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Investment philosophy | Portfolio engineering |
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Portfolio management is about managing risk

  • Assessing risk is the most difficult challenge in fund management.
  • Risk means that more things can happen than will happen. It is tied to the consequences of being wrong, i.e it is about losing money, not about underperforming an arbitrary index.
  • Volatility is a poor measure of risk. It is the price investors have to pay in exchange for the opportunity to make money.

Portfolio management is about managing risk
What do we know about risk?
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