After back-to-back banner years in 2023 and 2024 for the S&P 500, 2025 has presented a stark contrast. Rising trade tensions, persistent inflation, and renewed recession fears have created a more challenging market environment.
At its core, a Defined Risk Strategy is built for exactly these moments—helping clients stay invested by smoothing volatility and minimizing downside risk.
While the past couple of years made it harder to highlight the value proposition of built-in portfolio hedges, this patient, disciplined process is once again doing what it’s designed to do—help protect capital during drawdowns.
Year to date this hedged portfolio is -2.59% versus the S&P 500 at -8.62%. Year over year the portfolio is +6.89% while the S&P 500 has given up most of its 2024 gain and now stands at +5.18%.