The 3P Way

Our approach to investing is succinctly captured in our name: 3P. The first P stands for Prudence. We are focused on investing in sustainable and reasonably valued businesses and will remain effectively diversified to manage risk. The second P in our name represents Patience. In investing, patience is a big advantage and its role over the long term is often unappreciated. Our third and final P is Performance, a likely outcome of the first two Ps.

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Complete alignment of interest

Investment Managers are committed to investing a substantial part of their savings in the Fund. Further, under normal conditions, members of the investment team will not purchase direct listed equities in the secondary market.

Investment Philosophy

Creating a portfolio of sustainable and reasonably valued businesses represents the core of the 3P Investment Philosophy. Avoiding weak businesses lowers the risk of permanent loss of capital/returns. Effective diversification across key economic and business variables reduces portfolio risk. Further, risk in equities reduces as the time horizon increases, hence we aim to follow a low churn strategy. A low churn strategy also reduces costs.

Growth vs value, large vs small caps and focused vs diversified strategies are keenly debated. These debates miss the real issue. 3P Strategy is focused on companies with strong fundamentals and reasonable valuations relative to growth. Portfolio Composition between large - small, growth - value and portfolio diversification is simply an outcome.