Risk ManagementWe help investment mangers to identify key risk exposures, performance drivers, define and monitor risk tolerance parameters using repeatable and reliable investment process. We offer both advice and implementation of risk tracking using the latest technologies and quantitative analytics tools.
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POrtfolio AnalysisWe provide investment analysis to advisories who employ relatively stable investment strategies as well as hedged strategies.
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ReportingWe help investment firms implement the best practices for investment reporting including those compliant with the CFA institute guidelines. We also advise on technology solutions that meet the requirements of the advisers.
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Who we work with
We work with institutional investors - broker-dealers, registered investment advisors, family offices and foundations who already perform some degree of investment management and investment planning.
Risk Culture
The risk culture at a company starts with a risk management process that is supported by analytics designed to identify, measure and manage risk. This framework is important, but it can only be accomplished when it becomes a central part of the portfolio manager’s analysis of potential trades and portfolio construction. Strong ties with the investment teams, combined with an in-depth understanding of the portfolios, play a critical role in maintaining and strengthening our risk culture.
A good Risk management methodology
A robust risk estimation methodology, using innovative analytics and flexible aggregation tools, is a key component of a successful process. At the same time, the process is enhanced through pre-trade dialogue and ex-post analysis of a portfolio’s performance. In pre-trade discussions, our group aims to identify the impact of potential trades on a portfolio’s risk and stress exposures. In the ex-post analysis, the group aids in the evaluation of the skill, infrastructure, investment universe, risk and working capital utilization of each business, and uses this information as a part of the risk capital allocation process.
Track and manage risk
Risk, just like any other aspect of investments changes every second. We don't believe in existence of a status quo. This is applies to all investments - liquid and illiquid, listed or private. The fact that the frequent pricing is not available to privately held investments does not mean that their fundamental value and future prospects are not affected by the events that visibly (and almost instantaneously) affect publicly traded investments.
Risk is present in all securities - the volatile ones such as equities for reasons different from the instruments such as CDs which in a low-rate environment will not compensate for inflation and therefore provide real return losses.
Risk is present in all securities - the volatile ones such as equities for reasons different from the instruments such as CDs which in a low-rate environment will not compensate for inflation and therefore provide real return losses.
Diversification - the right amount
It is very common to have too much diversification in both clients portfolios and in terms of looking at an entire book of business. At the point where the investment management team is unable to keep track of all the positions the diversification becomes a total return detractor rather than contributor.
Investment management team can only track so many company specific events, adjusting the views and relations and key indicators that periodically shift.
Investment management team can only track so many company specific events, adjusting the views and relations and key indicators that periodically shift.
Risk - Reward
The conventional financial wisdom suggests the level of risk associated with a particular investment or asset class typically correlates with the level of return the investment might achieve. The rationale behind this relationship is that investors willing to take on risky investments and potentially lose money should be rewarded for their risk.
In reality the equation has not worked out so simply, especially when observed on entire portfolio level.
In the context of investing, reward is the possibility of higher returns. The tradeoff is that with this higher return comes greater risk: as an asset class, stocks are riskier than corporate bonds, and corporate bonds are riskier than Treasury bonds or bank savings products.
In reality the equation has not worked out so simply, especially when observed on entire portfolio level.
In the context of investing, reward is the possibility of higher returns. The tradeoff is that with this higher return comes greater risk: as an asset class, stocks are riskier than corporate bonds, and corporate bonds are riskier than Treasury bonds or bank savings products.
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