With over 35 years of experience in the industry and an impressive risk management track record, Dominick Paoloni is highly sought after as a speaker, educator, and money manager.  A published author, Dominick is frequently asked for hedging advice.  As there is no one-size-fits-all strategy to help clients and advisors manage risk and grow wealth while protecting against the downside, IPS offers complimentary portfolio consulting.

IPS works with advisors to understand their goals and risk tolerances and develop hedging strategies to address their specific needs.  With IPS’ expertise in the use of options to protect wealth, we can help you and your clients find optimal solutions.

When conducting portfolio reviews, Dominick is assisted by an impressive team led by Head Trader Patrick Hennessy and Quant Analyst Mahdi Mahjoub.  Patrick, who is a Chartered Market Technician, heads the IPS trading team and utilizes his deep understanding of both options and financial markets in analyzing and mitigating risk.  Mahdi, who has a Master of Finance and a B.S. in Mechanical Engineering, supports Dominick and Pat’s work by performing detailed regression analyses of various hedging strategies applied to specific portfolios.

Please contact us if you would like us to conduct a complimentary risk analysis of your portfolio
and make preliminary recommendations
of how we can add optionality to reduce your risk.

Before starting the current IPS suite of hedging programs, Dominick ran a target risk GIPS SMA.  Although the results were impressive, Dominick still was not satisfied given the inherent limitations presented by Modern Portfolio Theory.  As his approach evolved, he found that the most effective way to manage risk was to define it through the mathematical certainty provided by options. 

Traditional diversification can fail when stock and bond markets collapse simultaneously.  The suite of IPS hedging solutions that Dominick and his team have developed protect against this scenario.

The centerpiece of IPS’ hedging programs, the Absolute Return Strategy has consistently shown superior risk-adjusted returns and is designed to always capture a significant percentage of market gains while always protecting against the downside.  It shows how IPS is able to utilize options to achieve an asymmetric return profile, which is extremely powerful over time.

A long volatility strategy which is available as a mutual fund (IPSAX), the ARS is an excellent portfolio diversifier and is 100% rules-based, avoiding the pitfalls of attempting to predict or time the market.

IPS Defined Outcome Investments are innovative investment products which allow clients to achieve significant exposure to an asset class while mitigating much of the downside risk associated with that exposure.  By using only exchange traded products we are able to ensure liquidity and flexibility in these short-term vehicles, which can be customized for specific goals and risk profiles.  Low cost and historically extremely reliable, Defined Outcome Investments are powerful options for reducing and defining risk while adding excellent diversification to a portfolio.

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 is designed to deliver structural alpha when added to a portfolio framework.

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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