We are an independent, boutique, partner-centric fund based invests in listed Indian equities with a long-term, fundamental and value-oriented approach.

3rd Arc Enterprises is a specialized equity fund management organization dedicated to direct investments in the Indian stock market. Our investment philosophy centers on long-term value creation through rigorous fundamental analysis, disciplined portfolio management, and a performance-aligned fee structure that prioritizes investor interests. At 3rd Arc Enterprises, our approach is grounded in fundamental research with sound technical analysis based on Elliot waves theory, WD Gann time cycles, Business life cycles, Market life cycles and prudent risk management, designed to generate alpha while preserving capital.

Investors in the fund pay no management fees, and we only get compensated for returns that exceed 18% annually, subject to a high-water mark provision. Our zero-management fee structure and fund manager’s significant investment in the fund leads to a highly-aligned partnership. The fund seeks to preserve capital and achieve long term capital appreciation with controlled risk by focusing on the margin of safety of an investment. We view risk as the probability of permanent loss of capital, not the temporary swings in a security’s market price. We actively seek undervalued and attractive investments in the Indian stock market that can be purchased at discounts to their intrinsic value. Our fund is unconstrained by sector and style, and we invest our capital in our best ideas. We employ a tax efficient approach given our long-term investment horizon. Our mission is to significantly grow the buying power of our investors over a multi-year timeframe. We seek to achieve this objective using a bottom-up fundamental approach executed in a disciplined and consistent manner.

We manage risk by emphasizing business & management quality, seeking a margin of safety, avoiding use of leverage, short selling & derivatives, avoiding speculative fads, and maintaining a diversified portfolio.

Philosophically, we don’t believe in placing legal restrictions on our partners (lockups, exit loads, etc.). Mutual trust and alignment with our partners are the foundation of 3rd Arc Enterprises, which we build via careful vetting and getting to know our partners over a period of time. We believe that if we emphasize transparency and integrity in our relationship with all stakeholders, it will ensure long-term success for our firm.

Given our long investment horizon, we recommend that clients only invest assets with at least a 4–5 year timeframe (and optimally much longer). We are investors, not traders, and expect our clients to invest alongside us with a similar long-term mentality.