SWAN Alpha
Sleep Well. Stay Invested.
SWAN Alpha is a quantitative framework for serious, hands-on investors who want equity-like returns with more controlled risk and drawdowns.
  • Regime Signals
    Data-driven regime classification that clarifies when conditions favor taking risk—and when they call for defense.
  • Overlay Signals
    Tactical signals for both risk (regime shifts, correction alerts) and opportunity (pullbacks, bottoms), designed to improve outcomes without sacrificing risk discipline.
  • Model Portfolios
    Systematic portfolio construction and allocation optimization with monthly rebalancing, targeting strong returns with controlled drawdowns.

SWAN Portfolio

The SWAN Portfolio is a live model portfolio built from a curated universe of wide-moat companies, tilted toward stocks with strong momentum, and optimized to minimize portfolio volatility. Holdings are selected and rebalanced by our algorithms at each month‑end. Total exposure is regime‑aware: in bear / neutral regimes the portfolio moves to cash, while supportive regimes allow full equity exposure. The chart shows live performance since launch on December 31, 2024 versus SPY Buy & Hold, and the Holdings panel reflects the current portfolio components.

SWAN (CAGR: 52.1%, Sharpe: 4.04, MaxDD: -3.6%, Vol: 10.6%)
SPY B&H (CAGR: 15.7%, Sharpe: 0.88, MaxDD: -18.8%)
Holdings of SWAN Portfolio
Last rebalanced on 2026-02-27
Ticker Shares Value Weight
JNJ1,646$408,91625.2%
CL2,914$288,89417.8%
PEP1,123$190,61811.7%
LMT263$173,07510.6%
ASML110$159,5629.8%
NOC200$144,8768.9%
DE202$127,2017.8%
EQIX121$117,8857.3%
TXN47$9,9690.6%
CASH$4,6330.3%
Total as of 2026-03-01$1,625,629

Disclaimers

  • The information and results presented are for research and educational purposes only and do not constitute investment advice or an offer to buy or sell any security or investment product.
  • Past performance does not guarantee future results. Live signals may underperform SPY and may result in losses over any time horizon.
  • Portfolio starts with $1,000,000 on 2024-12-31. Rebalance is conducted on the last trading day of each month using close prices. Transaction costs, taxes, or slippage are NOT included.

Live Regime and Risk Signals

Market regime describes the prevailing market environment, reflected in price action, volatility, and risk–return dynamics. Our model classifies each trading day as Bull, Neutral, or Bear (more defensive), shown by the colored bars beneath the SPY chart. Our model also publish early pullback risk signals that combine information from equities, yield curve, liquidity, options, and credit stress. WATCH signals elevated risk; ALERT signals a higher-risk state that may warrant tighter risk controls, defensive positioning, or hedging.
Live status
as of Mar 1, 2026, 11:06 AM EST
Current Regime: Bull
Target exposure: 100%
Correction Risk: Low
Bull Regime
Neutral Regime
Bear Regime

Regime-Based Exposure Strategy

Regime-Based Exposure is a rule-based allocation framework that scales equity exposure according to the prevailing market regime (e.g., Bull 100%, Neutral 50%, Bear 0%), rather than staying fully invested at all times. The table compares the regime-based approach, driven by our regime signals, with Buy & Hold and the commonly used MA200 crossover strategy across key risk and return metrics. In the results shown, the regime-based approach delivers competitive returns with meaningfully lower drawdowns and volatility, supporting a smoother long-term equity experience.
Period Strategy CAGR MaxDD Calmar Sharpe Sortino Volatility
1998-PresentRegime-Based Exposure9.1%-19.5%0.470.800.9211.8%
Buy & Hold9.1%-55.4%0.160.540.6919.4%
MA200 Crossover7.5%-23.8%0.320.660.7512.0%
2000-2007Regime-Based Exposure3.0%-13.5%0.230.330.3810.7%
Buy & Hold1.6%-47.3%0.030.180.2618.1%
MA200 Crossover1.8%-21.3%0.080.210.2311.2%
2008-2012Regime-Based Exposure7.3%-14.7%0.490.690.7511.0%
Buy & Hold1.5%-52.1%0.030.190.2326.1%
MA200 Crossover4.2%-23.8%0.180.420.4211.6%
2013-2019Regime-Based Exposure12.0%-13.8%0.871.121.3210.7%
Buy & Hold14.6%-19.3%0.761.131.4112.8%
MA200 Crossover11.0%-13.1%0.841.021.2010.8%
2020-PresentRegime-Based Exposure13.0%-19.5%0.670.991.1113.2%
Buy & Hold14.7%-34.0%0.430.770.9420.6%
MA200 Crossover11.6%-18.9%0.610.931.0512.7%
  • The comparison is based on trading SPY (dividends included) and assumes 4% cash yield.
  • Backtests are walk-forward and out-of-sample, assume open-to-close execution, and do not include transaction costs, taxes, or slippage.