Our Approach

Theta Capital’s investment objective is: 

To manage portfolios of hedge funds that produce positive returns in all market environments 

To achieve this objective, we take a mainly bottom-up approach reflecting our belief that hedge fund managers are well-equipped to capitalize on varying market conditions. In other words, we do not actively manage our portfolios according to pre-formulated return expectations for the different hedge fund investment strategies. Rather, we strive to select managers that have the proven ability to successfully exploit investment opportunities across various market environments. We aim to compose portfolios of hedge funds which have fundamentally different risk-return profiles to maximize the benefit of diversification. In addition, we may identify longer-term investment themes based on opportunities and the dynamics of the hedge fund industry, which go beyond the typical horizon of traditional tactical asset allocation. Our investment horizon for these opportunities tends to be multiple years. This approach endeavors to provide our clients with capital appreciation and downside protection, at all times. 

Objectivity in our investment process is enhanced by private ownership of our company, a high degree of investment transparency and a careful evaluation of any conflicts of interests. 

Our investment philosophy is implemented by means of a structured research-driven investment process, where decisions are made with expert judgement and a healthy dose of common sense. Theta as an organisation maintains an entrepreneurial spirit with short decision lines, which enables a quick identification and effective implementation of investment opportunities. This is the blend of art and science in our approach to hedge fund investing.