Risk Analysis

All investments have a risk of loss whether temporary or permanent or merely a loss of purchasing power due to inflation. Lexington Avenue Capital Management’s strategies are geared to achieve the long-term results desired by the client. Our firm attempts to minimize these risks through asset allocation and diversification and adopting appropriate strategies for each individual. We attempt to diversify a client’s holdings as widely as possible. This is done by utilizing investment vehicles which provide wide diversification, not by using many investment vehicles. The diversification is generally done on a global basis, reflecting the increasing internationalization of the capital markets.  

 The risk associated with each investment vehicle is different. Lexington Avenue Capital Management’s depth of knowledge and experience is instrumental in analyzing the risks associated with the wide array of investment products that are being utilized to achieve a certain return. 

Systematic risk is also known as market risk and relates to factors that affect the overall economy or securities markets. Systematic risk affects all companies, regardless of the company’s financial condition, management, or capital structure, and, depending on the investment, can involve international as well as domestic factors. Some of the most common systematic risks are listed in the chart above.

Non-systematic risk, in contrast to systematic risk, affects a smaller number of companies or investments and is associated with investing in a particular product, company, or industry sector.