Risk Management

Hidalgo Companies designed its approach to risk management to A) avoid unquantifiable risks, B) quantify and assess range-bound risks, and C) proactively manage risks that can result in an outsized negative value. As a result, Hidalgo manages risk through researched-based sourcing, quantitative analysis, thorough due diligence, portfolio diversification, and proactive asset management.

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We control risk by ensuring our real estate portfolio isn't overleveraged, and substantial reserves are maintained. That way, when a market downturn occurs, we have enough liquidity to maintain the real estate investment until the market recovers.

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There are four parts to any real estate cycle: expansion, contraction, recession, and recovery. Each part of the cycle demands that we pay detailed attention to our investment decisions. By understanding real estate cycles, we take the correct actions to mitigate risk during market downturns. 

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