Trowbridge Background

 

Trowbridge Capital Partners (Trowbridge)  is an SEC-registered investment adviser based in New York City. Trowbridge Capital Partners’ (Trowbridge) Chief Investment Officer started his research and quantitative modeling as a Global Macro Fund Manager over 20 years ago.

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Why Trowbridge

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After two decades of developing and implementing quantitative models to capture alpha for both the buy-side and investors, Trowbridge was born. 

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We started Trowbridge to help investors by giving them a better long-only solution that focuses on risk adjusted returns without trying to hedge away risk. In order to achieve this, we focus more on alpha generation and less on beta chasing with a lower correlation to our benchmark and diversifying away from the crowd. Our mission is to first and foremost protect investors capital over a market cycle while not missing out on upside return potential in excess of our benchmark. 

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The Cornerstone of these trading models is a sophisticated risk management technique to both optimize portfolio construction and enhance returns.

 

Our Edge - Managing Risk

 

We derive our edge from decades of active model development. Our models identify trends in a security or asset class while attempting to reduce momentum volatility. We use a quantitative price reactionary model to grade each security’s strength and risk. This allows the model to select the top stocks in various market environments which will potentially exhibit the greatest risk/reward trades.

 

Equally important is our Mean Reversion Model that determines when to reduce a security’s exposure from the portfolio. The Mean Reversion model attempts to measure price exhaustion and therefore the risk level of the security, thus allowing the overall model to assess whether the current risk/reward warrants exposure to that security and if the probability is high for mean reversion. This component is vital for avoiding  sharp downside losses when security’s trend changes.