Investment Management is Risk Management– Nothing More and Nothing Less

In this paper we argue that investors and investment managers make a mistake if they try to focus on achieving high returns or high risk-adjusted returns and are likely disappointing investors in the long run. Instead, we argue that investment management should focus almost exclusively on managing the risks of an investment portfolio; above average returns will be a natural outcome of a proper risk management process. We describe the key risk management steps and why we believe this process leads to superior investment performance