Diversifying + Defensive Equity Approaches

In times when downside risk may lie ahead, a combination of diversifying and defensive equity approaches can potentially improve the probability of achieving positive outcomes.

Square geometric shapes.


5 min read



Key takeaways

  • In an environment where we experience some sort of recession while inflation stays higher for longer, we believe cautious and defensive positioning is warranted.
  • We believe an enhanced equity income approach could fit well in this environment given its dual focus on income and total return.
  • Two other approaches for consideration in this environment are a long/short equity approach and a futures-based dynamic risk-hedging approach.