“For the past 12 years, risk management has been a dirty word. Who needs to manage risk when there is no risk to manage?” Solomon said. “But, I think things are changing. Now you’re in a different game with rising interest rates, so it’s very important to have managers who can manage risk.”
Solomon said the result, which uses quantitative investing, is aimed at achieving maximum returns for the least amount of risk. Therefore, he urged advisors to find managers with a proven record of protecting money in bad markets.
“I think the importance of knowing this, and being comfortable with it, is greater today in a rising rate environment than it was six months or a year ago,” he said. “Obviously, we are very biased towards not using intuition, emotion, or forecasting to manage risk. We do it algorithmically.”
Outcome has 100 high-net-worth and family office clients and $250 million in assets under management.
It also has two funds that have done well in tough times.