Risk Control

Secondary


  • Maintaining objectivity in evaluating winning and losing positions
  • Maintaining adequate sector and industry diversification

Risk Control Does Not Emphasize

  • Maintaining a low target tracking error
  • Owning low or zero conviction stocks for diversification reasons

Our risk control efforts emphasize:

Primary


  • "Getting it right" on the companies we own
  • Maintaining diversification of stock specific risks and exposure to factor variables
  • Investing in businesses we understand
  • Avoiding companies we cannot effectively value
  • Providing a "margin of safety" for our company holdings based on a discounted price, healthy financials, and strong management