33 Capital Management applies a global macro and secular thematic framework investing strategically and opportunistically across asset classes globally.
Idea generation, is defined by ‘change at the margin’: macroeconomic, geopolitics and demographic research guides resource allocation and broad global thematics; bottom up fundamental, technical and valuation analysis drives security selection and idiosyncratic characteristics.
Current Themes include: Cost of Capital, Multipolar World, Energy Transition, Digital Transformation and Health & Wellness.
Portfolio construction, is where top down and bottom up intersect. We consider our target risk and return relative to the current environment for risk free rates, risk assets, and liquidity premia.
We seek to identify the “Fulcrum Portfolio”, the best risk/reward mechanism through which our thesis can be expressed across target asset classes.
Exposures are predominantly towards global equities, currencies, commodities and sovereign rates
Risk, is primarily calibrated for drawdown mitigation and the macro environment.
Risk management is dynamic, with pro-active re-weighting, use of cash, uncorrelated diversity and tail hedges.
The risk framework is explicitly designed for convexity. Considerations include asset and thematic allocation, concentration and sizing, trade expression and implementation, alpha, beta, exposure, optionality, and sensitivities