The primacy of risk control

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We seek not just superior investment performance but superior performance with less-than-commensurate risk. Above-average returns in appreciating market environments are not necessarily proof of a investor's skill; it takes superior performance in bad times to prove that those good-time gains were earned through skill, not simply the acceptance of above average risk. Thus, rather than merely searching for prospective profits, we place the highest priority on preventing losses. It is our overriding belief that, especially in the opportunistic markets in which we work, "if we avoid the losers, the winners will take care of themselves."