Hedged Strategy

Hedged Strategy

The AP US Large-Cap Hedged 1.5X Shares

It is advisable to use the strategy if you want to protect your money, avoid big drops and at the same time achieve a stimulating return.

Aims to outperform the S&P 500 in risk-adjusted return, achieving above-average returns and low volatility.

30.41%

Lower max drawdown than S&P 500

4.71%

Higher average annual return than S&P 500
Advantages of this strategy
Low drawdown
High performance
An average annual return of 13.75 %
The maximum decline since 2008 was 17.1 %
Balanced diversification among the US market
Based on machine learning and artificial intelligence
S&P 500 AP Hedged
Initial capital (1/31/2008) $ 100 000 $ 100 000
Final capital (11/30/2021) $ 331 290.11 $ 594 325.86
CAGR 9.04% 13.75%
Max drawdown -47.51% -17.10%

Hedged strategy for investors who seek stability

Performance comparison of our AP Hedged Strategy with the S&P 500

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Drawdowns comparison of our AP Hedged Strategy with the S&P 500

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Empirical research in statistics, machine learning and artificial intelligence

Based on these tools, we can automatically rate stocks from the most undervalued to the most overvalued and determine which stocks shall become a part of the strategy. The strategy involves buying long and short positions using leverage of 1.5. The portfolio is rebalanced at regular monthly intervals. This strategy works best with brokers enabling the trading of fractional shares.

The stated results do not take into account stock exchange fees and taxes. When applying the strategy at Interactive Brokers, the fees are approximately 600 USD per year for non-US residents. No fees apply to US residents. If the account is not held in USD, the fee for using leverage is about 0.6% per year.