Sentences with phrase «of risk control»
Recently, institutional investors with long - term investment horizons have responded with aversion to market volatility by considering a number of risk control strategies.
indexologyblog.com
When building a portfolio, multiple levels of risk control are employed with the objective of achieving alpha with the lowest possible tracking error.
You took too much risk, because the first priority of risk control is liquidity management.
You also have a certain degree of risk control, since your maximum risk is capped.
Almost every action of risk control involves limiting the behavior of those that have the power to commit money for investment or to sell assets to raise cash.
If you are investing, choosing assets to buy is the most important aspect of risk control.
Additionally, since diversification is such an important component of risk control, I present these research candidates in order by sector.
The most basic rule of risk control is to diversify your investments.
The insanity is that the full documentation rule goes well beyond the needs of risk control.
That involves instilling the idea of risk control in every person if the firm — making it a part of the firm DNA.
A prudent word of warning: this portfolio promises to be volatile, so make sure that you have stop losses in place or some other form of risk control, particularly in the 40 % of the portfolio allocated to tactical positions.
In a bust, all risky assets become highly correlated with each other, invalidating ideas of risk control through diversification.
The «rest of the company» had this type of risk controls in place, but the firm «didn't have it in the CIO area and that's what caused the problem.»
* Note *: Experienced gamblers might use a variation of a Martingale or «chase» systems — but will always have some sort of risk control in place.
«There's probably a correlation to the fact that people are traveling more,» said Scott Humphrey, second vice president of risk control for Travelers.
«The unfortunate part about this, the part we can't escape, is that once the information is gone, it's gone,» Paul Viollis, CEO of Risk Control Strategies, told CNBC in an interview.
Find out how MEMBERS products and the value of risk control can work into your sales strategy and help you plan successful retirements for your clients.
The time to buy a company in any industry is when it is out of favor; as a matter of risk control (and humility) the companies to buy when an industry is out of favor are those with financial slack.
We believe that this type of risk control provides investors with a much less stressful investing experience and helps them to stay invested for the long run; one of the key success factors for investing.
Ratings - Based Pricing and Stochastic Spreads by Mariam Harfush - Pardo of Risk Control Limited Robert Lamb of Imperial College, and William Perraudin of Imperial College (292K PDF)-- 33 pages — September 2007
That's the thinking that got us into this mess, and is what makes risk management so tough, because the short run need for profits always leads to a diminution of risk control.
The bias of the economists was «You have to take more risk to get more return,» when the reality is that taking more risk to get more return works up to a point, and after that, those buying volatile stocks, bonds, etc., are trying to hit «home runs,» and have lost track of risk control.
As for SocGen, leaving aside their chaotic conference call, I would simply point out that it is a pretty colossal failure of risk control to allow anyone that much power inside their firm.
Contributing to the risks include easy monetary policy, which can lead / has led to the neglect of risk control.
I believe in the value of «long only» money management as having better chances of risk control than hedged strategies, but this is making me queasy.
All in all, in terms of risk control, diversification & other attractive opportunities, I suspect equities will probably never exceed a 50 - 60 % total allocation in my portfolio, even at my most bullish.
Okay, two more if you are a glutton for this kind of stuff: Liquidity Management is the First Priority of Risk Management, and The First Priority of Risk Control.
The math of risk control wars against them.
The head of change management and head of commercial management are joined by a COO responsible for strategy and the financial performance of the function, plus a head of risk control whose remit is to ensure the function meets the bank's policies and controls.
In closing, I believe that ARCP and Realty Income have one thing in common (investing in net lease assets), and the differences are most visible as we compare the two book - ends of risk control.
Of course, their increasing funds & institutionalization will inevitably compress their returns, caused by their size & increasing level of risk control.
Well my idea of risk control is a little non-conventional.
As a form of risk control, the portfolio construction process is designed to penalize high volatility in stocks and avoid excessive concentration in single sectors of the market.