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.
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 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.