Message from Stephen J. Cucchiaro
It isn’t often that we are afforded an opportunity to begin anew in pursuit of a lifelong passion, and I am truly grateful for this opportunity. I am also fortunate to be working with an exceptional team with deep investment industry experience. Additionally, I have had the privilege of working with many of these individuals in the past.
Our firm provides investment management services to both private clients and institutional investors including; HNW individuals, family offices, multi-family offices, registered investment advisers and Wealth Management firms, as well as endowments and foundations, among others. This happens to be a particularly interesting time to launch our firm. Since the financial crisis of 2008, the world’s major central banks have intervened in the global markets to an unprecedented degree. This extraordinary level of monetary stimulus was intended to lift economic growth indirectly by raising asset prices, in the hope that renewed “animal spirits” and an accompanying wealth effect would lift economic growth. While central banks were successful in raising asset prices, a satisfactory level of economic growth remains elusive. Therefore, with asset prices climbing more quickly than underlying economic growth, central banks may have robbed potential future returns by pulling gains into the present. This could mean that going forward, markets may face the prospect of returns that are lower than historic norms, particularly on a risk-adjusted basis. However, we believe that an opportunity still exists to generate attractive long-term investment returns by seeking to identify undervalued asset classes that may be poised to enter a period of outperformance by identifying the economic, fundamental and behavioral factors that could drive future market cycles. As part of our proprietary research process, we have also created a multi-player game theory framework as an additional tool to help us better understand the factors driving the markets, particularly post-financial crisis.
Going forward, it will also be important to recognize that since central banks have taken the global capital markets into uncharted territory, investors may face risks unlike those experienced in recent history. Therefore, our research now extends as far back as the 1870’s in order to capture and study market dynamics that included periods of deflation, rapid inflation, currency wars, depressions and even world wars in an effort to manage portfolio risk more comprehensively, while still seeking to deliver attractive risk-adjusted returns.
I would like to thank you for your interest in 3EDGE Asset Management. We would welcome an opportunity to speak with you in greater detail about our firm and how we might be able to assist you in the future. Please feel free to reach out to us through our Contact Us page.
All the best,
Stephen J. Cucchiaro
President & Chief Investment Officer
3EDGE Asset Management