3 Degrees focuses on opportunities in niche markets where access to deal flow is highly relationship driven. Our investment activities are guided by the following principles:

Relationship-Driven Investment Approach
Unlike efficient markets, where information is shared quickly and equally amongst a large number of market participants, inefficient markets are characterized by fewer players with disproportionate access to information and deal flow. We focus exclusively on such markets wherein transactions are highly relationship-driven and often concluded on a confidential basis. We work closely with our counterparties to build strong, lasting partnerships. Moreover, we often develop strong bonds with the management and shareholders of the companies in which we invest.

The Importance of Risk Control
Delivering superior investment performance in good years and poor performance in challenging years is not acceptable to us. We seek to deliver consistent, uncorrelated, absolute returns by placing a foremost emphasis on the preservation of capital. In addition to searching for the best deals, we are careful to avoid the losers.

Specialized Approach
We believe that taking a specialized, focused approach is vital to delivering consistent returns. Our investment mandates are clearly defined - and we never drift. Like our investors, we do not like surprises. In addition, specialized funds enable our investors to clearly understand the risk of their investment, allowing them to properly construct their portfolios. Investors interested in more than one asset class can invest based on their specific needs.

Rigorous Due Diligence Process
We believe that generating consistent returns is only possible by gaining superior knowledge of the companies in which we invest. Therefore, we apply rigorous, research-based fundamental analysis, information gleaned from proprietary sources and good-old-fashioned common sense to all of our investment candidates. We travel frequently to meet company managements, industry competitors, suppliers, relevant professionals and experts, as well as the lenders to these companies to ensure a harmonic investment hypothesis. Our portfolio construction is conservative and deliberate, which in our opinion, is always the best hedge.

Activist When Necessary
Our activities in distressed debt have led us to play both the role of passive as well activist investor. Some of our earlier investments afforded us the opportunity to gain control of fundamentally sound businesses at bargain prices. The operational expertise we have developed as a firm has enabled us to become more value-added investors, working alongside existing management, supplementing existing management or even replacing existing management when necessary. We also understand the value of repairing or creating brand value for the companies in which we invest.