MTDYTD1 Year3 Year5 YearITD
Buy & Hedge Net*0.69%10.99%2.65%6.95%5.16%8.27%
Bench (S&P 500)1.44%20.25%7.99%13.36%11.35%


Buy & Hedge Classic

as of 07/31/2019
MTDYTD1 Year3 Year5 YearITD
Buy & Hedge – Net*1.54%13.54%4.37%9.01%-6.70%
Bench (S&P 500)1.44%20.25%7.99%13.36%-


Hedged Equity

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 and Buy & Hedge Retirement 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 jay.pestrichelli@zegafinancial.com.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio.

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. Employee accounts do not pay advisory fees, so the returns illustrated for the strategy are higher than they would be if employee accounts paid similar fees.