top of page
Concrete Panels


Diversifying Risk

The empirical evidence shows that trying to predict the markets is impossible and the biggest risk to our wealth is taking outsized investment views that do not work out. Instead of investing for events that may not happen, our approach entails diversifying across asset classes that bear different risks. This enables to us rebalance portfolios systematically and opportunistically when markets move significantly. 

Risk Curve - Transparent.png
Untitled design (1).jpg


No one beats the markets, which is clear from many years of empirical evidence, but the question is which ones? The broad market benchmarks are mostly weighted by size (market capitalisation), which means they are heavily skewed towards the US, the Dollar, and certain sectors. We therefore developed an index that also incorporates other factors and is more broadly diversified across regions, sectors, and size. 

Untitled design (1).jpg


There are many complexities to investing in credit risk, from the quality of the borrower to the length of the maturity, and structure of a given debt instrument. We prefer higher quality and low to medium term duration when allocating to government and corporate bonds. The aim is to generate fixed income whilst providing portfolio diversification rather than speculating on interest rates. 

Untitled design (1).jpg


To diversify our holding of equities and bonds further we also invest in strategies that that can make money regardless of market direction. Hedge funds are designed to generate excess returns (alpha), from the movement of securities relative to one another. In times of market duress, these investment strategies can also provide a source of capital for portfolio rebalancing. We diversify across many different strategies and managers to minimise risk. 


For our strategy to work we need to be able to buy and sell assets instantly, rather than having to wait before receiving the proceeds from selling individual investments. We only invest in investment instruments and strategies that are traded on market exchanges with daily liquidity, including equities (single stocks and ETFs), bonds (Gilts and ETFs), and alternatives (UCITS hedge funds).

bottom of page