At any other fund in the world, you’d find a bunch of traders being managed by a single fund manager. This fund manager’s single directive is “Don’t lose money.” The traders aren’t money managers; it’s the fund manager’s job to make sure the fund only grows bigger—never smaller.
At the Apiary Fund, we have a risk manager over the fund, but we also believe that every trader should really be a money manager who manages their own risk. We’ve put together such a thorough curriculum because Apiary Fund traders have to be money managers. On top of the principles of risk management that we teach, we also have risk management software that monitors our traders and makes sure that our risk management parameters are never exceeded.
For some coming into the fund, even those with some experience under their belt, this can feel oppressive and controlling. But in reality, Apiary’s risk management parameters are on par with industry standards for money management companies.
Like we’ve said before, the Apiary Fund has a vested interest in its traders. Because we are taking 100% of the risk, we have to manage that risk. And because we have to manage that risk, we try to teach and encourage all our traders to operate withing the risk management parameters!