Risk Management & Resilience
Risk Philosophy: Capital Preservation Priority
VMC embeds risk management directly into the portfolio construction process. We focus on achieving a stable, verifiable return profile through rigorous pre-trade analysis, rather than solely post-trade mitigation.
The Six-Step Closed Loop
Our entire investment life cycle operates under the “Research—Modeling—Portfolio—Trading—Risk—Review” six-step closed loop. The Risk and Review stages constantly feed back into Research and Modeling to adapt dynamically to new market information.
Advanced Modeling and Dynamic Budgeting
We employ advanced metrics beyond standard deviation, including Historical VaR, Monte Carlo VaR, and Expected Shortfall (ES), alongside dynamic Drawdown Control Bands. Our Dynamic Risk Budgeting (DRB) adjusts exposure levels and hedging ratios in real-time based on system-wide stress levels and volatility clustering detection.
The Risk Playbook
We maintain scenario-specific contingency plans for systemic risks, such as rapid credit widening, liquidity contractions, or geopolitical shocks. This involves pre-defined “Kill Switch” triggers and pre-mandated trading lists to ensure swift capital preservation actions.
Compliance & Audit
As an SEC-compliant entity, we adhere to the highest standards of governance and transparency. All client assets are subject to strict Segregation of Client Funds protocols, and our internal audit trail ensures granular tracking of every trade and risk event.