Risk Management

We employ a fundamental, bottom-up analytical framework to identify the key industry and company opportunities and risks.  The portfolio manager considers each analyst’s equally distributed Strong Buy/Buy/Hold/Sell/ Strong Sell stock recommendations, alongside other risk factors when constructing a portfolio. Portfolio diversification and risk constraints then act to constrain unsystematic or company-specific risk within the portfolio to targeted levels.

A series of quantitative tools are also used to complement the fundamentally derived risk analysis, to ensure that the portfolio is not subject to any broader macro/style risks that might be overlooked when assessing risks at the individual stock/industry level.