At the core of all our investment activity lies our IP. This proprietary system with academic underpinning integrates ‘return’ and ‘risk’ in a coherent fashion, allowing for differences in market efficiency between various (niche-) markets across the globe. We follow an active risk management approach, meaning that we are not afraid of risk.
We will however demand a more-than-proportional pay-off when taking more risk. Not surprisingly, taking into account our collaboration with Nobel Prize Laureate dr Markowitz, ‘diversification’ plays an integral role in our risk management as well. We are confident about our skills, and those of the best-of-breed investment managers we hire, but we do also remain humble: outperformance is possible, but never easy. And when in doubt, we simply refrain from investing.
One of our core investment themes is ‘the Changing World’. We incorporate this in our investment approach by picking the investment that scores best on our Sustainability theme when having to pick from two opportunities that are comparable in terms of risk-adjusted return perspective.