Risk Management has become the latest “buzz-word” in the industry with many touting it as part of their investment services despite having little to no actual procedures in place.

In our view, there are strategies out there that offer better alternatives to meeting a more realistic return versus risk objective.

One of the key differentiating factors of TriVest is our Option-Overlay strategy. We have found it to be a great tool for market timing, absolute return generation from option writing, and risk-management such as hedging to protecting gains from large downward moves in the market. Our primary focus is to rack up as many “base-hits” as possible rather than take big swings and try and hit “home-runs” in our option positions. 

There are numerous option strategies available to add value when utilizing an option overlay in conjunction with a model equity portfolio.  Some are relatively complex with multiple option contracts at different strike prices and dates while some are quite straightforward and easy to understand.

Lastly, in our energy fund we at times may utilize other risk management strategies such as long-short pair trades, commodity and currency arbitrage etc.

We have written some TriVest Snapshot pieces explaining how risk-management is integrated into investment process. Due to the proprietary nature of this process, please contact us directly if you would like to receive further information.