2020 Q1 TAM Portfolio Update: The Beauty and the Beast
So How Did We Do?
The answer: It’s all relative…
In the chart above we have a representation of Tamalpais Asset Management’s (TAM) three main portfolios compared to the S&P 500 and a basic 60/40 (equity/bond) portfolio. It is clear to see that TAM portfolios outperform and are less volatile than common portfolio benchmarks.
Year-to-date performance of TAM’s three primary portfolios are in the double digits. The difference between investing with TAM or in the S&P 500 is listed below. The outperformance is substantial and less volatile:
Tamalpais Option Advisory Services (TOAS)
Stay Invested and Stay Protected
As a wealth manager TAM’s goal is to provide clients with the best risk adjusted return that the market will allow. TAM relies on a core portfolio allocation and a number of portfolio option strategies to manage a client’s systemic and idiosyncratic risk. By coupling our Tamalpais Core Portfolio (TAM Core) with active and passive option strategies TAM creates a superior portfolio tailored to a client’s needs. The events of the past month remind us of how dangerous investing can be if you are not prepared. The unimaginable becomes the reality and our new normal.
Option Overlay Strategies
• Tail Hedging - TCPP
• Concentrated Single Stock Hedging
• RSU Hedging
• Opportunistic Value Add
• Bespoke Portfolio Risk Mitigation
Stay invested. The strategies seek to capture a substantial portion of positive U.S. equity market gains (no FOMO).
Stay protected, crash protection, during sudden substantial market declines, the put-protection strategy is designed to generate positive returns to reduce and potentially offset the negative returns from equity exposure. We cut off the left long tail.
Cash Returns during market declines, profits are realized and reinvested to the TAM Core portfolio facilitating enhanced returns as the equity markets recover. TAM’s clients are buyers when others are forced to sell.
Dynamic Risk Management. Options are dynamically managed to take advantage of market conditions and favorable option pricing.
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