Risk Management

We seek to mitigate risk on three levels: the security level, the portfolio level and the client specific (asset mix) level. Here are a few of our risk management protocols:

Security Level

  • Quality rating assigned, only high quality companies are included in our universe
  • Assessment of the business cyclicality
  • Conservatively estimating intrinsic value
  • Determining an appropriate margin of safety
  • Capital Allocation restrictions based on quality grading
  • Sell protocols based on the assigned quality grading
  • Quality rating assigned, filter universe for high quality only

Portfolio/Mandate Level

  • Geographic constraints if any
  • Sector Allocation constraints
  • Max number of names in any sub-sector group
  • Market capitalization parameters
  • Maximum number of holdings
  • Maximum security weightings based on grade
  • Established cash weighting guidelines

Client Asset Mix Level

  • Customized asset allocation incorporating built-in contingencies
  • Disciplined rebalancing
  • Tax-efficient strategies