Managing Risk
Risk control is critically important to our firm.
We build portfolios one stock at a time, based on fundamental valuation criteria. Our primary risk control measure is careful stock selection through fundamental financial statement analysis and investment thesis consideration.
Profit Investments also has developed a warning system designed to identify potential underperformance in our portfolios. This system employs price triggers that call for reevaluation of the position to outright liquidation. We research each instance where the warning system is called to action to determine what, if any changes, need to be made to our investment process.