META Group

Investment approach

Thesis

There are five pillars that form our Investment Philosophy: Prioritize Fiduciary Responsibility We recognize fiduciary stewardship is more than a contractual promise to put the needs of our investors above our own. It is a commitment to excellence: as an employee-owned firm, Metacapital requires our professionals to co-invest with our clients and many of us have the bulk of our net worth invested in our strategies. Being recognized as a “trusted pair of hands” for our investors’ assets is the greatest reward. Only Invest Where You Have a Discernible Edge We invest where we have a discernible investment edge. We hedge exposures to risks where we do not have an investment edge. Perennial students, we are continually learning which enhances our working knowledge, broadens our perspective and deepens our convictions. Always Have Clear Exits for Trades “Luck favors a prepared mind.” We invest where we have a mapped, clear exit for our trades. We continually calculate and reprioritize the risks that could compromise projected target returns. A clear exit ensures we know the depth and duration of each trade to optimize outcomes and maximize alpha generation. Use Hedging Tools for Capital Protection, Tail Risk and Modulating Exposures Precise hedging tools provide us with “margins of safety” – a carefully managed tactic for capital protection, tail risk hedging and modulating exposures when the trade requires rebalancing, trimming or doubling-down. Our edge is having the judgment, experience and acumen to know when, how and how often to use these hedging tools to better map optimal outcomes. Navigate Tough Markets with Calm Focus Our success is measured by maintaining a disciplined investment process, maintaining long-term trusted client partnerships, cultivating a culture of independent thought and putting investment stewardship above all else. It is easy to allow difficult markets to instigate panic and a sense of urgency. Instead, we return to our investment thesis and core investment principles which allow us to protect the integrity of our conviction. Constructing additional risk barriers requires precise timing and ensures further capital protection.Source (opens in a new tab)