Risk Management

We understand that preserving your wealth is just as crucial as growing it. With our comprehensive risk management strategies, we strive to provide you with peace of mind by navigating the complexities of the financial markets and safeguarding your wealth.

The Role of Risk Management

Preservation of Capital

Risk Mitigation

Diversification

Alignment with Investment Objectives

Our Approach

At Mahrt Investment Group, risk management is at the core of our approach. We embrace our fiduciary duty, holding ourselves to the highest standard of care. Our priority is to safeguard your capital while striving for optimal risk-adjusted returns tailored to your risk tolerance. With a commitment to comprehensive risk management strategies, we strive to deliver consistent, long-term performance while prioritizing your individual risk tolerance and financial goals.

Utilizing mean-variance optimization our risk management framework is designed to optimize the risk-return trade-off of your portfolio. Our approach combines a blend of active and passive strategies to manage market beta while reducing risk. We actively identify opportunities through security selection and tactical asset allocation, while passive investments provide broad market exposure and cost control. This balanced approach aims to strike an appropriate balance and enhance risk-adjusted returns.

Throughout our partnership, we continuously monitor and assess your risk tolerance, adapting your portfolio and risk management strategies to align with any changes in your financial situation or investment objectives.

Risk Tolerance

We believe that risk tolerance plays a crucial role in effective risk management. By conducting thorough assessments and in-depth discussions, we gain insights into your comfort level with risk and your financial goals. This allows us to tailor our investment recommendations and portfolio construction to align with your individual risk profile. Through ongoing dialogue and monitoring of your risk tolerance, we can adapt your portfolio as needed, keeping it in line with your evolving needs and market conditions.

Risk Assessment

Our risk management approach incorporates a combination of qualitative and quantitative methods to analyze various types of risks. We assess market risk, credit risk, liquidity risk, and operational risk using historical analysis, scenario modeling, stress testing, and sensitivity analysis. By identifying and quantifying risks, we can make informed decisions and implement effective risk mitigation strategies. Our risk assessment process is dynamic and regularly reviewed to ensure its robustness in the face of changing market conditions and evolving risk landscapes.

Diversification

Diversification is a key component of our risk management strategy. We understand the importance of spreading investments across different asset classes, sectors, and geographic regions to potentially reduce risk and enhance portfolio stability. Through careful analysis of investment correlations, we construct well-diversified portfolios that aim to mitigate the impact of any individual investment’s performance. Our ongoing monitoring and periodic rebalancing ensure that diversification remains optimized, aligning with your risk tolerance and market conditions.

Liquidity Management

Effective liquidity management is crucial for risk management. Ensuring that sufficient liquidity is available to meet financial obligations and unexpected expenses can help mitigate the risk of forced selling during market downturns or emergencies. We incorporate liquidity considerations into portfolio construction, allowing for flexibility and ensuring that your portfolio remains liquid while managing risk effectively.

Rebalancing

Rebalancing is a key aspect of risk management within our investment portfolios. As market conditions and asset prices fluctuate over time, the original asset allocation of the portfolio may deviate from its intended target. This deviation can lead to an imbalance in the portfolio’s risk exposure. By implementing a disciplined rebalancing strategy, the portfolio is periodically adjusted to bring it back to its target allocation. Rebalancing involves selling assets that have performed well and have become overweighted and buying assets that have underperformed and have become underweighted. This process helps to restore the desired risk profile of the portfolio.