For PMs protecting long-only books
Keep your picks. Hedge the market.
Separate what the market gave you from what your stock selection earned. Hedge the book or single holdings to the beta you choose, and buy protection only when it’s cheap.
Books · same picks, chosen beta
LIVEBook
+4.6%
From the market
+0.0%
From your picks
+4.6%
Illustrative 40-day path. At beta 0 the book earns only if its names beat the market.
320 bps
The minimum a year by which protection-buying equity strategies trailed broad equities, with worse Sharpe ratios. Buying puts on a schedule pays for insurance whatever its price.
Source: Meketa Investment Group, Options-Based Strategies
Protection timing · 12 months
LIVEPut price percentile, by month · highlighted = bought
Purchases
6
Avg cost per buy
72 bps
vs calendar
−33%
Illustrative. Cost in bps of notional protected.
Mispricing · protection
Buy protection when it’s cheap, not on a calendar
Every put and put spread is priced against our own volatility surface. Positive edge flags protection the market is underpricing, so you buy it when it is cheap rather than on a schedule.
- 01Cheap-convexity and tail-hedge families scanned across the universe
- 02Fair value vs market price on every protective structure
- 03Blueprints alert you when protection on a holding turns cheap
Hedge · book or holding
Choose the beta. Get the hedge.
Set a beta target for the whole book or for single holdings. StockAgents proposes the beta, delta and gamma hedges with sector ETFs or the index, re-sized daily or more often when markets move.
- 01Sector ETF hedges keep factor exposure close to your picks
- 02Index hedges are one trade, cheapest to run
- 03Beta now, beta after, and the hedge’s P&L tracked on its own
Hedge monitor · $50M book, beta 1.12
LIVETARGET BETA
HEDGE WITH
WHAT THE HEDGE REMOVES
Your stock picks stay in full. Only the market exposure above the target beta is sold.
Beta now → after
1.12 → 0.50
Beta dollars hedged
$31.2M
Illustrative prices and betas. Proposals only; you decide.
Drawdown · whole book
LIVES&P 500 FALL OVER 10 DAYS
In a rate shock, a 10% fall costs this book
$56,900
SAME FALL, FOUR KINDS OF SHOCK · CLICK ONE
The spread between shocks is $46,300: which kind of fall arrives matters as much as how deep it goes.
What carries the loss
Options 74%, shares 26%
Sector mix
−$2,400
If it gets worse
−20%: −$18,700
−40%: +$104,300
Illustrative convex book: call spreads, shares and an index hedge.
Drawdown · four kinds of shock
Which kind of sell-off hurts this book
A 10% fall is not one number. StockAgents reruns the whole book through four historical kinds of sell-off and shows how much each would cost, which positions carry it and what is protecting you.
- 01Dash for cash, rate shock, growth scare and energy shock, from real episodes, with best, central and worst
- 02Each holding moved by its sector’s down-beta in that kind of shock, and every option repriced in full
- 03What carries the loss, what protects you, and the cost from a 5% to a 40% fall
- 04Attribution with nothing left over: linear move, convexity, volatility and time decay, down to each position
Wondering how this compares with Moontower, SpotGamma, Unusual Whales or Market Chameleon?
See the comparison →FAQ
Do we have to trade options to use it?
No. Beta hedges can use sector ETFs or the index alone. Options come in when protection is cheap or a collar fits a holding.
How is “what my picks earned” measured?
The same holdings run at beta 0 alongside your actual book. With the market hedged out, what remains is the return from stock selection.
Does it fit our mandate limits?
You set the limits and permitted instruments. Every proposal is checked against them, and nothing changes without your approval.