Drawdown Control

What is Drawdown Control?

Drawdown Control is an active effort toward directing and controlling drawdown in an investment program or fund.

Drawdown is the decline in value from a previous peak value.

Below is an example of a drawn % off high. In this example, the stock index had a drawdown of nearly -50% from 2000 to 2003 and then -56% from 2007 to 2009.

drawdown-control

Drawdown Control systems and methods aim to limit and control the magnitude of the drawdown.