Portfolio risk is managed through diversification, position sizing, position structuring, and hedge overlays. We focus on building a portfolio of idiosyncratic risks while minimizing correlation with traditional asset classes and emphasizing capital preservation. Leverage is rarely used. We utilize a number of tools, including stress tests and scenario analysis, to assess broader risk exposures and beta sensitivities.
A dedicated Chief Risk Officer operates independently and reports directly to the CIO. Courage employs a comprehensive risk management approach that addresses portfolio, counterparty, compliance, and operational risks firm wide.
Courage Capital is a Registered Investment Advisor with the Securities Exchange Commission. The cornerstone of our compliance program is the comprehensive Compliance Manual which includes detailed policies, procedures, and monitoring guidelines.
Courage has made a significant investment in leading front-middle-and back-office technology platforms to support our experienced operations team.