Our mission is to manage the inherent risk, and the rewards, in the financial markets for institutional investors. Achieving this outcome occurs by identifying and linking the key risks across the enterprise, the investment portfolio, and the economic environment. Designing the asset allocation produces an implementation meeting the investment objectives while managing for all the possible outcomes. Through the process, we manage to capitalize on risk.
Capital Risk Management LLC delivers results within a well-articulated risk profile, deploying innovative methods in portfolio design, asset allocation, and economic forecasting. Two decades of successfully managing billions of dollars in global multi-asset portfolios enable implementation for every portfolio size. Extensive professional insight across all investment paradigms ensures that the path we take is the one that leads to your success.
WHAT WE BELIEVE
Capital Risk's goal is to support the endeavors of its current and future constituents through the preservation of current capital in real terms while growing over the long run. Achievement of this goal requires an investment framework to allocate current capital in the presence of uncertainty to generate future cash flows.
Capital Risk believes that there are three ways to generate sustainable tax-efficient after-inflation returns in a risk controlled manner within our constraints.
I. Invest in people and partners with deeply specialized knowledge
Knowledge and experience are hard earned. No one can be everywhere, no one can know everything or everyone. The dual realities of time and capital efficiency preclude the prior outcomes. We prefer knowledge and experience because most investors do not have the time or the resources to do the work required. We do our own work and we insist that our partners do so as well. Whether it is investing in the potential of venture capital, relegated real estate, or the enhancement of operational efficiency with private capital, these outcomes requires people with deeply specialized knowledge to envision the overlooked value. We invest in talented people to enhance our knowledge, business, and investment returns.
II. Own businesses that enhance capital productivity
Do more with less. This is the story of capital efficiency. Over the last 200 years, humanity has unleashed its potential and seen quantum leaps in global living standards. This outcome is in part due to the ability of business to meet increasing demand with fewer resources. The incentives in a competitive market allow the best ideas and the most efficient operators to thrive. We own businesses with sustainable products or services, who allocate capital efficiently, and occupy a competitive position that permits further growth. Since change takes time, our capital is patient. We wait to buy when value is overlooked and we wait to sell until they are priced to perfection.
III. Allocate capital when market uncertainty is greatest
Risk is opportunity. When the value of assets is at their most uncertain, we venture forward. Capital markets are the most efficient means to allocate capital; however, this does not imply they are perfect. They are at times euphoric and at other times despondent. We are neither. We believe in people and their willingness to grow. We know in the long run the trajectory is up, even if our strategic intent may temporarily drift off course. We will forgo the fashion of the moment, sometimes at significant short-term opportunity cost. We will, when the sale begins, buy enduring ideas of compelling value. Investing is, in the final analysis, the ability to make decisions in the face of uncertainty, so we invest by managing risk. While there is no certainty to the future, the consistent application of a coherent investment philosophy will ensure that we have the discipline and the ability to act when opportunity arrives.
Capital Risk Management LLC (Capital Risk) delivers institutional investment management results by focusing its deep capabilities on linking enterprise risk and the investment program into a coherent strategy for the business.
Dr. Jason Prole leads Capital Risk as its principal. Jason leverages his twenty years of experience investing multi-billion dollar global portfolios and leading business enterprises from start-ups to multi-nationals. Complementing this experience are insights from his numerous professional associations, including the CFAI, MTA, GARP, CAIA, and NABE. Jason holds a doctorate in finance and earned graduate degrees in politics, economics, and strategy.