The New Toolkit for Managing Investment Risk: Interview with: Kushal Kumar, Founder and Managing Partner, Numen Capital LLP


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An interview with Kushal Kumar, the Founder and Managing Partner at Numen Capital LLP, an investment management firm at the marcus evans European Pensions & Investments Summit 2013 provides insights on how innovation can help reduce risk.

Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today.

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The New Toolkit for Managing Investment Risk: Interview with: Kushal Kumar, Founder and Managing Partner, Numen Capital LLP

  1. 1. The New Toolkit for Managing Investment Risk How can investors minimise and We should anticipate a lot of fiscal better manage risk? restructuring of welfare entitlements within economies. We also should be We must be innovative and look for ready for debt reduction measures from solutions beyond the traditional toolkit. policy markets and central banks via As an example, the traditional historically untested policy actions. economist’s approach to leveraged Political dynamics will remain in flux sovereigns is outdated and will not work through this period. in today’s world. The markets that investors operate in now are historically unique in the amount of leverage debt still existing in the system.Interview with: Kushal Kumar, One approach which worked for us, bothFounder and Managing Partner, to identify opportunity and to minimiseNumen Capital LLP risk, was to adapt our tested corporate Risk toolkit and integrate it in such a way as to apply to sovereign issuers.When looking for solutions to identify managementopportunity and mitigate risk, investors At a portfolio level, risk managementshould “adapt their corporate toolkit and should be focused on verifying risk viaintegrate it in such a way that applies to scenario based simulations (rather than should besovereign issuers”, says Kushal Kumar, model based) on a continuous basis.Founder and Managing Partner, NumenCapital LLP. “A smaller portfolio should This should be aimed at identifying the focused onbe preferred, rather than a large basket real consistency between anconstructed purely for diversification organisation’s market views and itsneeds,” he adds. actual portfolio position, and thereby verifying closing any gaps in managing risk. AFrom an investment management firm smaller and more granular portfolioat the marcus evans European should be preferred, rather than a large risk on aPensions & Investments Summit basket constructed purely for2013, in Montreux, Switzerland, 22 - 24 diversification needs.April, Kushal discusses why investments continuouswill perform better when, amongst other Why is cash flow and documentthings, managers adapt their existing analysis an advantage forcorporate credit skills to a new world of investors? basis“ex-risk free credit assets” alongside anapproach where risk management is a Last year, our investments in Greekcontinuous process aimed at identifying bonds performed very well and suchinconsistencies between views and trades were entirely driven by cash flowportfolio positions. and document analysis. Cash flow analysis enabled us to identify the realWhat is your outlook for investing fulcrum beyond which only binaryin the Eurozone? outcomes could exist. An analysis of documentation related to the bondsWe are very constructive on Eurozone. enabled us to identify further whichAll the signs are that fiscal union is bonds (e.g. International law bonds)happening in front of our eyes in a very could do better than others (e.g.gradual but definitive manner. With this domestic law bonds).background in mind, we anticipate thatEuropean risky assets will significantly What are your predictions for theoutperform other risky assets, especially economic and political landscape?once you adjust for liquidity andcurre ncy. W e an ti cipa te sprea d Economic growth across the Eurozone isconvergence within Europe although one expected to remain modest over theneeds to be mindful of the absolute medium term. The deleveraging willlevel of interest rates here. take many years to fully materialise.
  2. 2. About the European Pensions & Investments Summit 2013 The Investment Network – marcus evans Summits group This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, delivers peer-to-peer information Switzerland, 22 - 24 April 2013. Offering much more than any conference, on strategic matters, professional exhibition or trade show, this exclusive meeting will bring together esteemed trends and breakthrough industry thought leaders and solution providers to a highly focused and interactive innovations. networking event. The Summit includes visionary presentations and interactive forums on geopolitical risks in the global economy, finding opportunities for steady returns in recalibrating markets and rethinking pension products to deliver sustainable benefits in a new systemic context. Please note that the Summit is a closed business event and the Contact number of participants strictly Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits limited. Division Tel: + 357 22 849 313 Email: For more information please send an email to All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.comAbout Numen Capital LLPNumen Capital LLP was established as an Investment Manager in 2008 by Filippo Lanza and Kushal Kumar and currently managestwo credit funds focused on Europe with an aggregate AUM of USD 250 million. Numen’s investment philosophy is based on astrong understanding of credit fundamentals that encompasses a wide range of aspects from Enterprise Valuation, Cash-flowAnalysis, Prospectus / Document analysis, Creditor rights and Knowledge of bankruptcy proceedings.www.numencapital.comAbout marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsAPAC Investments Summit - www.apacinvestmentssummit.comElite Summit - www.elitesummit.comEmerging Markets Investments Summit - www.emisummit.comPrivate Wealth Management Summit (North America) - www.privatewealthsummit.comTo view the web version of this interview, please click here: