Qualitative
Analysis
Quantitative
Analysis
Reye Partners Asset Management, LLC dedicates a considerable amount of time conducting due diligence and assessing client investments.
Before capital is committed to any investment product or investment manager, we must be confident that they are capable of executing their strategy and can ably run their business; managing people and processes to deliver results.
QUALITATIVE ANALYSIS
Taking a bigger-picture view of risk.
Scenario Analysis
We look at past and current “real world” situations and ask ourselves a set of “what if” questions about our investments, portfolios, and risks. This is highly subjective, but it forces us to consider extreme situations and the degree of downside protection we have.
Manager Assessments
We devote a considerable amount of time conducting due diligence and assessing our investment managers. Before we allocate assets to a manager, we must be confident that they are capable of executing their strategy, can ably run their business, managing people and processes, and delivering results.
Common Sense
Models, statistics, and analysis can only take you so far. We believe that a combination of experience and healthy skepticism is critical to investment success. We constantly ask ourselves if what we are doing “makes sense” or if we are missing something. We continuously question and challenge our thoughts, assumptions, processes, and decisions with the goal of ever-improving our investment results.
QUANTITATIVE ANALYSIS
Robust analytical tools to assess risk in an investment or portfolio. We define statistical risk analysis as the identification of intended and unintended risks in a given investment, strategy, or fund. At Reye Partners Asset Management, LLC, we primarily look for the following risks: equity market, interest rate, credit, volatility, commodity, currency, and idiosyncratic risk. We refer to these risks as Beta and believe that investors should be explicitly aware of these risks in a portfolio and understand if they are acceptable or not. If they are acceptable, then we should not be paying investment advisors very much for these exposures.
STATISTICAL ALPHA ANALYSIS
We use models to analyze, isolate, and measure the skill or added value that a manager or strategy may demonstrate. We need to understand exactly why, when, and how they have been successful and whether we believe their “edge” is sustainable.
STRESS TESTING
Asset mixes are stress tested to determine the potential impact of adverse market events. We are primarily interested in downside risk and how a portfolio may be affected during periods of unusual volatility, political uncertainty, or economic crisis.
