A robust risk framework underpins every investment decision. While our focus is on long-term capital appreciation through the power of compounding in equities, we recognize that compounding only works if capital is preserved during periods of stress. To this end, we conduct rigorous stress testing and scenario analysis to model the potential impact of diverse macroeconomic shocks — from sudden policy shifts to geopolitical escalations or liquidity squeezes.

Our framework looks beyond short-term volatility, aiming to distinguish between temporary market dislocations and true impairment of intrinsic value. We monitor concentration risk, balance sheet strength, earnings quality, and sector cyclicality to ensure portfolios remain resilient across multiple market regimes. By combining quantitative safeguards with qualitative judgment, we seek to mitigate downside risk without compromising the opportunity for sustained growth. This disciplined approach allows us to remain invested with conviction, protecting the compounding process that drives long-term wealth creation.

In addition, risk oversight is embedded at every level of our process. Portfolio construction incorporates diversification thresholds, liquidity screens, and drawdown controls, while ongoing monitoring ensures that exposures remain aligned with underlying fundamentals rather than market momentum. Governance is reinforced through independent review and adherence to firmwide risk limits. Taken together, these layers of discipline provide a strong foundation for consistency and durability, enabling us to pursue equity compounding strategies with confidence across market cycles.