Frequently Asked Questions

Who should I contact if I require further information? In the first instance contact the Investment Advisor. A detailed Offering Memorandum can be downloaded.
What returns will I get? No one can say. Over the long term, total returns from equities have typically been around 10% pa compound.
Will the Fund returns be poor if the US dollar weakens? No. While the Fund reports in US dollars, the underlying securities are spread around the globe, thereby offsetting currency risks.
What is your investment philosophy? Please download from the Reports section of this website, under Research, my 23 April 2004 note that details my investment philosophy.
Is Diamond Capital a "value" manager? This is diversified geographical and sectorial stock picking long short Fund, with equities trading above (shorts) or below (longs) their intrinsic value. A company's growth prospects are however an important elemnent of a company's instrinsic value.
When did Diamond Capital start? Diamond was founded on the 1st of January 2001.
Is Diamond Capital a hedge fund? No. The strategy of the fund is to generate maximum absolute returns. So the fund can be 100% long, 100% short or any where in between. The fund does not try to be market neutral - which is a sub-optimal long term investment strategy.
How can you possibly cover thosands of companies on the key global stock markets. Porfolio performance is built one investment at a time. Successful investment decisions are based on prudent expectations of rising profits, not an idea or a theme. Bottom up fundamental analysis is invaluable to determing the price at which to buy and the price at which to sell.
How long should I remain invested in the Fund? The power of compounding becomes significant over time. Market conditions vary from time to time, but the longer you invest, the more chance you have of receiving high absolute returns.
Surely small funds have a disadvantage over the large institutional funds? The large managers surrender flexibility and have difficulty in bringing their substantial resources to bear. Benjamin Graham never did a single company visit.
What is your view of the Rand? Currencies are notoriously difficult to forecast. In 2001 the rand at 13.5 to the USD was cheap, but now below 8 it is back in fundamentally expensive territory.
Why are you not a BEE company? The Fund puts the interests of investors before the owners of the business. Meritocracy is the foundation for long term investment success, not BEE credentials to aid asset gathering.
There are 8 primary ways in which DCF differs from other investment management firms: 1. We focus on absolute returns and have a long term track record of achieving this; 2. The investment process is research intensive, clearly defined and has been consistently applied for 12 years; 3. The Fund Manager has 18 years of portfolio management experience; 4. The opportunistic investment approach provides flexibility that large managers lack; 5. The Fund is concentrated in high conviction / high quality investments; 6. The focus is long term investing, not short term speculating; 7. The manager is heavily invested in the fund. We prosper only if our investors prosper; 8. We are focused on only one target, managing the fund and are not distracted by anything else.
What is your goal? To provide financial peace of mind for our investors by generating superior investment returns.
What are your competitive advantages? A. Follow a disciplined process of proprietary fundamental research. B. The small Fund has a large opportunity set of under researched stocks to pick from. C. The Fund has low portfolio turnover and follows a "long term" investing philosophy. D. Geographically isolated from all the daily noise and distractions of Wall Street.
   
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