Lórien analyzes a client's portfolio and identifies listed protection strategies that can reduce downside risk while preserving long-term equity exposure.
Pick a sample portfolio and a past crisis, then see how a protection floor would have changed the outcome and what it would have cost — live, from the Lórien engine.
"We saw in 2022 that traditional diversification and asset allocation didn't work the way modern portfolio theory suggested. Stocks and bonds fell together. Advisors are looking for additional ways to help protect client portfolios."
From our adviser interviews
Diversification and hedging are complementary risk management tools that serve different purposes.
Helps reduce portfolio risk through asset allocation and diversification across investments.
Helps reduce the impact of significant market declines by establishing a defined downside floor.
Know the cost. Know the floor. Stay invested.
Simplified illustration. Assumes a strategy composed of a one-year listed put warrant held to expiry and a portfolio that tracks the hedge index. Figures are estimates, not a guarantee of outcomes.
Select a pre-loaded portfolio or customize the positions.
We show how the positions could have reacted to historical market events.
Lórien screens listed hedging instruments, estimating both cost and downside protection.
The adviser remains fully in control. Lórien provides analysis — not recommendations.
In some situations it might be more appropriate to keep clients invested during the critical years surrounding retirement. Downside protection can help mitigate the risks without having to reduce equity exposure too early.
Protect gains without selling. Reduce downside risk without triggering immediate capital gains from selling.
Clients often hold too much cash out of fear. Downside protection can help them invest with more confidence by combining market participation with a clearer risk limit.
Lórien helps advisers quantify downside risk, evaluate protection strategies, and show clients how different outcomes could look.
The adviser always makes the final recommendation. Lórien never executes trades or provides investment advice. We provide analytics to support professional decision-making.