The IPS Bear Strategy is designed as an overlay on top of a portfolio which, based on detailed regression analysis, has shown to deliver a downside Beta of -1.74 and an upside Beta of -0.30. This means that on average, when the market is down -10%, the overlay will be up +17%, and when the market is up 10%, the strategy will be down -3%. This rules-based overlay should deliver structural alpha when added to a portfolio framework.

By adding 20% of notional exposure to a long equity portfolio, the strategy reduces portfolio drawdown and substantially outperforms a 60%/40% stock/bond allocation on the upside as well as the downside.

DISCLAIMER: The information on this website should not be misconstrued as an offer to buy or sell, or a solicitation to buy or sell securities. Any historical, non-hypothetical performance contained within this website is representative of net-of-fees performance. The past performance of any investment(s) does not necessarily indicate the future performance of any investment(s). No client, current or prospective, should assume the future performance of their investments will be profitable based on the historical performance. All investments have the potential for profit and the potential risk of loss. Changes in investment strategies, contributions or withdrawals may cause the performance results of one’s portfolio to differ materially from the reported composite performance. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. One should always consult an investment advisor before making any investment decisions.
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