Meridiantalentcapital maintains an independent Chief Risk Officer and a Risk Committee that meets weekly. Position limits, concentration limits, VaR and stress tests are enforced at the pre-trade layer and monitored continuously.
The Chief Risk Officer reports directly to the CEO and the Board Risk Committee, not to any investment desk. The CRO has authority to reduce or close any position that breaches limits.
Weekly meetings chaired by the CRO. Members: CEO, CIO, COO, General Counsel and rotating desk heads. Independent minutes.
Direct reporting line to CEO and Board. Sole authority over risk limits, position sizing overrides and counterparty approvals.
Portfolio management, execution, valuation, risk, compliance and operations are functionally and organisationally separate.
Hard notional and % of NAV limits by name, sector, factor, currency and country. Enforced pre-trade in Bloomberg AIM.
Top-10 exposure, HHI, single-issuer and single-issuer-group caps monitored at strategy and firm level.
1-day and 10-day 99% historical VaR with a 3-year rolling window, plus parametric and Monte Carlo overlays.
Days-to-liquidate at 20% ADV computed on every new position; hard cap on portfolio-weighted DTL by strategy.
Gross and net leverage limits by strategy, monitored intraday. Margin usage capped at 60% of available.
Only approved counterparties on the master list; ISDA/CSA in place before any bilateral derivative trade.
| Layer | Cadence | Owner | Escalation |
|---|---|---|---|
| Position, P&L, exposures | Intraday, real-time | Risk analysts | CRO on breach |
| Factor and sector attribution | Daily EOD | Risk analytics | PM & CIO |
| VaR & stress test | Daily | CRO team | Risk Committee weekly |
| Concentration & liquidity | Daily EOD | CRO team | CRO immediately if breach |
| Counterparty exposure | Daily | Treasury & CRO | Executive Committee |
| Portfolio deep-dive | Weekly | Risk Committee | Board Risk Committee quarterly |
| Scenario | Shock definition | Firm P&L | Time-to-recover |
|---|---|---|---|
| GFC 2008 replay | SPX -37%, IG +250bps, HY +1500bps, VIX 60, credit gap 90 days | -11.8% | ~7 months |
| COVID March 2020 | SPX -34% in 5 weeks, HY +900bps, oil -60%, funding stress | -7.4% | ~4 months |
| Rates shock (2022+) | +300bps parallel shift, curve bear-flatten, HY +400bps | -6.1% | ~5 months |
| Geopolitical / oil shock | Oil +80%, EM -20%, DXY +8%, correlations to 1 | -4.8% | ~3 months |
| Idiosyncratic PB failure | Loss of one prime broker overnight, forced re-hypothecation | -1.6% | ~2 weeks |
Stress test P&L reflects firm-level aggregate exposure as of 30 June 2026 under fully-shocked assumptions. Indicative and not a forecast.
Every position is classified into a liquidity bucket. Portfolio-level liquidity is monitored against a defined ladder that matches investor redemption terms.
| Bucket | Definition | Global Equity | US L/S | EM |
|---|---|---|---|---|
| 1-day | Liquidatable at ≤ 20% ADV within one trading day | 92% | 96% | 78% |
| 1-week | Liquidatable at ≤ 20% ADV within one week | 99% | 100% | 94% |
| 1-month | Liquidatable within one calendar month | 100% | 100% | 99% |
| 1-quarter | Liquidatable within one quarter | 100% | 100% | 100% |
Meridiantalentcapital maintains an approved counterparty list reviewed quarterly by the Risk Committee. All bilateral derivative exposure is documented under ISDA Master Agreements with two-way CSAs. Initial margin and variation margin are exchanged daily against a G-10 rate; disputes resolved within two business days.
Prime brokerage relationships are diversified across three tier-1 providers to eliminate single-point-of-failure risk. No single counterparty may hold more than 45% of firm cash or margin exposure.
SS&C GlobeOp independently strikes NAV, reconciles cash and positions, and issues investor statements.
PricewaterhouseCoopers audits Meridiantalentcapital and all funds annually under US GAAP / IFRS.
Dedicated Chief Compliance Officer and Compliance team; annual Rule 206(4)-7 review; external mock-audits every 2 years.
SOC 2 Type II certified environment. Annual penetration testing by two independent firms. 24/7 SOC monitoring.
Fully redundant infrastructure across two geographic regions; disaster-recovery testing performed twice yearly.
All incidents logged in a central register, root-caused, remediated, and reported to the Risk Committee within 24 hours.
ILPA-compliant DDQ, SOC 2 report and full risk framework available upon verification.