Funds of Hedge Funds

Avoiding risk is key to Stenham's success

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Stenham Asset Management owes a great deal of its success to keeping out of trouble – specialising in consistent returns with low volatility

By Claire Makin

Stenham Asset Management owes a great deal of its success to keeping out of trouble, says Kevin Arenson, chief investment officer of the $3 billion fund of hedge funds operation. His mantra is that avoiding risk is just as important as achieving returns.


Kevin Arenson


For Arenson, risk does not mean degrees of volatility. Risk means the potential to lose money, and Stenham relies on a wide array of tools to identify it, from quants crunching numbers to a simple hunch that something is just not right with a manager or a market.