A CO Shop Spreads Its Wings With a 5th MF
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Wednesday, January 30, 2019

A CO Shop Spreads Its Wings With a 5th MF

An ETF strategist is launching its fifth mutual fund, and the chief is hiring to expand his team.

Randall William Swan
Swan Global Investments
Founder, CEO
Last month the team at Durango, Colorado-based Swan Global Investments quietly rolled out the Swan Defined Risk Growth Fund. Puerto Rico-based Randy Swan, Swan Global founder and lead PM, describes the new fund as a "more aggressive" take on a different strategy; both use options to try to hedge out market risk (using Swan Global's proprietary Defined Risk Strategy, i.e. DRS), while still participating in the upside of the S&P 500. The Swan Global team aims to truncate the market's drops by selling options for a profit during those swoons and reinvesting in the market (via ETFs).

"We're kind of geared towards trying to protect against really large bear markets," Swan tells MFWire. "We want to give our clients choices based on their risk tolerance."

"Over a full market cycle, we think that the hedging pays for itself," Swan adds.

22-year-old Swan Global now has 43 people working with $4.1 billion in AUM, Swan says, and they work with RIAs big and small. The new fund comes in both institutional (SDAIX) and A (SDAAX) share flavors.

Last year the Swan Global team rolled out a solutions program for small RIAs (those with $100 million or less in client assets) to outsource their chief investment officer function to Swan Global. And watch for Swan to expand his team to ramp his efforts in more channels, such as retirement plans and banks. (Our sister publication, 401kWire, reports on Swan's DC I-O interest.)

"We're eventually looking to hire a couple of business development people in certain areas," Swan says.

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