Risk control

No investment principle is more widely acclaimed than diversification. However, in our experience, too many investors are excessively diversified. This invariably leads to the dilution of investment results as the number of holdings increases and results trend towards the benchmark. We are proponents of genuinely active investment management approaches, we are not advocates of “closet-indexation”.

Stamford Associates are pioneers of the multi-manager approach. This concept is predicated upon the premise that each manager should construct a concentrated portfolio containing the best investment ideas only. Overall risk control is achieved by careful selection and combination of managers pursuing different investment disciplines.

The objective is to create a diversified investment structure for our clients that offers realistic scope to deliver material added value over time, belying the notion that low risk must result in low returns.

• Each manager should construct a concentrated portfolio containing the best ideas only. Overall risk control is achieved by careful selection and combination of managers pursuing different investment disciplines.