It can be observed, even mildly forecasted, but finding a perfect, formulaic solution is impossible.
Three Body Capital is a discretionary macro and thematic manager that treats markets as complex, human systems rather than puzzles to be solved.
The fund is run by its two founders, David Cunio and Eugene Lim, who invest alongside clients and spend their time thinking about how narratives, flows and structure meet in actual price action.
The aim is straightforward: grow capital sensibly over time, and be ruthless about protecting it when conditions turn.
The starting point is simple: markets are driven by people, stories, and incentives, so they will never be clean or predictable.
Instead of betting on a single model or style, and becoming married to an ideology or a fundamental belief, the focus is on reading what the market is actually doing, watching how narratives spread, and letting price action confirm or reject a thesis.
Risk management is built into every step, from tight stop‑losses on individual positions to a portfolio‑level line that, if crossed, forces a reset rather than a slow bleed.
The market is as human as any of us, guided by the narratives that dominate its psyche. By understanding the dominant narratives at any given time, evidenced by price action, we can better observe how the collective intelligence of the market is interpreting its changing reality.
Ideology and dogmatism have no place in these markets. Being style agnostic maximises our ability to deliver on our aims. We change our minds when the market evolves, and focus on the singular goal we share with our investors: delivering returns and protecting capital.
Beyond spreadsheets and models: pattern recognition, narrative analysis, cultural zeitgeist. Markets are as much art as science, requiring intuition and creativity. We blend quantitative rigour with the qualitative insight that comes from deeply understanding the stories driving price action.
We manage our investors' capital alongside our own, as if it were our own. We have invested substantially all of our personal net worth into our funds and our business. Style, ideology and ego have no role in our process — only the singular goal of delivering returns and protecting capital.
Deliver positive absolute, low-teens average annual net returns over the market cycle, with limited drawdowns.
Risk management with respect to returns is paramount. In the good times, we aim to capitalise on the opportunities presented to us; in the bad times, we aim to preserve capital and hold on to our hard-earned gains.
The Three Body Fund invests predominantly in listed equities, taking both long and short positions in global equities, with a slight preference for emerging market instruments — a testament to our history as EM managers.
The book is actively traded, with net exposures varying widely in response to market conditions. Gross exposure and leverage are typically kept low by running a concentrated book of typically fewer than 20 positions.
This discipline forces us to focus on only deploying capital in positions that are delivering alpha — both long and short, while pruning idle risk that is underperforming the book to make room for new positions, removing the need for large gross exposures.
Our message is consistent and simple: we manage our investors’ capital alongside our own, as if it were our own.
A solid alignment of interests has been our guiding principle from the first day we started our business, and continues to be so.
Above all else, we have invested substantially all of our personal net worth into our funds and our business.
To that end, style, ideology and ego have no role in our process. We change our minds when the market evolves, and focus on the singular goal we share with our investors: delivering returns and protecting capital.
