Swan Investment Philosophy

We believe that invest­ment gains are only rel­e­vant if large loss­es are avoid­ed. What is the point of large returns if most of it is lost in the next bear mar­ket?

The market’s unpre­dictabil­i­ty makes mar­ket tim­ing and stock pick­ing dif­fi­cult tasks to accom­plish, so we believe reduc­ing down­side risk is cru­cial to cre­at­ing wealth.

We Believe…

Therefore, We…

It is dif­fi­cult to con­sis­tent­ly and suc­cess­ful­ly exe­cute mar­ket-tim­ing strate­gies   Remain invest­ed in the stock mar­ket at all times
It is dif­fi­cult to select stocks that will con­sis­tent­ly out­per­form the mar­ket   Invest in index-based ETFs
Pur­su­ing returns in a vari­ety of mar­ket con­di­tions is crit­i­cal to long-term suc­cess  → Seek to gen­er­ate mar­ket-neu­tral income by buy­ing and sell­ing puts and calls
The key to long-term wealth cre­ation is to min­i­mize down­side risk   Always hedge by buy­ing puts to pro­tect clients dur­ing large mar­ket down­turns
It is impor­tant to con­trol risk in every phase of a mar­ket cycle   Fol­low a rules-based approach to remove emo­tions from the process
Tra­di­tion­al asset allo­ca­tion focus­es on bal­anc­ing risk, but this does not effec­tive­ly reduce risk. Defin­ing and reduc­ing invest­ment risk, not just bal­anc­ing it, are essen­tial steps to pro­tect wealth and, more impor­tant­ly, to gen­er­ate wealth in a more con­sis­tent and more pre­dictable way.
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