Risk Management

We seek to manage risk to capitalize on opportunities and improve our performance.
Disciplined risk estimation and management are deeply integrated components of the investment process across each one of our strategies.
We believe a well-constructed portfolio upfront will outperform in good markets and protect our client’s capital in difficult markets.
For this reason, CapitalEdge has spent over half a Decade establishing risk management as a core discipline.
This approach begins with a dedicated governance group that oversees risk management. An emphasis on liquid markets, proprietary risk models and a diversified funding structure seeks to further strengthen our approach.
In pre-trade discussions, the Portfolio Construction and Risk group work to identify the impact of potential trades on a portfolio’s risk and stress exposures.
In the ex-post analysis, the group evaluates 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.
We have a reinforced culture A solid framework is important, but successful risk management can only be accomplished when it becomes a central part of the portfolio manager’s analysis of potential trades and portfolio construction.
Continuous communication and collaboration with the investment teams, combined with an in-depth understanding of the portfolios, play a critical role in maintaining and strengthening our risk culture.