Risk Management

Managing Risk

Different Types of Risk

Managing risk and preserving capital for our investors are of primary importance to us. For this reason, we have developed a rigorous risk management framework monitoring various of types of risks, with the objective of keeping them within predefined limits.

Read below how we specifically manage each type of risk listed above

Market Risk

In order to control our market risk, our automated risk management technology periodically monitors the the volatility in our investment portfolio and rebalances accordingly to keep it within predefined levels set by the investment committee.

Credit Risk

In order to monitor our credit risk, our team periodically reviews our current counter-parties to make sure that our credit risk exposure is within predefined limits. In addition, we aim at establishing relationships with multiple counter-parties in order to mitigate our financial exposure to one particular entity.

Operational Risk

In order to minimize our operational risk, our team adopts a rigorous testing process of our technology and invests in new investment products by using proprietary capital for an initial period before the new investment product is offered to our clients. Since most of our investment technology is proprietary and developed in-house, we have full control and speed in case modifications need to done to our trading algorithms. In addition, our team periodically reviews our backup procedures and disaster recovery systems to minimize downtime in our investment technology and operations.

Liquidity Risk


We try to minimize our liquidity risk by investing the majority of our capital in public investment products traded on regulated exchanges, meeting certain criteria regarding liquidity and trading volume.

Margin Risk


In order to minimize margin and leverage risks, we require our clients to properly fund their investments in our funds by depositing enough capital to minimize margin risk.

Execution Risk

We try to mitigate execution risk by utilizing automated execution algorithms that try to capture investment opportunities as soon as they arise.

Asset Class Risk

We aim at reducing out asset class risk exposure by investing in multiple strategies and imperfectly correlated products covering multiple asset classes, including Equity, Fixed Income, Commodities, Currencies, and Volatility.

Sector Risk

In order to minimize sector risk, we have the objective of deploying capital globally on multiple asset classes and different equity sectors through a diversified portfolio.

 
 

Geographic Region Risk

In order to mitigate geographic region risk, we invest globally on multiple public exchanges and investment products across the world.

 
 

We value managing risk

Explore Risk Management

At Tadrus Capital we prioritize risk management. If you are an expert in this area we are always looking for more people like us. This skill is a very important one to have and we manage risk in every decision we make. Reach out to us, and we will get back to you shortly.