At Octane, risk analysis is an integral part of our ongoing investment process. We reduce risk through diversification across investment markets, managers and strategies and control risk by clear investment mandates from clients, as well as with the underlying managers of our building blocks. At Octane, we aggregate exposure across all investments within a tailored solution.

Risk management is an essential part of our portfolio construction process and includes risk measurement, risk monitoring and ongoing risk supervision that is implemented through our ongoing interaction with clients.

For risk management to be effective, core to the process is the measurement (the science) and the interpretation (the art) of the risks in the underlying hedge fund portfolios. It is imperative that we select the correct measurements to asceratin the various types of risk facing a portfolio and to understand how these risks are aggregated in the overall portfolio. The common measures of risk used by the traditional investment industry - and most consultants - fail to accurately measure fund of hedge funds risk and can lead to misinterpretations that could potentially result in negative outcomes for portfolios and for clients.

We understand that risk is both quantitative and qualitative in nature and hence, equal attention is paid to both. In addition to investment risk, we also research, monitor and manage business and operational risk.