Hedged Equity
Constructs a multi-style U.S. hedged equity portfolio balanced across two complementary alternative mutual funds employing disciplined and diversified hedging strategies.
Why Multi-Style Diversification?
Seeks to achieve the majority of equity returns while also reducing downside risk in falling markets.
JPMorgan — Hedged Equity Large Cap (JHEQX)
Invests in a portfolio of U.S. large cap stocks while employing a disciplined options strategy that seeks to reduce downside risk in falling markets for the first 5-20%. Seeks to provide a majority of the S&P 500 Index’s returns with less volatility and limited downside risk.
Longboard — Hedged Equity Small/Mid Cap (LONGX)
Invests in a portfolio of quality U.S. small and mid cap stocks while employing a disciplined hedging strategy that seeks to reduce downside risk in falling markets. Most hedged in market declines exceeding >15%. Seeks to provide returns that exceed the Russell 2000 index with less volatility and limited downside risk.
Diversification Smooths Style Performance Cycles
Annual returns ranking of the Hedged Equity blend and its components, 4/1/2015 - 12/31/2023
