Thirdrock Asian Affluence Fund
An Asian-focused long short equity funds, the Thirdrock Asian Affluence Fund invests in equities with an Asian story. With an emphasis on the Hong Kong/China markets and on the domestic demand sectors, the fund utilises a long short strategy using fundamental analysis. The fund seeks to enjoy capital appreciation of the portfolio over time by owning stocks that it deems undervalued, and betting against stocks that it believes are overvalued.
The fund believes that mispricing occurs particularly frequently in the Asian markets as stocks here are less well understood, markets are relatively inefficient, and fund managers tend to be momentum driven. Using qualitative analysis and quantitative screens to locate and identify mispriced stocks, the Fund aims to benefit from stock prices rising or falling over time by taking a different and hopefully more accurate view than the market on the earnings and cashflow trajectories of such companies.
A multi-strategy quant fund, PTQ employs a scientific approach using rules based processes to seek out opportunities in the financial markets. The flagship investment program was conceptualized in 2015 with the objective of achieving consistent returns, in variable market conditions, while having a more constant risk profile. The program borrows concepts from both traditional alpha strategies as well as alternative beta strategies, while maintaining the flexibility as well as the discipline to dynamically adjust the allocations based on changing market regimes. Many of these strategies are based on exploiting medium term (days to months) signals, and so portfolio turnover can be relatively high.
PTQ takes a multidisciplinary investment approach across different asset classes and geographic regions, aimed at producing consistent risk-adjusted returns in variable market conditions. Among the fund’s key strategies are statistical arbitrage which systematically seeks out relative value opportunities using factor based reconstitution; momentum/trend that targets assets with trending behaviour; event-driven which exploits price movements around company-specific event and premia, which combines option premium harvesting and unconstrained risk parity. The proprietary investment models, which have been developed with the team’s cumulative experience of over 30 years in proprietary trading groups, seek to exploit mispricings resulting from behavioural biases and employ a multi-tiered approach to risk management.