Innovating Investment: Brandywine’s Risk Replacement Strategy

Introducing Enhanced and Target Date Funds

This article spotlights Mike Dever and Brandywine Asset Management’s distinctive approach to seeking high returns with reduced risk through their innovation of “Risk Replacement.” Dever, the firm’s founder, has crafted a suite of 14 Enhanced and Target Date Funds for qualified retirement plans, anchored in the principle that “Reduced Loss = Increased Returns.”

Rethinking Risk for Higher Returns

Dever elaborates that by minimizing losses, recoveries can begin from higher levels, challenging the conventional belief that higher returns necessarily require higher risk. Instead, Brandywine’s funds are founded on the philosophy that enhanced returns are best realized by strategically reducing risk.

Modern Portfolio Theory and Return Drivers

The article also explores Brandywine’s multi-strategy model, inspired by Modern Portfolio Theory. Dever argues that true diversification comes not from a traditional mix of asset classes, but from varied “Return Drivers” that respond differently to market conditions.

The Safer Equity Fund: Combining Strategy with Protection

The article closes with the mention of Brandywine’s Safer Equity Fund, which combines this risk-reducing methodology with volatility-based protection, further enhancing the potential for improved risk-adjusted returns.

Contact us to learn more about Brandywine’s approach.