Portfolio Management & Risk Monitoring

Risk Monitoring

Quantifying and understanding risk is a crucial pre-requisite to managing risk


Sivik has developed robust risk management systems to actively monitor exposures and incremental risks

Individual Positions

  • Monitored closely for changes in fundamentals and market conditions
  • Limit individual stock position to 7%; rarely above 5%
    –Avoid taking filing positions
    –Monitor liquidity and short interest on all positions
    –If individual stock position is down 25%, formally reassess investment thesis
    –Limit downside risk in binary events through use of options
  • Non-US investments are usually held in local currency with a corresponding offsetting FX hedge to avoid currency translation volatility.

Market Exposure

  • May take up exposure intra-month, typically reduce exposure at month end
  • Biotechnology exposure limited to 25% (net) due to high beta of sector
  • Track beta carefully to avoid mismatch
  • Manage sub-sector exposure on a top-down basis

Actively trade around core positions to add incremental alpha