What are the portfolio characteristics (number of holdings, trading frequency, etc.)?
Accounts of less than $100K may hold ten or fewer positions with corresponding collars, while very large accounts may hold more than twenty stocks. A significant percentage of an account may be in exchange traded funds (ETFs) such as SPY (S&P 500) if attractive collars for the ETFs are available. Individual stock holdings will mostly be in large cap stocks diversified by economic sector with no sector typically representing more than 25% of the total weight. Also, to smooth returns of the overall portfolio, stocks with attractive collars and low correlation to the equity market (such as gold stocks) will often be included. Our approach is an investment strategy rather than trading strategy, with most stocks held for at least twelve months. Stocks when acquired are immediately wrapped with collars of usually more than one year in length, and are typically held until the collar expires.
A significant percentage of an account may be in exchange traded funds (ETFs) such as SPY (S&P 500) if attractive collars for the ETFs are available. Individual stock holdings will mostly be in large cap stocks diversified by economic sector with no sector typically representing more than 25% of the total weight. Also, to smooth returns of the overall portfolio, stocks with attractive collars and low correlation to the equity market (such as gold stocks) will often be included. Our approach is an investment strategy rather than trading strategy, with most stocks held for at least twelve months. Stocks when acquired are immediately wrapped with collars of usually more than one year in length, and are typically held until the collar expires.
