Risk Management

Capital preservation and risk management are the foundation of the Auspice approach. Our systematic methods are integrated into our capital allocation model and into the processes that we use to manage risk. We don't believe that risk is something to be avoided, on the contrary, we believe that appropriate levels of risk should be targeted. 

Careful consideration and analysis goes in to determining the portfolio risk. Monte Carlo stress testing and drawdown analysis is conducted to understand the probability of large drawdowns.

Before any position is taken, we evaluate the risk-reward probabilities on a portfolio, sector, and individual market basis. When a position is entered, a stop loss order is entered simultaneously, to ensure that the risk to the downside is limited to a predetermined level. Position sizes are adjusted dynamically as risk changes.