Is our portfolio built to take the appropriate level of risk and how much would we lose in the worst times?
Most institutional investors and their consultants rely on their managers’ track record to assess the level of risk they are taking, but as has been shown many times in financial markets, past performance can be a poor predictor of future downsides. There is a particular risk that all managers will correlate when you most need them to diversify.
Can anything be done to help?
Bfinance’s forward-looking risk analysis techniques have been designed to address these issues. We will assess the risk in your portfolio with less reliance on past history. We will also but also tell you how likely your managers are to correlate in future crises. This will give a more accurate estimate of your worst-case return.