Artful Questions. Scientific Solutions.

 

Capital Risk provides global investment advisory and risk management solutions for institutional investors, advisors and high-net-worth individuals. We are Return Focused. Portfolios are Risk Managed.

OUR PROMISE

 

Our mission as a comprehensive investment advisor for sophisticated investors is to deliver the tax-efficient return while managing the financial markets' inherent risk. We achieve this outcome by identifying and linking the investor or enterprise's critical risks, the investment portfolio, and the economic environment. Your unique investment strategy focuses on the attainment of your investment objectives while managing all the foreseeable outcomes.Through the process, we manage to capitalize on risk.

Capital Risk Management LLC delivers results within a well-articulated risk profile by deploying innovative methods in asset allocation, insightful investment strategy, and efficient implementation. Two decades of expertise in managing multi-billion-dollar portfolios enables access to private markets, including real estate, private equity, and venture capital. Leveraging our professional insight across global markets ensures that the path we take is the one that leads to your success.

WHAT WE BELIEVE

 

Core Beliefs

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 wealth 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. Delivering on our promise establishes us as a trusted advisor.

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, and 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 work, and we insist that our partners do so as well. Whether investing in the potential of venture capital, relegated real estate, or enhancing operational efficiency with private capital, these outcomes require people with deeply specialized knowledge to envision the overlooked value. We invest in talented people to strengthen our knowledge, business, and your investment returns.

II. Own businesses that enhance capital productivity

Do more with less. This statement 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 due to the ability of a 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, allocate capital efficiently, and occupy a competitive position that permits further growth. Since change takes time, our capital is patient. We wait to buy overlooked value, and we wait to sell until perfectly priced.

III. Allocate capital when market uncertainty is greatest

Risk is an 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. At times they are euphoric and despondent at other times. 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 an opportunity arrives.

Focus
Efficient
Simplify
Think Long
Independent
Value
Accountable
Learn

 

HOW WE ACT

Fundamental Principles

Our fundamental principles for achieving sustainable tax-efficient after-inflation returns are:

Focus Exceptional performance requires superior expertise that is only developed through time and effort. We focus our expertise on investment areas where there is a demonstrated ability to add value. We focus on partnering with the best people and deploying cutting edge processes to ensure the highest level of expertise and efficiency.

Efficient The story of growth is efficiency, the ability to do more with less. We know there is no certainty in divining future growth opportunities; however, we can control costs. If we do not control costs, someone else will do it for us. We focus on cost as the first principle of our business to maximize returns.

Simplify Nature is simple and abhors complexity. We know complexity is in direct opposition to efficiency. We operate at the simplest level to ensure understanding and effective communication. We prefer the simple to the complex. We focus on first principles to ensure understanding of our investments and processes at their most basic level.

Think Long Ideas take time to evolve and permeate. While the markets react in a moment, ideas and change take time to realize their potential. Fads and fashion will pass; however, customer-focused businesses with efficient operations will endure. We avoid the noise of today to focus our vision on the outcomes that we can achieve in the future. We are patient and nurture our people, partners, and investments.

Independent The status quo and the average are hindrances to growth. We know that to deliver superior investment performance, we must avoid following the pack. We know independence is predicated on artful questioning why and how we can improve. We question the status quo so that we build our knowledge from first principles and apply these insights to our investments and business.

Value The markets provide a price for everything and knows the value of nothing. We know there are two fundamental ways to deliver value: identify an unmet customer demand or increase business operations efficiency. We release value by ensuring that an investment achieves at least one of these outcomes.

Accountable Makes decisions and deliver outcomes. Our team's singular focus is sustainable tax-efficient after-inflation returns. We know that rewards and recognition emanate from superior performance. We know that to achieve our goal, we must hold ourselves and our team accountable for their outcomes. We hold ourselves to the highest level of professional conduct and nurture a culture of mutual accountability.

Learn Growth is an expansion of knowledge at its essence. We know the way to the future is through continual learning. We will seek to understand our environment, managers, and investments. As we explore new areas and capabilities, we will not succeed at times, and view these setbacks as the price of growth. We must continually learn to perform permanently.

Leadership

 

Capital Risk Management LLC (Capital Risk) delivers sophisticated investment management results by focusing its deep capabilities on linking the investor's risk and the investment program into a coherent strategy for the business or individual.

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 numerous professional associations, including the CFAI, CAIA, MTA, GARP, and NABE. Jason holds a doctorate in finance and earned degrees in politics, economics, and strategy.

 

Fate provided a diverse life experience including living in ten cities across Canada, France, the United States, Mexico, and Spain. He can order food and beverages in French and Spanish.

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San Francisco  |   Los Angeles  |  415-373-7152

 

©2003-2020 Capital Risk Management LLC

 

Capital Risk Management is a Registered Investment Advisor in California and may transact business there and in other states where it is notice filed or exempt.

Please note that although Capital Risk Management LLC is a Registered Investment Adviser, readers should be aware that registration with any state securities authority

does not imply a certain level of skill or training. Additional information about Capital Risk is available on the SEC’s website at www.adviserinfo.sec.gov or

through the Broker Check at FINRA.

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Simplify

Nature is simple, it abhors complexity.