Our investment goal is to deliver long-run real returns in excess of the risk-free rate on a risk-adjusted basis. Risk-adjusted, to us, means taking drawdown risk into account, as this is of cardinal importance. Our thinking in times of uncertainty is to err on the side of caution, which means we would focus on controlling downside risk at the expense of return.
We could thus be arguably labelled as defensive investors, placing emphasis on capital preservation at the expense of seeking risky returns near the top of the cycle. This means trying to avoid the big pitfalls, to avoid the big mistakes. Expressed differently, it is important that the portfolios we manage do not give back gains symmetrically when the market turns down.