Risk Control Philosophy

  • We only deviate from the benchmark where we believe we can add value
  • In order to control risk and not fall victim to the Framing Bias, we build portfolios using current information, not past statistical relationships (e.g., optimizers)
  • We utilize our knowledge of the benchmark from managing index funds at State Street Global Advisors to control risk versus the benchmark

Metrics Used

    • Sector weights
    • Industry weights
    • Stock weights
    • Portfolio characteristics
    • Risk Factors