At GFM, the identification, measurement, and control of risk are central to our investment process.
A focal point of our research and development involves identifying the risks that bear compensation (beneficial risks) and calculating a mathematically optimal amount of these risks to assume, while avoiding risks that exhibit low probabilities of being justified by superior returns (detrimental risks).
Our investment strategies are engineered to mitigate losses and preserve capital through challenging market environments and volatility regimes.
Proprietary, statistical and optimization techniques are employed at every step in our security selection and portfolio construction processes. Our investment models do not select portfolios that are forecast to produce high rates of return and then apply risk constraints as an overlay or afterthought. Rather, risk and return are scientifically evaluated in concert, which leads to greater consistency and stability over time.
We strictly adhere to clearly articulated, conservative guidelines and constraints in terms of diversification, liquidity, market exposure, sector exposure, and leverage.