The Upside of Minimising Downside

27 Mar 2024

At Koda Capital, we observe that many investors tend to focus attention on the upside potential of their investments. While considering gains and strong portfolio returns is natural for investors, minimising a portfolio’s losses in falling markets is far more important to long term investment success than maximising gains in rising markets.

In 2020 Koda Capital Adviser & Partner Michael Massey published a paper titled ‘The Upside of Minimising Downside’. This is one of three papers in a trilogy series outlining the principles behind Koda’s investment philosophy: diversification, upside/downside capture and time in the market.

These principles are embedded in the strategies we use to construct client portfolios in a way that ensures investments have appropriate exposure to the upside while also minimising the downside. This balance, when combined with investing through cycles, enables clients to enjoy the benefits of compounding returns over the long term.

The full paper is available to download from Koda’s site at


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