Risk Control

Asset Allocation | Security Selection | Sell Discipline | Risk Control

We control risk through a variety of means, starting with asset allocation. No single facet of the investment process will contribute more to risk control and investment returns (with a trade-off between risk and return) than the asset allocation decision.

Secondly, we control risk by building a diversified portfolio, typically holding 20-30 positions with representation in all or most economic sectors, and numerous industries within these sectors.

Third, we control risk with our stock selection process, which combines fundamental research, quantitative modeling and technical analysis; and by adhering to our sell discipline.

The one risk we cannot control is the inevitable fluctuation of the financial markets. We do not engage in market timing, as we do not believe it can be done on a consistent basis.