Guardrail Strategies
Core Growth with Loss Limits
Capital-efficient growth with a hard guardrail.
- Objective
- 10%+ target return
- Downside
- Max drawdown −11% / 6 months
The problem
The standard 60/40 or all-equity core leaves clients fully exposed to drawdowns they never agreed to. When the market falls 30%, the client feels every point of it — and that is when they abandon the plan.
How it works
Build a capital-efficient core
A diversified growth allocation engineered to participate in markets without over-committing capital.
Overlay the guardrail
Option structures define a maximum drawdown over a rolling six-month window — the worst case is known before entry.
Stay liquid
A transparent, liquid alternative to opaque structured products, with no high minimums or lock-ups.
What’s inside
Diversified growth core
Broad equity exposure as the return engine.
Option collar overlay
Defines the downside boundary over each six-month window.
Liquid structure
Daily-liquid, transparent, model-portfolio delivery.
Who it’s for
- Advisors who want a core holding clients will not panic-sell.
- Clients seeking growth with a pre-defined worst case.
- Books moving off opaque structured notes into a liquid alternative.
Common questions
What does "10%+ target return" mean?
It is a return objective, not a promise. Actual results vary with markets. See the disclosure below.
How is −11% max drawdown defined?
As a drawdown objective over a rolling six-month window, managed via option collars and sizing. It is a target, not a guarantee against loss.
Why is this better than a structured note?
Daily liquidity, transparency, no high minimums, and no single-issuer credit risk.
Request details on Core Growth.
For RIAs and institutional investors evaluating option-based model portfolios.
Contact Us →Other Guardrail strategies
Consistent Income with Loss Limits
6% distributions for life
Growth Equity with Loss Limits
~90% of QQQ long-term return
Target returns, distribution rates, and drawdown figures are objectives, not guarantees. All investing involves risk, including possible loss of principal. Past performance is not indicative of future results. Option strategies are not suitable for all investors. Nothing herein is an offer, a recommendation, or tax, legal, or investment advice. Yayati Asset Management is a Registered Investment Adviser; see Form ADV for details.