Brandywine's approach
Each of Brandywine's products are built on one core philosophy, Reduced Loss = Increased Returns. The way we do this is through an innovative investment framework called Risk Replacement.
Outperform Benchmarks
Seek to outperform benchmarks over full market cycles
Limit Bear Market Losses
Reduce dramatic losses during market downturns
Maintain Downside Protection
Provide downside protection 100% of the time
Why Limiting Drawdowns Matters
Drawdowns Kill Performance. The math is straightforward: a 33% loss requires 49% just to get back to even, while constraining that loss to just 20% requires only 25% to recover—meaning a 13% reduction in loss provides a disproportionate 24% performance edge. Brandywine's strategies are engineered to exploit this asymmetrical math, so investors can stay invested through the worst of markets and recover faster.
How this played out in real time: the Tariff Tantrum
From 5/31/23 through 4/30/26
| Largest Loss | Annual Return | |
|---|---|---|
| Brandywine Small Cap | -11.7% | +20.6% |
| Russell 2000 TR | -18.9% | +18.1% |
Even in a bull market, Risk Replacement can outperform.
Scroll to view chart
Largest Loss and Annual Return are calculated on a month-end basis; the chart reflects weekly values. Past performance is not indicative of future performance. There is the risk of loss as well as the opportunity for gain when investing in these strategies.
How Risk Replacement Works
Every Brandywine strategy uses the same three-part structure:
Equity or Fixed Income Exposure
We purchase 100% beta in the underlying benchmark, like the Russell 1000 for our Brandywine Large Cap strategy
Put Option Protection
We purchase long put options that are always on and mitigate loss
Return Driver Diversifier
We invest in a broadly diversified portfolio of non-correlated assets that seek to pay for the cost of the put protection
Each strategy seeks to maintain 100% upside participation while providing continuous downside protection.
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