Demi, the dealer and doubling down: How is your Manager looking after risk?

Chad Slater

Ellerston Capital

Warning: this is a geeky post. This week we aren't discussing market movements nor another post on Woolworths (there's a opposing view on Livewire to read - that's what makes a market). No, this is a post on the mundane yet esoteric world of risk. It's a favourite interview question in the industry to ask someone how they define risk, knowing that there isn't a set answer. Morphic spends a lot of time discussing risk and we are proud of the unique embedded risk processes we have developed, but clients often ask us why do we care so much. This piece is an attempt to explain what we characterise as risk; how it relates to returns; and provide an current example of what we think is a 'sub-optimal' risk management process. We've tried to make it as readable and 'jargon light' as possible, but would still advise against reading it before bed! (VIEW LINK)


Chad Slater
Co Head Global Equities (ex-Asia)
Ellerston Capital

Chad co-founded Morphic Asset Management in 2012. As a stock picker Chad is also a generalist but has strong regional knowledge of Europe and the Americas. He has also been awarded the CFA Charter.

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