t3 equity labs llc

. . . . . . . . . . . . . . . . ..managing "downside" risk ---- 1st!
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"If we knew what it was we were doing,
it would not be called research,
would it?"
                                                                        Albert Einstein
 
 

EQUITY INVESTMENT PHILOSOPHY - The investment

philosophy of the firm is based off of Behavioral Economic/Financial Theory. The Thesis for model development is built on a belief that while the Equity Markets are momentarily efficient they are inefficient beyond this moment. The Markets work because we show up every day believing the markets are inefficient and work towards extracting the inefficiencies’ from the Market thereby driving the markets back towards an optimally efficient balance. The models are structured on a platform designed to extract the inefficiencies with-in the market.

 

The foundational belief is that Earnings matter with respect to market efficiencies. Consequently, the models are designed to predict where the highest probability of an earnings surprise will occur at the Index, Sector, and Individual Security levels. If Earnings matter and Markets are priced off of forward looking expectation levels, then expectation changes are what drives markets. In order to provide value over the Markets, the model has to be designed to anticipate changes in expectations specifically around earnings. The model then directs attention towards areas of increasing earnings surprises at the Index, Sector and Individual Security level. These models incorporate a unique combination of Fundamental and Technical factors into a proprietary algorithm.

 

The platform was developed from original intuition (discovered in June '01) w/a proprietary algorithm that has not changed since discovery. The models began live beta testing in Sept. '04 (w/live observed results back to that date) Models began trading in Sept.'06.

 

 
                       

               

                     

 

                            

 

 

 

     t3 believes that there is more to be gained from a total portfolio performance perspective as well as from a risk management perspective from managing downside risk than there is to be gained from upside market capture.  t3 believes this belief will establish a new paradigm for the Wealth and Portfolio Management practice.