Thought Leadership
Volatility Reduction in Focus
For most investors, it’s not just the destination that matters … but the journey. Equities are essential for growth, but the sharp, periodic losses that inevitably come with the asset class can have severe consequences for clients at any stage of the investment continuum. For these reasons, investors need strategies that offer equity market participation, but whose value-add centers on volatility reduction.
The following primer explores the philosophy and approach underpinning the Sentry Hedged Growth Strategy, a strategy that incorporates broad-based Exchange Traded Funds (ETFs) to achieve market-like returns, and relies on liquid options – without leverage – to limit downside capture and enhance yield. By taking a less complicated approach to equity market participation and options markets, we believe the strategy can serve as an essential component of most investor portfolios.
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