Portfolio Risk Management
The art of balancing risk with return.

Taking the extra time to be extra sure.


When we design portfolios, we’re working to balance your exposure to risks with your potential for returns—all within the context of your institution’s goals. One of the best ways we can do this is by simply knowing and understanding our managers: the composition of their portfolios, how managers interact with each other, and how they behave in and/or respond to changing market conditions. If you were to speak to them, we believe our managers would tell you that we know their firms and their portfolios as well as or better than any of their partners. This is not by accident. 

Our approach to measuring, monitoring, and reducing risk is focused on three variables:

Market risk
Our starting point is always the investment policy statement, which governs fiduciary oversight and asset management issues. We review this statement on a regular basis to ensure its continued alignment with your organization’s requirements and risk tolerance. Over time, we monitor exposures and correlations, and we rebalance as necessary.

Manager risk
Diversification and due diligence are the two best ways to control manager risk. We develop long-term relationships with investment managers and evaluate how well their teams, culture, and incentives support positive performance.

Liquidity risk
First and foremost, we ensure that each client’s external liquidity needs are aligned with their investment portfolio’s underlying liquidity. Second, we analyze the internal liquidity of investments individually and then at the portfolio level. To support your future cash needs, we construct detailed liquidity forecasts and models.