Effective risk management depends on a range of factors including diversification of investments and other factors as outlined below.
The implementation of appropriate risk management strategies is critical to the management of Henry Morgan Limited's portfolio. These strategies are influenced by the philosophy of the portfolio's investment manager, John Bridgeman Limited.
This philosophy is based on understanding, in great detail, an investment opportunity's investment metrics, a thorough understanding of the operating market and the risk associated with each investment. This information is cross checked via unlisted and listed market participants, competitors and industry experts, to gain a thorough and diverse information base for informed and well timed decisions.
Investment decisions require disciplined analysis and due diligence in order to ensure appropriate investment targets are identified. Henry Morgan Limited's investment manager, John Bridgeman Limited will evaluate the coherence, clarity and balanced character of potential investment targets and conduct a critical review before determining whether or not to make a recommendation to invest. The following criteria, amongst others, are taken into account:
- The sector and growth profile of the potential investment.
- The immediate or medium term profitability.
- The asset performance and background.
- The size of the market and competitive position.
- The level of technical and/or development aspects of the asset.
Only those investment targets which successfully meet the above criteria would be considered for investment by Henry Morgan Limited. Before any investment, Henry Morgan Limited will ensure that it has full understanding of the advantages and potential risks of the investment, and that the investment is appropriate for the portfolio's objectives, operational and financial resources and other relevant circumstances.