Risk Constraints
Portfolio risk constraints are designed to ensure portfolios have a balance between risk and reward.
The Atom Small Cap Fund has the following constraints:
- A limit on the number of different stocks held:
- Minimum - 25
- Maximum - 75,
- A general limit on the holding of the outstanding listed shares of a company -5%
- No more than 10% of the Fund will be invested in any one stock.
As a final check the portfolio is analysed to determine differences against its benchmark index. Differences highlighted include:
- Individual stock positions
- Industry exposure
- Small or micro capitalisation bias
- Value, growth or NPV bias
