Being comprised of mostly smaller companies, our portfolio companies are not only different from each other, but together are highly differentiated from most other equity portfolios a client may also be exposed to. The power of genuine differentiation is that investors may blend portfolio exposures with uncorrelated or lowly-correlated assets to reduce overall risk without necessarily reducing expected return.
In addition to delivering Investors a differentiated investment exposure, the smaller company asset class and Fund itself hold the potential for strong absolute returns over time.
Our portfolio includes highly prospective opportunities that are not only economically different from each other, but are thematically different. Blending undervalued high quality growth companies together with shares trading at a material discount to their asset backing (ideally where a catalyst exists) gives our clients the best chance of benefiting in different investment environments. When one style is particularly neglected, another may be in vogue.
Our investment process is research intensive and utilises strong relationships cultivated by our principals over many years. These relationships span the broking community as well as across the many companies that we actively research. The benefit of this intensive research process is that we can glean insights that assist us in assessing the long-term prospects for individual companies and help us identify highly prospective opportunities.
All DMX Asset Management investment staff are significantly co-invested in the funds we manage, the firm itself, or both. Further, key investment staff share in the performance fees generated by the firm via an absolute performance-linked bonus structure. The benefit of this significant ownership, fund investment, and performance-linked bonus structure is the strong alignment of the investment team’s interests and those of our investors. We share in the upside and downside, as well as having incentives that reward strong performance over the short, medium, and long term, with an emphasis on the latter.