Joe Cusick, Vice President, Portfolio Specialist, defines the “North Star trade” and its role in seeking to take advantage of the market’s natural drift to the upside while protecting against market shocks.

Where does it fit in a client’s portfolio? According to Joe Cusick, Vice President, Portfolio Specialist, CIHEX aims for less volatility, shallow drawdowns and quicker rebounds after equity market pullbacks.

Joe Cusick, Vice President, Portfolio Specialist, comments on two essential traits that make CIHEX stand out from its peers and explains its goal of selling expensive volatility and buying cheap volatility.

Traditional portfolios don’t always provide adequate diversification, particularly during market shocks, says Joe Cusick, Vice President, Portfolio Specialist. Options-based funds offer an alternative.

Joe Cusick, Vice President, Portfolio Specialist, favors CIHEX’s dynamic approach, pointing out that fund managers with a set it/forget it methodology could miss out on new opportunities as they arise.

Jason Hill, Senior Vice President, Co-Portfolio Manager, characterizes the strategy as having two primary components, an option-hedge portion and an S&P replication basket.

Jason Hill, Senior Vice President, Co-Portfolio Manager, describes how this model trade serves as “a compass.”

Dave O’Donohue, Senior Vice President, Co-Portfolio Manager, points out how a more active, more flexible management approach helps set Calamos apart.