Exposure analysis allows the user to answer the following questions to form a vital component of investment due diligence for both Asset Selection and Portfolio Construction.
Who are we exposed to..? (E.g. Which funds/managers)
What are we exposed to..? (E.g. Instruments, Sectors, Strategies, Categories)
Where are we over/under-exposed to..? (E.g. Geographies, Sectors)
When were we exposed to..? (E.g. How have exposures evolved over time?)
Why were we exposed to…? (E.g. Does my investment thought process coincide with my actual exposures?)
Please see the following brief presentation to understand more: