Investment Management is Risk Management– Nothing More and Nothing Less
Wellershoff & Partners Ltd.
June 18, 2011
Critical Perspectives, No. 8, June 2011
In this paper we argue that investors and investment managers make a mistake if they try to focus on achieving high returns or high risk-adjusted returns and are likely disappointing investors in the long run. Instead, we argue that investment management should focus almost exclusively on managing the risks of an investment portfolio; above average returns will be a natural outcome of a proper risk management process. We describe the key risk management steps and why we believe this process leads to superior investment performance.
Number of Pages in PDF File: 9
Keywords: risk management, risk-return trade off, tactical asset allocation
JEL Classification: G00, G11Accepted Paper Series
Date posted: June 18, 2012
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