Overview of SVG Strategies
|Target Annual Return||Target AnnualVolatility||Target Max DrawdownPeak to Trough|
|*** Low Volatility Large-Cap||12%||9%||-11%|
|*** Preferred Income||11%||8%||-6%|
|*** Alternative Growth||38%||25%||-13%|
Low Vol Large Cap
This strategy seeks to mimic the return of large cap equities while minimizing day to day volatility. We accomplish this via actively managed positions in S&P 500 options hedged via our SVIX component. We recommend this strategy to clients with a medium risk tolerance who are seeking growth.
For clients primarily interested in generating income from their investments we provide the preferred shares strategy. Preferred shares are similar to common stock in that they represent fractional ownership in a company. However, much like a bondholder, the investor receives coupon payments as a preferred shareholder by receiving regularly scheduled dividends of a fixed amount. Preferred shareholders must also be made whole before common shareholders in the event of a bankruptcy or default. Our strategy owns a diversified basket of preferred shares and actively hedges systemic risk to provide a steady stream of income. We recommend this strategy to clients with a low risk tolerance seeking income of higher returns than high yield fixed income.
For clients seeking high absolute returns with little correlation to the broad market we provide an alternative growth strategy. This strategy uses our proprietary, in-house models to arbitrage options and futures. We only recommend this strategy to clients with an exceptionally high risk tolerance and that can stick with the strategy for at least a two year period. Having said that, risk adjusted returns, meaning annual Sharpe and Sortino ratios are far superior than any of our strategies and far exceed risk adjusted returns of the S&P 500.
SVG attempts to look at concentrated stock positions and/or diversified equity investments to create a risk factor to the S&P 500 index. Using our live real-time tools to analyze risk comparisons, SVG uses volatility dampening tools either through actively managed covered call strategies or use of SVIX to generate lower peak-to-trough draw downs on an investor’s assets and create less volatility in the portfolio while attempting to maintain returns.
Fixed Income Total Return Strategies
With US treasury yields at historic lower rates, SVG created a Treasury Yield Enhancement strategy using options to define price points in the bond market that are more suitable to own while generating income waiting for such price points to be reached. The strategy is currently up over 6% ytd and the goal is to continue to generate returns that equal or better current yields without being subject to initial downturn price movement in bonds should yields rise.
Gold Strategic Covered Call
Working with Sabrient Systems for their macro economic analytical tools, SVG has devised a more cost effective means to invest in Gold. The strategy aims to hold traditional buy and hold Gold positions but create potentially better risk/reward investment strategies than buy and hold of Gold only by generating income on Gold positions using covered calls based on macro economic and volatility factors in the commodity. SVG currently has been running live trading for 2 months and has 8 years of back tested data to support a means of achieving lower peak to trough draw downs on investment in Gold along with less volatility while exceeding traditional buy and hold returns for the last 2 years.
TR/Sabrient Institutional Long/Short
Thomson Reuters back tested results with a 10 year track record of front loaded data has created better returns than the Barclays long/short index. The methodology uses Sabrient System’s analytics to pair their top 50 ranked stocks as long against their 50 bottom ranked stocks to generate non-correlated returns to the S&P 500 index.
**Each strategy is back tested over the last 3 years and assumes clients are entered into positions based on daily closing prices. Our advisory has the ability to actively manage each client and personalize their portfolio, thus returns do not guarentee future returns and do not suggest a real portfolio. All returns, volatility, and drawdowns are only estimated based on back tests. Investing in options, futures, stocks, and bonds has significant risk. Investors are encouraged to use caution when deciding to invest in each strategy.