Risk Control
Risk can be defined and measured in many ways – we believe the most important aspect of controlling risk is by aiming to limit the exposure of our investors’ capital to a large loss. Keeping this in mind, our strategy is to limit drawdowns. Employing a well-defined sell discipline is one of the risk management tools we use to pursue this objective.
As trend followers, we don't worry about what the markets are going to do tomorrow. We don't concern ourselves with forecasts, predictions or "exciting new breakthroughs." We focus and base our decisions on quantitative and qualitative information only.
Sound investment policy is about risk management. The first question any investor should ask is, "How much can I afford to lose?" All other decisions should be based upon this answer. This is the mentality we employ when designing and managing wealth.