Diversify beyond stocks and bonds.
Strategies once reserved for hedge funds and endowments, in a managed portfolio that aims to grow your wealth even when stocks fall.
- CA Registered Investment Adviser
- Fiduciary
- Assets held at Charles Schwab / Altruist
- SIPC protection
- Crisis alphaFor: Prolonged stock market declines
- Inflation defenseFor: Rising inflation
- Market-independent growthFor: Flat or choppy stock markets
- Investors who want their wealth to depend less on the stock market.
- Investors who rely on bonds for diversification, and want higher long-term growth.
The InverseWealth Defensive Strategy
An all-in-one alternatives portfolio. It aims for:
- 1Positive returns during periods when stocks don't perform.
- 2Stronger long-term returns than traditional defensive assets (e.g. bonds or cash).
Three independent defensive engines.
Each engine addresses a different risk to your wealth.
- Crisis alpha
Aims for positive returns during prolonged stock market declines.
Example: trend following
- Inflation defense
Aims to protect your purchasing power.
Example: gold
- Market-independent growth
Aims for steady returns that don't depend on stocks going up.
Example: equity market neutral
Why not just hold bonds?
Bonds are the usual way to cushion a portfolio when stocks fall. Over the past decade, they have fallen short.
2.0% a year over 2016 to 2025, effectively losing money when adjusted for inflation.
2016 to 2025, annualized
In 2022, bonds lost 13.0% as stocks fell 18.1%.
2022
Bonds: Bloomberg US Aggregate Bond Index total return; 2016 to 2025 figure is annualized from calendar-year returns. Stocks: S&P 500 Total Return Index. Inflation: CPI-U, December to December (US Bureau of Labor Statistics); 2016 to 2025 figure is annualized from December 2015 to December 2025. Indices are unmanaged, do not incur fees or expenses, and cannot be invested in directly. Returns do not account for trading costs, fees, taxes or expenses. Past performance is not an indication of future results.
The Defensive Strategy is designed to be a better diversifier.
It aims to generate returns when stocks don't perform, with stronger long-term growth potential.
Get the Defensive Strategy white paper
- How the Defensive Strategy works
- The risks it aims to protect against
- How strategies like the ones it uses held up in past crises and bear markets
Alternatives, without the hedge fund strings.
Every investment is a mutual fund or ETF. No lockups or redemption gates.
Legally required to act in your best interest. No commissions or product sales.
Institutional-grade strategies, without hedge fund minimums.
This page is for informational and educational purposes only. It is not an offer to sell or a solicitation of an offer to buy any security, and it is not tax or legal advice. InverseWealth LLC is a California-registered investment adviser, independent of and not affiliated with Altruist or Charles Schwab. Registration does not imply a certain level of skill or training. There is no guarantee the Defensive Strategy will meet its objectives, and the portfolio may lose money in any market environment. All investing involves risk, including loss of principal.
Strategies named on this page are representative examples; engine composition and weights may change at any time at InverseWealth’s discretion.
The InverseWealth Defensive Strategy invests in alternatives. Alternative strategies involve risks including the use of derivatives, leverage and short selling, manager risk, and losses from events specific to each strategy, such as natural catastrophes for reinsurance-linked investments. Alternative investments involve a high degree of risk and may not be suitable for all investors. They can be more complex than traditional stock and bond investments, may be more volatile, and can underperform for extended periods. Diversification does not assure a profit or protect against loss. Alternative strategies generally carry higher fund expenses than index funds, and these expenses are in addition to InverseWealth’s advisory fee. Some strategies generate taxable income or distributions that are less tax-efficient than a typical stock fund; consult a tax professional about your situation. Investors should carefully consider the investment objectives, risks, charges and expenses of each fund before investing. This and other information is contained in each fund’s prospectus, available on request. SIPC and excess coverage protect against custodian failure, not market losses. Not a solicitation of advisory services outside California or where otherwise legally permitted.