Managing Opportunities and Risk
Deep expertise built on decades of experience
Risk management is a critical component of successful portfolio management. At HMC, we integrate risk management into the fabric of our investment strategy to protect the assets that we manage for the University. Both management and the Board devote substantial staff, time and attention to managing the complexities that relate to the risks inherent in our portfolio.
Multiple forms of risk exist in any sophisticated investment strategy: market risk, leverage, counterparty risk, and illiquidity. HMC continually reviews and revises the analytical functions by which we measure and control risks in the portfolio. Continuous improvement in risk management is critical in what remains an extremely volatile environment.
The risk tolerance of the University is a key component in our portfolio construction. HMC works closely with the University to understand appropriate risk parameters and align the endowment's risk/return profile with the University's goals and needs.
