Risk Management
Integral to the Investment Process
Risk Management is integral at each step of Dorchester's investment process.
Dorchester commits two teams to the due diligence effort-investment and operational due diligence-that performs separate on-site visits to potential hedge fund managers.
The Investment team performs an assessment of the portfolio and security-specific risks of fund managers. The Operations team performs its assessment of the systemic and operational risks of fund managers. Both teams report to Dorchester's Investment Committee, and the Operations team retains a right of veto for operational concerns.
Dorchester's Research team performs ongoing risk management by monitoring underlying hedge fund investments. This includes regular attribution, in addition to fund- and firm-level analysis, and Dorchester's in-house risk analytics. If an adequate level of risk control is lacking through diversification, Dorchester may employ a hedge overlay program to curtail large, systemic market risks.
