Fauchier Partners has an aggressive approach to risk-taking to keep exposures on track
Thu Feb 3, 2011
Focused portfolios coupled with high-quality reporting have helped the firm build a solid performance record over the past few years
By Claire Makin
In recent months, Fauchier Partners has been keeping a close
watch on its managers for signs of faint-heartedness. The
danger is that managers fail to back up confident talk of
investment opportunities with actual exposures in their
portfolios, Clark Fenton, chief executive officer, points out.
"In today's market environment, one of the great challenges is
making sure people are taking enough risk, and enough of the
right kind of risk," Fenton says.
Fenton and his colleagues care about this, because they run
relatively concentrated portfolios where each manager has been
selected to do a particular job. If risk needs to be reduced,
he and his team will change the fund mix or add to value-added
'insurance' strategies. This way, they keep a tight grip on
Fauchier Partners' $8 billion in assets under management is
invested with only 70 or so underlying managers
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