Commitment to Responsible Stewardship
At Million Leaf, governance and risk management are central to our investment philosophy. We operate under a formal Investment Policy Statement (IPS) that defines our mandate, risk boundaries, and decision-making processes, ensuring accountability, transparency, and fiduciary responsibility.
Core Governance Principles
1. Formalized Decision-Making
All investment decisions are governed by predefined rules and documented procedures. This ensures consistency, repeatability, and minimizes emotional influence in capital deployment.
2. Accountability and Oversight
Roles and responsibilities are clearly defined within the firm. Regular internal reviews and monitoring mechanisms enforce adherence to policies and standards.
3. Transparency and Reporting
Detailed records of investment rationale, valuations, and execution decisions are maintained. This facilitates clear reporting to stakeholders and supports auditability.
Risk Management Framework
1. Risk-First Approach
Capital preservation is prioritized over short-term performance. All investments are evaluated for downside protection, margin of safety, and probability of favorable outcomes before deployment.
2. Portfolio Construction Rules
- Limits on position size, sector concentration, and overall portfolio exposure
- Delta and volatility constraints for options overlays
- Liquidity and cash buffers to maintain flexibility in adverse conditions
3. Continuous Monitoring and Adaptation
Positions are regularly reviewed against changing fundamentals, valuation, and competitive dynamics. Adjustments are made only when material deviations occur, rather than reacting to short-term market noise.
4. Stress Testing and Scenario Analysis
Simulations and scenario planning are conducted to understand potential portfolio behavior under extreme market conditions, ensuring preparedness for adverse events.
Embedded Discipline
By integrating governance and risk management into the core investment process, Million Leaf maintains a disciplined, repeatable, and resilient approach. This framework allows the firm to navigate market uncertainty, capitalize on structurally favorable opportunities, and sustain long-term compounding.
Success in investing comes from preparation, structure, and disciplined execution, not from prediction.
Million Leaf 