Hedged Stock Portfolios - 21st Century Investing

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A stock-specific example of hedge structures we recommended for clients is posted in our Insights section for Celsius Beverage, which is summarized below, and details are available upon request. To see more than 60 additional stock-specific hedge structures, see our Portfolio Construction page.

You may be asking, why bother to hedge stock investments? Stocks ultimately go up over the long-term, right? That is true, though market volatility constrains long term annual returns to approximately 10% per year. That is because the stock market falls approximately 3 out of every 10 years, with the average decline in a down year being nearly 15%. 

We are in the age of progress and so much has changed over the past quarter century…except for how individual investor stock portfolios are invested. 

Think about how much life has evolved since the turn of the century because of technology. Now ask yourself, how much have individual investor portfolio investment structures changed since then? 

Why are most stock portfolios predominantly invested the same way as 25 years ago? Has there been lack of innovation? No. Actually, financial instrument innovation has accelerated greatly, particularly with publicly traded equity hedging instruments during the early 2020s.

Bespoke TFC (Twenty-First Century) Capital provides a clearly articulated differentiated means of investing. Please continue to our Investment Process and Portfolio Construction pages, or return to Service & Fees.