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Our Risk Management Approach
We view hedge fund risk management as the framework to define the shape of our investment opportunities. For this reason, it is of paramount importance to portfolio construction. We believe energy markets, especially power, have the potential to exhibit idiosyncratic characteristics, requiring a tailored risk management solution in order to successfully navigate through market torsion.
Contact usRisk Management at the Core
We have the privilege of being stewards of our investors’ capital. Our goal is to take a holistic approach to portfolio and hedge funds risk management through the use of systematic requirements coupled with human implementation.
Our belief is that we are all risk managers, no matter the business unit we operate within. The Risk Committee carries a constant dialogue evaluating portfolio themes from multiple angles to foster persistent performance over time.
How We Manage Risks
We believe managing risk starts with the identification of the known and an earnest evaluation of the unknown. A cohesive symbiosis between quantitative risks and an organic process to identify non-measurable risks can lead to a respectful perspective to adverse portfolio and business outcomes.
Statistical Approach
An empirical approach to measuring risk can be an appropriate baseline as a first step to understanding portfolio exposures. Using various applications of actual observations into analysis can lead to meaningful conclusions.
Forward Looking
A common flaw with an overly mechanical risk policy may include an inability to appreciate market environments that have yet to be expressed in historical data series. We believe a critical component to risk management is to maintain a constant dialogue on game theory to paint scenarios that can adversely affect our fundamental assumptions.
Acknowledging Imperfection
Managing risk starts with the identification of the known and an earnest evaluation of the unknown. Gaps exist in even the most widely-accepted risk philosophies, and 12 years of being in business have taught us that there is no perfect risk system. This drives us to search for scenarios which can potentially disprove our ideas and improve our coverage.
Our Risk Committee
Our Risk Committee brings unparalleled industry experience managing portfolios at global banks, hedge funds, and merchant utilities. Acquiring intimate knowledge of differing risk philosophies through the various formats of market participation helps the e360 Power team implement a multi-prong approach to risk management.
We believe hedge fund risk management is the primary building block to sustainable returns.
An extensive track history is achievable through active monitoring of market and other exogenous risk factors.