Investment Strategy

We are absolute return, thematically driven investors with a ‘risk-first, return-second’ approach to investment decision making. Looking at downside before upside, is critical to our risk management approach to the markets, as capital preservation for our clients is paramount.

Our approach is what some people have termed Technomental; where we are fundamental analysts at heart, which is the basis for our investment selections, but with a technical overlay for entering and exiting positions and identifying new or fading themes. This can lead to a high concentration of holdings, or at the other extreme, all cash, when we feel opportunities do not warrant the perceived risk. As we have structured Three Bridge Capital to receive zero fixed management fees, we believe this flexibility is crucial to aligning our interests with that of our investors. Our clients rely on us to make them money, so we try to be conscious of where “things” are at in the cycle; in terms of overall markets, sectors/themes, interest rates and asset classes. We have learnt, that it doesn’t matter what we think, it matters what the markets think.

By investing thematically, we attempt to identify sectors we think will generate strong returns, before they have started to move. However, it is once these sectors or themes have started to move that helps us decide when to invest. Again we try to listen to the market.

We are the first to say we are imperfect in our approach and decision making, however we are flexible; as we have no sector, country or asset class weightings we need to adhere to. Our inherent flexibility allows us to adapt to changing market conditions, to strive to deliver positive monthly returns with lower downside.