Commentary
“Risk management is the bedrock of our firm” is often a line you hear when managers or advisers talk about their strategy and approach to the markets. What you rarely hear is an in depth explanation of what that supposed bedrock is actually made up of. What is the actual process a manager goes through in assessing all of the perceived as well as potential unperceived risks in a particular investment or strategy? What does it mean to manage risk in real time? Do you manage risk for individual positions or the entirety of a portfolio?
