01 Objective
Hedged-equity total return with a smoother ride than the underlying market — participation in upside, an explicit cushion in drawdowns, and income generated from option premium and dividends.
Income
BuyWrite
Hedged equity with a covered-call overlay — a global equity ETF core, with calls written on the underlying ETFs and managed dynamically. Premium income and a downside cushion, in one sleeve that lives between equity and fixed income.
Hedged equity, not yield chasing.
The covered-call category is crowded with strategies built to print a headline yield. The standard playbook writes short-dated, out-of-the-money calls — weekly or monthly options struck above the market — to maximize the distribution sticker. It works until the market falls, at which point the thin premium does almost nothing to cushion the drawdown.
We start from a different premise. BuyWrite is dual-active: the same fundamental-with-a-catalyst research that builds the equity allocation also drives the option overlay. Calls are written on the underlying ETFs and managed case-by-case — strikes, expirations, and rolls move with our market and sector outlook, in, at, or out of the money as conditions warrant. Against a category of short-dated, rules-based programs, that flexibility is the edge.
We believe the question that matters is which strategy a client can actually stay invested in through a deep drawdown. A smoother return path keeps people in their seats, and staying invested is what compounds.
Underneath the overlay sits a global equity ETF allocation — diversified across regions and sectors, built from the same research the firm has run for more than twenty years.
Spec sheet
At a glance.
02 Approach
Dual-active. The same fundamental-with-a-catalyst framework drives the global equity ETF allocation; a dynamic overlay writes covered calls on the underlying ETFs — case-by-case, aligned to our market and sector outlook — so strikes, expirations, and rolls reflect current conditions.
03 Implementation
The equity sleeve is expressed through liquid, global equity ETFs; calls are written on those underlying ETFs, with strike and expiration set case-by-case — flexibly in, at, or out of the money. Available as an ETF (BUYW) and as a model.
How it works.
Three steps from a global equity core to a hedged-equity sleeve — own the ETFs, write calls on them, deliver a defined portfolio role.
01 Core
Own equity ETFs
A diversified, global ETF allocation creates the underlying equity exposure — built from fundamental-with-a-catalyst research.
Sector allocations are illustrative.
02 Overlay
Write covered calls
Sell covered calls on the underlying ETFs — strike and expiration set case-by-case — collecting premium up front.
Call Option
Contract
Contract
Strike
Where it’s struck — sets premium and protection
Expiration
Longer-dated than the category’s weeklies — balances premium against time decay
Roll
Adjusted case-by-case as conditions evolve
Overlay decisions adapt to market conditions.
03 Outcome
Deliver portfolio role
Premium and dividends become income; the equity core keeps participating; the written calls smooth the ride.
Income
Call premium adds to dividends
Participation
Retains equity upside to the strike
Lower volatility
Premium income helps smooth returns
BuyWrite Full equity
Illustrative path versus full equity.
Own the ETFs. Write calls over them.
Equity allocation and option overlay are managed together as one integrated portfolio — the same research drives both sides.
Source of return
Where the return comes from.
Equity has two return engines — price appreciation and dividends. BuyWrite adds a third: option premium.
BuyWrite adds a third return engine traditional portfolios don’t have.
Premium income is the differentiator — equity exposure plus a covered-call overlay. Sheets are illustrative of the return sources, not their relative magnitude.
The premium
Income that doesn’t depend on rates
Generated by volatility and time, not the level of interest rates — and distributed monthly, so it behaves differently from a bond coupon.
The cushion
Absorbs the first leg down
Premium softens a drawdown before the equity core feels it — and writing closer to the money deepens it.
The trade-off
A smoother path, by design
We give up some upside in a sharp rally for a ride a client can actually stay invested through.
Across the cycle
How it behaves in every market.
The same structure produces a different role depending on the regime. The cushion does the most work when markets fall; the premium edges ahead when markets go nowhere; the cap is the cost you pay when markets run.
01 Gives up some upside
Up markets
Participates with the market up to the strike, then the written calls cap the climb. We lag a runaway rally — the deliberate cost of the cushion.
02 Edges ahead
Sideways markets
When the index goes nowhere, the equity core earns little — but collected premium keeps accruing. This is where the overlay shines and BuyWrite tends to outpace the underlying.
03 Cushions the fall
Down markets
The premium collected absorbs the first leg down before the equity core feels it. The drawdown is shallower — the difference a client can actually stay invested through.
04 Premium-rich
Volatile markets
Higher volatility means richer premium for the same strike. The overlay dampens the swings of the underlying while the larger premium gets paid for the turbulence.
Hedged equity Broad equity
For illustrative purposes only. The paths shown are stylized depictions of how the strategy is structured to behave across market environments — not actual or hypothetical performance, a projection, or a guarantee of any result. For actual, strategy-level performance across these environments, please contact us.
One structure, four jobs — the cushion when it’s needed, the premium when it’s not, and a smoother ride through all of it.
Where it fits in a portfolio.
Two pies tell the story — a balanced client portfolio on the left, and a zoom into the income bucket on the right, where BuyWrite sits alongside high-yield bonds and dividend-paying equities.
Sample portfolio allocation
Illustrative portfolio — not a recommendation. Generally sized 15–20% of a balanced book, larger in income-focused models.
Talk with us about BuyWrite.
Walk through how the overlay is run today, the dual-active philosophy behind it, or how the sleeve would fit alongside your existing income allocation. The conversation is the partnership.