Investment Management is Risk Management– Nothing More and Nothing Less

Critical Perspectives, No. 8, June 2011

https://doi.org/10.3905/jwm.2011.14.3.010

Posted: 20 May 2019 Last revised: 23 May 2019

Date Written: June 18, 2011

Abstract

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.

Keywords: risk management, risk-return trade off, tactical asset allocation

JEL Classification: G00, G11

Suggested Citation

Klement, Joachim, Investment Management is Risk Management– Nothing More and Nothing Less (June 18, 2011). Critical Perspectives, No. 8, June 2011. Available at SSRN: https://ssrn.com/abstract=2086214

Joachim Klement (Contact Author)

Fidante Partners ( email )

1 Tudor Street
London, EC4Y 0AH
United Kingdom
02078320956 (Phone)

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