Risk-Controlled Management

We believe that the best performing institutional portfolios over the long-term, at various places on the risk spectrum, have been those which have maintained the most static and consistent levels of risk through full investment cycles including deep downturns. Maintaining risk requires the investor to constantly measure and monitor the look-through market exposures of the underlying asset managers comprising the overall portfolio and rebalancing to target risk levels (i.e., market exposures) and to target asset allocation when the collective risk of the managers deviates from long-term targets. This approach to managing the risk of our clients’ portfolios requires strong asset manager relationships with the accompanying transparency. Our approach avoids the usual performance “leakage” which accompanies overall portfolio management that seeks to time market risk exposure or to leave the collection of asset managers to do this in an uncoordinated and often unintentional manner.