Elements of Active Risk Management

We focus on correlation reduction and indexing as the first step toward risk management. Indexing minimizes single stock risk while reduced correlation is intended to reduce portfolio volatility. Because correlations are dynamic and sometimes break down, this is not sufficient to achieve our goal. As a result, additional steps are needed to reduce volatility and risk. We use four techniques to actively control risk in a portfolio.

First, we rely on our experience and market awareness to guide our views on market direction, potential risks, and strategies to mitigate them. Awareness comes from active participation in the securities markets.

Second, we utilize portfolio stress testing software to analyze portfolios for potential risks. This can identify problems and provide ideas for hedges or alternate investments.

Third, we actively reduce risks with options strategies that utilize directional and short positions. These dampen the effect of losses in the portfolio either by direction or by the positive cash flow they produce.

Fourth, we purchase portfolio insurance to protect against extreme events in the riskiest holdings.

No two individuals or families are alike, so developing unique strategies for each account allows us to partner with our clients to achieve their unique investment objectives.

We have earned our clients' trust because

  • Our Clients come first. We have a fiduciary responsibility to our clients. Our goal is to protect and grow their assets for current and future generations. We do not engage in any soft dollar agreements, payment for order flow, hidden execution cost or any additional transaction fees. This protects you the client, our customer, not the principals of the firm.


  • Our partnership culture thrives around the daily stewardship of client assets. This our most distinctive strength, and the source of our core commitment and our reputation.
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