Risk Management & Monitoring


A comprehensive investment discipline quantifies, defines, and controls risk. Our risk management approach is designed to minimize turnover and volatility, reduce operating costs, maximize after-tax returns, and limit the element of surprise. Our risk management approach seeks to control risk in two key areas.

Portfolio Construction: We construct client portfolios to limit unintended biases or concentrations. We establish position thresholds, diversify assets across industries and security types, and ensure each weighting reflects our level of conviction in each position. We also focus on investing with a margin of safety, identifying opportunities that we believe are sufficiently undervalued by the overall market -- a strategy intended to preserve principal while pursuing long-term performance.

Portfolio Monitoring: Investment management is a dynamic process tracking moving targets: markets rise and fall, companies change, and client lifestyles evolve over time. To respond quickly and effectively to such variables, we monitor total portfolio construction on an ongoing basis. This discipline helps us address portfolio imbalances or adverse developments that could cause unnecessary risk or a misalignment with client objectives. By keeping close watch on portfolio composition and individual securities, we can sustain the balance between achieving returns and controlling risk.

In short, careful portfolio construction and vigilant monitoring can help mitigate the factors that might destabilize an otherwise strong investment strategy.

Our level of attention to detail and discipline gives our clients the confidence that their financial picture is being watched at all times.

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