Liongate believes that risk management is an integral part of the investment process. As such, the firm has established a Risk Management Unit to support the Investment Team. It is responsible for analyzing and monitoring the qualitative, quantitative and operational risk of underlying managers in the portfolios.
The Risk Management Unit aims to strategically manage risks of the portfolio through disciplined and rigorous approach, in order to generate a superior risk-adjusted return throughout a multiplicity of market scenarios.
The Unit has developed advanced and practical systems to identify and monitor market sensitivities and risk-return drivers of underlying managers, which later are aggregated at the portfolio level using sophisticated approaches. Fundamental to risk management is the adherence to principles of transparency, liquidity and diversification at the portfolio level, which guides the portfolio construction.
An active and well-structured risk management process minimizes portfolio risk and provides the groundwork for superior returns.