What is LSV's approach to risk management?

LSV Partners LLC adopts a comprehensive and disciplined approach to risk management, recognizing its critical role in successfully managing investment portfolios. The firm’s methodology emphasizes the need to balance risk and return, ensuring that investment strategies align with clients’ specific objectives and risk tolerances. LSV utilizes a systematic investment process that involves rigorous analysis and a deep understanding of market dynamics. This process includes quantitative models to assess risk factors and historical performance, allowing the firm to identify potential vulnerabilities and opportunities within portfolios. Furthermore, LSV is dedicated to continuous monitoring of investment positions and market conditions. This vigilant oversight enables timely adjustments in response to changes in the economic landscape or specific security risks. The firm focuses on diversification across various asset classes, sectors, and geographic regions to mitigate concentration risk. By spreading investments across a wide array of holdings, LSV aims to reduce the impact of any single investment's poor performance on the overall portfolio. Additionally, LSV incorporates stress testing and scenario analysis as part of its risk management framework. These tools help evaluate how portfolios may perform under different market conditions and stress scenarios. This proactive approach to risk management is integral to how LSV Partners LLC seeks to preserve capital while pursuing long-term investment growth for its clients. Individuals interested in more specific details about LSV's risk management practices may wish to review the information available on their current web page.