SOLUTIONS

TO ABSOLUTE RETURN

QUANTITATIVE PROCESS

RISK MANAGEMENT

Our systematic approach to making arbitrage decisions uses mathematical or statistical models to evaluate data on the fundamental value, risk, liquidity and momentum of thousands of derivatives. We also insist on having economic explanations for why our models did well in the past and continue to do so over the long term.

We take a quantitative and qualitative approach to risk management. Our independent risk management team continually monitors such variables as value-at-risk, drawdowns, liquidity, and counterparty exposures. Clients and counterparties receive data on our fund volatility, cash position, leverage and strategy volatility. We strive to maximize the transparency of our risks.

PATIENT IS GOLD

Investors should be compensated for risk, so they must take risks to achieve their goals. Having a long-term investment horizon is a potential advantage because it allows investors to bear more near-term risk than those with shorter horizons. In order to truly thrive over the long term, however, it is important to brace yourself for the occasional short-term drawdown.