Markets are complex systems — chaotic and sensitive to initial conditions, much like the three-body problem. No formula solves them and no forecast can predict them. We cannot backward-engineer what comprises demand and supply for an instrument. But at the intersection, it settles, and that gives us the price. Price action is our guide. We trade what the market tells us it wants to do, not what we think it should do.
Three Body Capital is a discretionary manager trading global equities, long and short. We treat markets as complex systems rather than puzzles to be solved.
The fund is run by its two founders, David Cunio and Eugene Lim, who manage investors’ capital day and night alongside their own.
The aim is straightforward: perform, and be ruthless about protecting capital when conditions turn.
Positive absolute returns over the market cycle, with limited drawdowns. In good conditions we aim to capitalise on the opportunities presented; in bad ones we aim to preserve capital and hold on to hard-earned gains.
Long and short positions in global listed equities, run as a concentrated book of typically fewer than twenty positions. Net and gross exposure move with what the market is telling us: when price action confirms a view, we press it; when it deteriorates, we cut — to zero if necessary.
Cumulative performance, net of fees, indexed to $1,000 at inception. Past performance is not indicative of future results. Capital is at risk.
Demand and supply for stock intersect and settle in price. Fundamentals matter and inform our thinking, but they are not the primary factor in decisions to take risk — the tape is. When price action and fundamentals line up, that is when we press hardest.
Markets are complex systems — chaotic and unsolvable by formula, like the three-body problem. We don’t pretend to know what comes next, and we distrust anyone who claims to. We hold multiple scenarios in our heads at once and let the market tell us which path to follow.
The objective is to make a lot when we are right and lose little when we are wrong. Winners run for as long as the tape allows; losers are cut fast at pre-identified levels. When conditions demand it, we are prepared to take the book to zero and start again. We have done so over a dozen times already.
We manage investors’ capital alongside our own, as if it were our own. Substantially all of our personal net worth sits in the funds and the business.
We manage investors’ capital alongside our own, as if it were our own. Substantially all of our personal net worth is invested in the funds and the business.
David is the lead fund manager of Three Body Capital and has been involved with hedge funds for almost 20 years.
David believes deeply that the puzzle of the market cannot be solved by backward engineering its ingredients. There are too many. And the answer to the puzzle is always evident from the clues that the market gives. His background in emerging markets allows him to combine the skill of deciphering the price action with the idiosyncrasies of each market, its participants and their behaviours.
He lives in Cape Town with his wife and 3 children.
Eugene focuses on ensuring that the firm’s investment process is executed with discipline across both portfolio management and operations. He has been involved in financial markets for 17 years and in hedge funds for almost a decade. He is a CFA charterholder.
Eugene works closely with David in managing the fund, combining fundamental analysis with an assessment of market behaviour and positioning.
Eugene lives with his wife in Jakarta.
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Three Body Capital (Mauritius) Ltd.
1/F Maeva Tower, Rue du Savoir
Ebene 72201, Mauritius
To request the current factsheet or discuss the fund, get in touch directly.
Email: info@threebody.capital