Risk Management

Risk Management

The investment team is constantly identifying and quantifying forward looking risks and stress-testing managers to determine the impact of various market scenarios on the portfolio. We aggregate individual manager risks at the portfolio level on a long, short, gross, and net basis with a focus on the following risk factors:

  • Market Exposure
  • Interest Rate Exposure
  • Credit Exposure
  • Geographic Exposure
  • Currency Exposure
  • Volatility Exposure
  • Asset Class Exposure
  • Liquidity Exposure

We diligently monitor these risk-factors to determine our exposure and implied risk in different market scenarios. Our goal is to find managers who can generate positive outcomes in both stable and volatile market environments.

Click Here for an Example of SFGAA’s Risk Factor Model (Password Required, Contact Us for Access)