There are two core factors that differentiate high performance racers (managers) from average racers (managers). Simply put:
The guy with the best brakes (risk management) has better chance of winning;
The guy with more skills in timing re-acceleration (risk on) and deceleration (risk off), has better chance of outperforming the group.
Dravid Dredge, the CIO for Convex Strategies, explains this well.
A discussion about risk mitigation and how the best risk-adjusted performance comes out with measured acceleration and deceleration management techniques.
A MUST WATCH for any serious investor.
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