Thunder’s risk management efforts are directed toward controlling both stock-specific and market risk. These include:

  • Extensive use of technical analysis in all aspects of portfolio management from stock picking to top-down sector analysis and decisions concerning entry/exit points.
  • Comprehensive 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 efforts.
  • Controlled 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.
  • Diversifying 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.
  • Parameters 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.
  • Active hedging at both position and sector level is utilized to reduce risk and keep the funds within their target risk parameters.
  • Proprietary options strategies are utilized to both reduce portfolio risk as well as generate incremental profits.

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