We build and offer investment portfolios designed to minimize the risk of large losses, as required by ERISA. We continually evaluate market actions that could trigger large losses–and we rebalance based on those market actions.
Our principal focus is understanding and managing liquidity risk. Liquidity failure is the one failure that a portfolio, company–indeed, an economy–cannot long survive. From am ERISA standpoint, to “minimize the risk of large losses” is to carefully manage liquidity risk.
We take issue with the prominent active managers who put pension money at liquidity risk, without disclosing to plan participants that they are doing so. Our market INSIGHTS identify these opaque practices and offer guidance for minimizing the risk of large losses–while building profits in a volatile market.