Three Sigma Capital, LLC is a registered investment advisor founded in 2011 and led by Gaurav Khanna. Three Sigma Capital primarily manages private investment funds, including The Fifth Quarter Fund and CoreFactor Fund, utilizing options-based strategies on market indices and exchange-traded funds. In addition to pooled investment vehicles, Three Sigma Capital manages separately managed accounts for individual clients using similar options strategies. The firm focuses heavily on quantitative and options-oriented trading rather than traditional long-term stock and bond investing. Three Sigma Capital also requires clients to grant discretionary authority to execute trades without prior approval for each transaction.
Fee Structure
Portfolio-Based Fees (Flat)
| Portfolio Value | Annual Fee |
|---|---|
| Any | 1.00% |
Fees for separately managed accounts are generally 1% per year. Private investment funds charge 2% per year plus a 20% profit incentive allocation.