In my 30+ years of professionally managing money and building portfolios, I have found that all traditional financial models, including Markowitz, Bootstraps, Johnson Distribution, and G.A.R.C.H, have fatal flaws that become very evident in unstable, volatile markets. It has been my life’s journey to define modeling tools that provide stable covariance through all types of market conditions. This journey has led me to the discovery that exchange-traded options provide the most powerful, efficient way to solve the modeling dilemma, which has enabled me to help my clients consistently grow their money regardless of market volatility.
As with any tool, one must learn how to use and apply options effectively and efficiently. To successfully harness options’ power as an unparalleled risk management tool requires expertise and diligence. At IPS, we have devoted ourselves to this task, and my experienced quant team and I have built a suite of low-cost hedging tools appropriate for pensions, endowments, advisors, and individual investors. Our unique suite of hedging products has proven to define and reduce downside risk, always protecting against the downside, while simultaneously allowing our clients to participate in the market’s upside opportunities. Thus our mantra: Always Invested, Always Protected.