top of page

S&P Index Enhancement Protection Strategy

This strategy is designed for investors with a long-term horizon as a holistic equity index investment protected for severe market downturns.  Sophisticated executed algorithms systemically reduce hedging costs, identify and take advantage of market derivative mispricing. 

The strategy calls for allocating 3.23% of the overall equity investment to the hedging component for optimal performance.  High returns have been generated historically during virtually all severe drawdowns resulting in a profit producing hedge in periods of extreme market volatility.

  • Actual S&P Enhancement Strategy yields have been audited by E&Y and outperformed the S&P by 4.3% annually on average for close to 12 years.

  • The strategy produced outsized returns during virtually all extreme market drawdowns – exactly when portfolio managers need to protect their clients and stand out from the competition.


  • A key holistic benefit is a profit producing hedge structure that gives portfolio managers the confidence to allocate significantly more of their portfolio to publicly traded equities versus continuing the course of investing in low-yielding fixed income products.

  • The downside protection may reduce capital requirements for an insurance company or pension plan under Solvency II.

  • Using an S&P index correction of 20% as an example, the effect of the DBG enhancement historically resulted in a yield of 877.5% net of fees for the Capital Invested (i.e. without the combination of the S&P). This equates to a yield of 29.25% net of fees for the full S&P-enhanced asset protected portfolio. 

  • DBG’s underlying strategy metrics based purely on capital invested would put it on top of most hedge fund rankings based on average annual returns if it were a stand-alone strategy

Alternative Hedging Methods.png

Contact Us:


+1 (212) 826-7053


bottom of page