If You Say You’re Gonna Monitor Your Risk Daily, You Should Probably Monitor Your Risk Daily | Dealbreaker
Catalyst Capital Advisors told its investors that it had a dedicated risk manager. It told them that this dedicated risk manager monitored its risk metrics daily. It said that it had safeguards to prevent losses in excess of 8%. So when it lost 20% over the course of three months, it was either because that risk manager and those safeguards weren’t very good, or because they didn’t exist. Care to guess which one?
