Risk Management

Company Risk

  • Not taking exposure to more than 10% of the portfolio at given point in time.

Valuation Risk

  • Margin of safety; Paying less than its intrinsic value; Exit when trades more than 3x SD of historicals.

Market Risk

  • Sector concentration not more than 30% in any single sector.

Liquidity Risk

  • 90% of the portfolio can be liquidated in 2 days without much impact cost.

Concentration Risk

  • Portfolio diversification with 40 stocks.