Managing Unintended Risks—Avoiding Leaky Bucket Syndrome Exposure

Read the Special Global Equity team’s piece on how they prevent unintended risks from creating leaks in their large cap value strategy’s excess return bucket.


15 min read



Key takeaways

  • Unintended risks can poke holes in a portfolio’s excess return bucket.
  • Portfolio construction designed to neutralize these undesirable exposures is imperative to prevent erosion of hard-earned outperformance.
  • The Special Global Equity team focuses on maintaining an all-weather portfolio by reducing unintended risks.
  • Using an accounting-based approach helps identify companies with a durable asset base, flexible balance sheet, and strong free cash flow.