Our risk management procedures allow us to minimize the fund’s drawdown during difficult times
back to investment strategyWe are convinced that risk management is the foundation of successful investment in technology growth stocks. We believe a well-constructed portfolio will outperform the general indexes in the long term and protect our clients’ capital in difficult markets. Disciplined risk estimation and management are deeply integrated components of our investment process. Risk management is a central part of the portfolio manager’s analysis of potential trades and portfolio construction. Some of our risk management rules, which have been tested by the portfolio manager in the past four financial crises:
The portfolio is structured in such a way that the maximum loss from one position should not be higher than 3% of the total assets in the portfolio.
The weight of a biotech company, where the drugs are at the 1st or 2nd stage of clinical studies, should not exceed 5% in the portfolio.
We follow UCITS diversification principles with maximum allocation to one position of 10%. But we do not follow UCITS portfolio concentration principles, as making focused, concentrated bets is part of our strategy. The weight of the top 10 holdings can be up to 60% of the portfolio.