The Pain Index — Redefining Risk Measurement
Marc Odo, global client portfolio manager at Swan Global, explains the limitations of risk measurements typically used by the market. He describes the ‘pain index,’ which goes farther than standard deviation calculations based on market volatility alone in showing the depth, duration and frequency of investor losses.
Rolling vs. Trailing Returns — Redefining Performance Measurement
Investors tend to overly emphasize short-term returns rather than focusing on consistent results over the long-run, says Marc Odo, a Swan Global client portfolio manager. He says investors should redefine how they look at investing — through a long-term lens.
Using Hedging Strategies to Counteract Inevitable Market Risk
Swan Global Client Portfolio Manager Marc Odo explains how the firm addresses market risks with a hedging strategy to minimize losses. He says Swan Global is mindful the biggest risk to investors is a large market drop, and the firm takes steps to avoid that devastation to an investor’s financial plan.
Swan Global’s Defined Risk Strategy
Swan Global Client Portfolio Manager Marc Odo defines the firm’s perspective on creating an investor portfolio that manages downside risks. He says investors should seek to protect their capital by always being hedged against market events.
Measuring Swan Global’s Performance
Swan Global measures its performance against a target return band — a range of expected return values that takes into account historical outcomes and hedging puts the firm has on, according to Marc Odo, client portfolio manager. He says the strategy’s aim is to deliver consistent annual returns and avoid big losses along the way.
Always Invested and Hedged at Swan Global
Marc Odo, client portfolio manager at Swan Global, describes the firm’s strategy of always being invested and always being hedged in order to reap gains for investors while protecting them against loss. Odo says Swan Global uses longer-dated put options to avoid duress, and always protects the full notional value of the portfolio at all times.