Cantillon tests risk appetite

Mon Sep 1, 2003



William von Mueffling is challenging investor attitudes to risk on two levels. Firstly he is raising the issue of the right amount of risk that a fund should take. Many investors seem willing to accept more risk from the two new Cantillon funds than they are for most equity funds in their portfolio - judging by the $1 billion of assets that they are throwing at the double launch.

Secondly, he is questioning what is the right amount of risk for a manager to take with their own personal fortune in their own fund. Conventional wisdom suggests that they should invest a large part of their own liquid net worth, but is von Mueffling investing too much because of his own personal tolerance of risk?

There is no doubt that investors who used to favor 'low volatility' have now realized that it really means low returns and are looking at ways...

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