Risk Management

Risk management is an essential part of Focus AM's investment process. It plays a key role in both our assessment of individual companies, and the construction of our portfolios

Focus AM definition: risk is the potential of a durable and meaningful loss in current or prospective capital, on both an individual company and portfolio level.

Two types of factors lead to lasting and meaningful losses / missed opportunity:
  • Specific / company factors (also called unsystematic, idiosyncratic or diversifiable risk)
  • Aggregate / market factors (also called systematic / systemic or undiversifiable risk)