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RiskDiligence

DueDiligence. RiskManagement. Combined.

Applying Castle Hall's "Diligence Only" model to investment risk.

The amalgamation of SwissAnalytics with Castle Hall has enabled the combined firm to extend its due diligence approach to the analysis of investment risk. The firm’s “Diligence Only” model frees Castle Hall from the conflicts of interest which can arise in a traditional investment consulting model, where consultants typically recommend managers from their buy list - and are selected, retained and paid based on generating performance.

RiskDiligence offers a differentiated approach which has been warmly received by a growing client base.  RiskDiligence does not emphasize reasons that may cause investment strategies to perform in line with expectations - or justify why a Manager is expected to outperform as a “buy” recommendation.  RiskDiligence is principally interested in reasons that could cause investment strategies to perform below expectations.

  • Investment professionals use Castle Hall to generate a detailed due diligence report when a manager is proposed for investment. With RiskDiligence, each investment recommendation is supported with consistent and detailed analysis and documentation. This saves valuable time and helps investors meet regulatory and internal / external stakeholder documentation requirements. Once invested, RiskMonitor enables investment professionals to move up the value chain and action exceptions to monthly and quarterly performance analysis, rather than focus on gathering raw risk information.
  • Governance, risk and compliance professionals are empowered by the independent and objective data contained within each RiskDiligence report, which includes a detailed quantitative analysis of return drivers. For institutional Boards of Directors and Trustees, an independent and informed risk function helps discharge fiduciary obligations and meet regulatory requirements.

 

RISKREVIEW

RiskReview provides our assessment of the strengths and weaknesses of the investment process and our overall risk and investment diligence opinion.

RISKMONITOR

RiskMonitor enhances investors’ confidence in a fund’s initial RiskProfile by validating ex-ante expectations about its investment approach against realized and verified data.

RiskReview

Independent Validation of the Investment Process.

RiskReview corroborates the manager's investment mandate across multiple dimensions. Each RiskReview evaluates the investment approach, the investment process and risk management across a proprietary, 20 factor risk matrix.


RiskReview includes RiskAnalytics, our quantitative reference pack, confirmation of key data points (portfolio holdings, position size, and track record), and an In-depth review to evaluate the strategy and the manager’s investment decision making process and risk management policy and infrastructure.

RiskMonitor

Validating Expectations With Facts.

RiskMonitor combines quantitative analysis (for example by testing for statistically significant factor exposures) with monthly review and analysis of investment performance and related manager commentaries.

RiskMonitor allows investors to reduce the information disadvantage by continuously validating the investment mandate with the most recently available data. Additionally, RiskMonitor enables investment professionals to move up the value chain and action exceptions to monthly and quarterly performance analysis, rather than focus on gathering raw risk information.

Castle Hall also provides the resources and bandwidth to systematically gather risk information across even large portfolios.

Learn More About RiskDiligence

Contact us to learn more about how Castle Hall can help enhance your investment and risk management due diligence program.
 
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