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view risk as the permanent impairment of capital.&nbsp;To manage this risk, we employ four main strategies:&nbsp;\u003C/p>\n\u003Ch3>Start with an Excellent Foundation:&nbsp;Culture&nbsp;and the Decision-Making Environment&nbsp;&nbsp;\u003C/h3>\n\u003Cp>We believe a significant risk exists when&nbsp;ideas&nbsp;which may have the potential to preserve&nbsp;client capital&nbsp;are left unexpressed or unacknowledged. To harness a&nbsp;diversity of perspectives, we cultivate&nbsp;an&nbsp;environment that is open, candid, respectful,&nbsp;and free of hierarchy.&nbsp;It’s&nbsp;our belief that this type of culture encourages our team members to&nbsp;contribute&nbsp;more freely and fully&nbsp;to the decision-making process.&nbsp;\u003C/p>\n\u003Ch3>Focus on the Fundamentals:&nbsp;Security Level&nbsp;\u003C/h3>\n\u003Cp>We believe&nbsp;that&nbsp;systematically following&nbsp;our&nbsp;investment&nbsp;philosophy and process&nbsp;is&nbsp;essential&nbsp;in reducing&nbsp;overall risk. In other words, starting with only high-quality companies that are resilient and by being disciplined on the price we pay for them. There are no shortcuts.&nbsp;We follow a rigorous process to evaluate critical sources of information—from scuttlebutt to&nbsp;forensic accounting to&nbsp;delta report—striving to leave no stone unturned.&nbsp;&nbsp;\u003C/p>\n\u003Ch3>Protect us from Ourselves:&nbsp;Portfolio Level&nbsp;\u003C/h3>\n\u003Cp>At the portfolio level,&nbsp;we diversify our holdings&nbsp;to ensure resilience&nbsp;and&nbsp;impose&nbsp;constraints on&nbsp;each&nbsp;strategy,&nbsp;restricting&nbsp;single security and industry weights.&nbsp;&nbsp;\u003C/p>\n\u003Ch3>Consider the Big Picture: Systemic risks and themes\u003C/h3>\n\u003Cp>While the majority of the investment process is bottom-up in nature, building resilient portfolios requires an awareness of the macro backdrop. Our weekly risk management meetings, our open culture, and our semi-annual risk management report all seek to promote situational awareness, highlight thematic or macroeconomic exposures, and determine if there is any unintended exposure that requires addressing.\u003C/p>","Risk Management",false,{},1775079586701]