Why Prime |
Risk Management |
Prime Philosophy |
Our Team |
Investment Process |
Advisory Board |
Our approach to risk management is based on the philosophical premise that financial markets are constantly changing and that
no amount of historical information is sufficient to anticipate their future performance.
It is therefore necessary to maintain constant observations of market behavior as well as to make dynamic and time-sensitive
decisions regarding market risk.
At Prime the classical ideas of risk management are extended to include dynamic and adaptive measures for investment strategies
and to allow market changes to be accounted for on an ongoing rather than a static basis.
Our approach to Risk Management includes:
- Portfolio Construction and Rebalancing
- Constant leverage investments within specified levels of performance
- Volatility and returns targets
- The stop-loss overlay actively monitors daily levels of expected loss and maintains prescribed tolerances for each
programs draw down limits.
- Based on a value-at-risk approach, the overnight portfolio risk levels are limited to between 1% and 2% of market
investment level and with stop loss triggers determined by the overnight limits
- Profit taking is maintained for each investment program on the basis of the average historical profit levels achieved
by each program. Profit taking is therefore sensitive to the performance capabilities of each program and stop losses
are controlled through the level of allowable portfolio risk