Unlimited Potential / Limited Risk

Swan Consulting, Inc. is a registered investment advisor that specializes in index-based strategies that allow investors to participate in the upward price movement in a particular stock index while reducing most of the downside risk.

Swan Consulting, Inc. was founded to provide investment management services not available to most investors.  Our purpose is to provide superior risk adjusted returns via various hedging techniques.

Due to the recent proliferation of investment products, the individual investor can finally employ risk-reduction techniques to overcome the pitfalls of traditional investment strategies.  The competitive advantage that large institutional investors have enjoyed over the years is quickly vanishing.  It is no longer necessary for individual investors to remain at the mercy of institutional investors, money managers, or mutual funds.  The strategies we employ may revolutionize your approach to investing and maintaining your portfolio.

Our focus is to protect and accumulate wealth for our clients.  To do that, we are guided by two core principals that Warren Buffet espouses:

#1 Never lose money, and
#2 Don't forget rule # 1.

Never Lose Money

It seems simple, but is by far one of the most challenging endeavors an investor can undertake.

Our goal is to provide superior customer service by delivering defined risk strategies that allow our clients to grow their wealth while protecting their capital.

"The Strategy" provides superior risk management techniques than traditional asset allocation. Our view of modern portfolio theory via asset allocation is as follows:

"It is important to note that the great claim of asset allocation is that risk can be reduced by diversifying over several broad asset classes (i.e. stocks, bonds, cash and real estate) without a similar reduction in return. However, the risk reduction is strictly theoretical (typically based upon relationships that existed over a particular period with no guarantee that these same relationships will continue in the future). This is the crux of where asset allocation or modern portfolio theory breaks down. Risk is not defined; instead it is merely expressed in historical standards."  - Randy Swan 1997

The DRS is designed to define risk instead of merely expressing it in historical standards.  Summary features of the DRS include:

Upside Participation in the Equity Markets

The portfolio performance is linked to the upside performance of the S&P 500.  Since July 1997, the annualized performance of "the Strategy" has been 11.14% before fees.

Defined Risk Upon Initiation of Investment

"The Strategy" caps downside risk and typically even eliminates this risk over a one-year period.  Note that we are not claiming an 80% success rate, which provides no assurance of future success, but rather a definable risk that is determined prior to investing.

Success is NOT dependent upon predictions

"The Strategy" does not rely on market timing, stock selection or crystal balls to be successful.  Strategy participants not only DO NOT CARE about market correction, but welcome it.  You will actually welcome a market crash since you will be able to PROFIT, not merely recover, from a rebound after a substantial market decline.  This is possible because your investment will be protected through this decline.

Protect Future Unrealized Gains

After initial investment, adjusting your guaranteed sale price can protect future unrealized gains.

Transaction and Tax Efficient

The primary component of the portfolio is never sold. and therefore minimizes tax consequences.  This features is in stark contrast to most mutual funds that  annually liquidate up to 50% of their portfolio.