We manage risk according to the following principles:
- Thorough knowledge and understanding of non-traditional investment styles and markets.
- Balancing correlations between investment strategies.
- A conservative approach in allocating across different strategies.
- In-depth understanding of risks associated with each strategy and its impact on performance.
- Use of statistical models to calculate exposure to different risk factors.
- Strict adherence to investment and risk management guidelines.
Quantitative risk controls
- Advanced risk reporting.
- Monotoring and analyzing performance.
- Style drift analysis.
- Liquidity.
- Use of leverage.
- Strategy correlations.
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Qualitative risk controls
- Strict adherence to allocation procedure.
- Clearly defined investment guidelines.
- Monthly investment committee meetings.
- Mandate matching.
- Quarterly due diligence reviews.
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Risk philosophy
Our risk philosophy is founded on the premise that past performance can provide valuable information on certain risks such as volatility and market risk. However, real risk lies in the occurrence of events that never happened before.
