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Abstract
Pat Welton of Welton Investment Corp said that the balance between performance and volatility/risk is inherent in their investment approach. For many styles of investment, this is a continuous challenge that relies on the personal discretion of individuals and most often after the investment has been made. They invest differently. They employ deep systems to signal their edge opportunities and they define edge as the ratio of return potential to perceived risk. To them, volatility and risk are an integral part of the return potential assessment and they commit capital only when they think the return/risk ratio is most in their favour. Simon Thorp of Avoca Capital said that an important principle in running their funds has always been to optimise returns from a risk-adjusted point of view while keeping volatility low. They balance performance versus risk by calculating the expected annualised return of every position at the point of execution.