THALASSA CAPITAL’s asset management philosophy focuses on a research based approach which aims at discovering market anomalies and value arbitrage opportunities. In developing our market opinion and evaluating potential investments, we synthesize a variety of techniques. Our approach includes interpretation of macro-economic developments, bottom-up fundamental research, the use of sentiment indicators, and statistical probability analysis. We start with fundamental analysis to look at the factors that affect supply and demand of a particular asset in order to try and predict the expected future market price for that asset. The classical view is that fundamentals alone determine price, and that price discovery is a dependent process. THALASSA CAPITAL, on the other hand, embraces the idea of reflexivity – or that fundamental circumstances change as a result of fluctuations in price. Consequently, markets gravitate towards “disequilibrium.” As a result of this belief, we operate via multi-factor modelling rather than merely relying on a static view of the past.
Some of the data we analyse to formulate ex-ante expected return forecasts are:
- Value factor
- Size factor
- Return evidence (momentum)
- Return reversal
- Volatility Liquidity levels
- EPS momentum
- Corporate actions such as asset growth and net issuance
- Inflation sensitivity
- Scenario dependent analysis
At the institutional level, we specialize in unique strategies based on factor investing. Our process includes reviewing current academic research and implementing independent evaluation or back-testing. After the assessment, we directly invest partners’ capital in the resulting strategies. For institutional clients, we can structure proprietary strategic solutions to accommodate different needs. Our strategies can be managed under different configurations such as Separately Managed Accounts (SMA), Investment Partnerships or International Business Companies. THALASSA CAPITAL can also act as consultant and catalyst for the development of customized family offices. Our years of expertise dealing with the complexities associated with great wealth have allowed our firm to develop a replicable process for the establishment of efficient and extensive management operations for affluent families. We can provide consultation in different areas such as investment management, tax strategies, operational infrastructure, education and governance. For an in depth analysis of our current strategies please click on specific tabs under Institutional.