A Morningstar five-star-rated manager of separate accounts is entering the mutual fund game. Durango, Colorado-based Swan Capital Management
] has filed the paperwork
for its first fund, the Swan Defined Risk Fund
The fund will be PMed by Randy Swan
, the company's founder, and distributed by Northern Lights. Jim Pritchard
, Swan Capital Management's director of sales and marketing, told MFWire
that he hopes the fund will launch in two to three weeks.
Pritchard said that the fund will follow the same strategy that the firm uses in its separately managed accounts, which are designed to protect clients from downside risk. In its fifteen years of operation, Pritchard said, the firm only lost money in a bear market once, in 2008, when it was down 4.8 percent. The strategy invests in S&P 500 ETFs and hedges with a put option against long ETFs, and includes a monthly options income component.
Operating out of southwestern Colorado, Swan manages approximately $150 million in its SMAs.
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