Risk Philosophy

Eagle Stark Regal Asset Management (ESRAM) understands that in traditional money management, much deliberation is given to the notion of managing risk. Investors have become accustomed to believing that mutual funds and other such securities can minimise risk and still provide returns comparable to the main market indexes.

There is, however, a basic shortcoming with this rationale – risk is more of a perception than a number. Any attempts to manage risk will have restrictive consequences on the potential returns that can be expected in a portfolio.

Rather than being a reaction to the notion of risk, the main emphasis when investing should be on having a thorough appreciation of volatility and taking it into account before making investment decisions. It is often the case in contemporary portfolios that over-diversification is used as the preferred strategy to minimise risk. This method looks at past volatility and seeks to match acceptable benchmarks which, more often than not, lead to indifferent results.

Developing portfolios in a way that takes volatility into account at ESRAM means we need an alternative approach and to make sound choices. We’re inquisitive in our analysis of the world economy, innovative when pinpointing opportunities, meticulous in our research and deliberate when investing.

ESRAM concentrates on what we fully understand, looking beyond traditional thinking and acting as considerate and dynamic managers of each investment and transaction.