Risk management is embedded throughout our entire process.
We invest alongside our partners. To us, risk is the permanent loss of capital and we actively manage risk.
From a top-down portfolio level, we are clear as to our risk factors and we are mindful of gross long and short exposure levels.
From a bottom-up position level, we thoroughly examine individual company risk factors at every stage of the process.
We distinguish volatility from risk.
We understand that the task of reducing volatility is ephemeral with a long portfolio of companies with idiosyncratic earnings drivers. We accept that a concentrated strategy such as ours may have periods of volatility. We aim to reduce by being mindful of:
Our gross and net long exposure.
The mix of our long exposure.
Our timing on respective longs.