DCM was established to offer clients long-term capital appreciation combined with a fair and transparent fee structure. The investment approach concentrates on finding under or over valued assets within a framework that does not place arbitrary constraints upon the fund manager, Avoiding constraints such as concentration, benchmarks and monthly returns, allows the fund manager to maximise overall performance.
The most important criteria in making any investment is the investment itself, regardless of how it affects the portfolio’s short term performance or how it compares to an arbitrary benchmark; DCM concentrates on this almost exclusively. Investments are made only after extensive work on all aspects of the investment has been performed which incorporates understanding the industry, the company and how its market value compares with its intrinsic value. The roots of the investment process are derived from Benjamin Graham, which have been further developed by Warren Buffett. These sound principles make common sense and have stood the test of time.
To remove the pressure to succumb to short-term profits, DCM reports results only twice per year, however, clients can review their portfolio on a real time basis on an Internet web browser. DCM’s fees have been designed to be fair and transparent. There are no management fees and DCM will only receive a fee if it can produce a compound annual return in excess of 6% per year. DCM receives 25% of returns above this level, with the client receiving the balance. The fees are structured such that DCM will only receive a fee if it performs - there is no fee for mediocre performance.
In terms of the structure, the custody of the assets is at Interactive Brokers Bank, client assets are managed via a managed account structure and ownership of all assets remains in the client’s name; DCM is given authority to make investments on behalf of the client. Each client can access their portfolio on a real-time basis via an Internet web browser to allow ultimate transparency and control.
DCM has been established to offer investors long-term capital appreciation and investors are encouraged to have a similar outlook before making an investment. This is not to say that the investments will be locked up or unable to be redeemed but that investors should not be looking to invest with DCM in order to achieve short term profits. Of course, profits sometimes can materialise very quickly but this cannot be guaranteed. Clients may withdraw cash at any time but I ask that this is limited to monthly withdrawals unless there are exceptional circumstances and that 10 days notice is given before withdrawing assets.
At present, DCM can accept both cash assets and SIPP assets along with accommodating investments made via an offshore account. Many SIPP providers have access to the Interactive Brokers Platform and can appoint DCM as the investment manager. SIPP providers not currently on the list can be added to the platform easily. This process can take as little as a few weeks depending on how quickly the provider returns paperwork.