Q.2530 Northern Capital is a well-known asset management firm with a reputation for delivering solid returns for its clients. They pride themselves on their disciplined risk management process, with an emphasis on monitoring risks to ensure that investment activities align with their stated investment philosophies and strategies. Recently, they noticed that the forecasted tracking error for one of their funds, the Northern Growth Fund, deviated from their targeted tracking error level by 20 basis points. Upon investigating, they found that while the total risk levels were within the expected parameters, the fund was over-exposed to certain value themes, even though the fund is marketed as a growth fund. The risk managers are now trying to decide on the next course of action. Which of the following steps should Northern Capital take in response to this observation? | Financial Risk Manager Part 2 Quiz - LeetQuiz