Menu

Risks

Buying a focused portfolio of stocks that are out of favour can result in a lot of volatility.

Unlike most of the financial services industry we don’t consider volatility to be risk. We define risk as the chance of a permanent loss of capital. 

Anyone investing with us should be aware that the ride can be bumpy and the drawdowns can be large. There can be a long time lag – sometimes over three years – between us making an attractive investment and the price of that investment starting to reflect its underlying quality.

If you think your time horizon is less than three years, then our approach is probably not suitable for you. 

We encourage you to read the Aurora Primer if you are considering investing with us.