The strategy’s process is centered around top-down analysis that allows us to develop views across asset classes by focusing on three distinct drivers of risk and return: macro regimes, the risk environment and valuation. Based on these views, we then seek to benefit from short-to medium-term market opportunities by allocating across a variety of asset classes via the firm’s bottom-up actively managed strategies. We continuously monitor the portfolio’s positioning and actively manage risk by employing a variety of hedging strategies.
Financial markets regularly deliver surprises, unanticipated events and reactions that can create near-term havoc, as well as near-term opportunities. To prepare for the unexpected, we seek to actively manage risk. To manage risks in the Portfolio, we regularly perform stress tests and scenario analyses to identify potential vulnerabilities.