risk management efforts are directed toward controlling both stock-specific
and market risk. These include:
use of technical analysis in all aspects of portfolio management from
stock picking to top-down sector analysis and decisions concerning
fundamental research is used in conjunction with technical analysis
to identify mis-priced securities. Thunder also maintains a deep network
of brokers, analysts and industry contacts to complement its research
position sizes (which vary by fund) are key to managing overall portfolio
risk. Core positions - both long and short - are generally deployed
conservatively and “traded around” to capitalize on incremental
news and opportunities.
across sectors and market capitalizations is key to managing a hedged
portfolio. While certain investment themes play out during different
market cycles, Thunder generally maintains significant exposure across
various sectors in an attempt to avoid over-concentration in any one
sector, except in unusual circumstances.
for gross and net sector exposures are maintained as dictated by the
particular fund’s strategy. Exposures are actively adjusted
based on the manager’s best risk/reward outlook.
hedging at both position and sector level is utilized to reduce risk
and keep the funds within their target risk parameters.
options strategies are utilized to both reduce portfolio risk as well
as generate incremental profits.