The BluMont Core Hedge Fund employs a rigorous risk management policy in an attempt to mitigate large movements in the portfolio.

Specifically the fund imposes the following risk management measures:

• Individual and sector exposure limits
• Loss limits and tolerances
• Minimal use of leverage and derivatives

In practice, risk is managed throughout the portfolio construction process with an emphasis on:

• Stock selection as opposed to market timing
• Careful consideration to position sizing
• Recognition of market changes