Investment Methodology

The Three Circles Capital investment methodology involves three key steps:

1. Allocation of assets. Three Circles Capital uses several economic indicators and data sources to routinely assess the macro investment environment.  Based on this assessment, we establish allocation percentages for equities, bonds, and other assets. A client’s account may be fully invested during very favorable market conditions or hold up to a 100% cash position during extremely adverse market conditions.

2. Proprietary stock selection. Many investment managers follow one unique investment strategy such as value or growth. In contrast, Three Circles Capital uses a quantitative approach to identify and invest in equities worldwide that meet a proprietary set of value, growth, and technical criteria. A screen is run daily to select these equities. Equities are typically sold when they reach valuation targets or fall below technical support levels. To generate income, a strategy of seling covered call options on stocks is selectively utilized.

3. Risk management. A comprehensive risk management program overlays both stock selection and sale decisions. When conditions dictate that market exposure should contract, Three Circles Capital may sell securities, establish short positions or utilize options, hedging or shorting capability, in accounts where this is allowable.