Jason Z. Wu

that will suffer. An investment idea is derived from screening a large sample of news releases, corporate earnings reports, annual reports over time. Then, we research the major players in the relevant space to structure a position of long and short stocks to have the best risk/reward ratios under various historic and hypothetical scenarios. The screening process is not only an important source of investment ideas, but also a key part of our risk management input, through which our existing investment thesis is being tested constantly. One of our greatest strengths, we believe, is our ability to manage risk. We set a strict set of standard risk parameters for the overall portfolio such as leverage, net exposure, sector and individual position sizing. These parameters are managed dynamically, depending on market conditions. For each position, we also attempt to determine the market expectations based on past and future events, such as product announcements and its earnings' announcements or its competitors' earnings, so we can better manage the risk time line accordingly.