How much is appropriate?
Conviction is one input to position size. Concentration, market exposure and the effect of adverse outcomes on the whole portfolio also matter.
Our approach / Risk
Risk is part
of the decision.
Portfolio construction connects an investment view with the consequences of being wrong. We consider position size, diversification, liquidity and changing market exposure together.
The portfolio perspective
An investment does not
stand alone.
A position’s role depends on what the portfolio already owns and how those exposures may behave together.
The fund’s risk-management approach considers market volatility, liquidity, concentration, overall exposure and drawdown risk. Position sizing and allocations respond to market conditions and the manager’s assessment of portfolio risk.
When conditions or quantitative signals indicate elevated risk, the fund may reduce positions or aggregate exposure, increase cash or use hedging techniques. These responses involve trade-offs and cannot ensure that losses will be avoided.
Four connected considerations
From a position
to the whole portfolio.
Can the view be adjusted?
The strategy generally emphasises highly liquid public-market securities. Liquidity supports flexibility, but trading conditions can deteriorate when markets are under stress.
Which risks remain?
Cash, tactical exposure changes and selected hedging strategies may alter the portfolio’s risk profile. Hedges can cost money, limit upside or provide imperfect protection.
Is the evidence still useful?
Historical relationships can change. Data can be incomplete or misleading, and model outputs can fail to capture new market conditions.
Models in a changing market
Useful does not
mean permanent.
Our quantitative models are used in live investment decisions and continue to be evaluated and developed. A model that has been useful can become less effective or stop working. A consistent research philosophy does not imply that individual models remain valid indefinitely.
Human review considers signals alongside macroeconomic developments, company fundamentals and portfolio exposures. Judgment introduces its own uncertainty; it does not make a model or an investment decision infallible.
The process is designed to remain responsive to evidence. There is no assurance that monitoring, refinement or replacement will identify or resolve every model problem before losses occur.
Understanding the investment
Read the full risk picture.
The fund is exposed to investment risks, including market losses, model and data limitations, liquidity constraints, concentration and risks associated with derivatives or other strategies when used. The value of an investment can fall, and investors may lose capital.
This page describes the approach at a high level. It is not a complete statement of risks, a promise of downside protection or a guarantee that the fund will achieve its objective. The offering documents set out the fund’s risks and terms in greater detail.
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