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Investment firms come in all shapes and sizes. The rare find is an investment firm with a history spanning half a century, a verified record of investment results, and a close, personal relationship with every client.
Capital Management Corporation (CMC) is one of those rare finds. Named one of the Top 300 Financial Advisors in the U.S. in 2018 by Financial Times, CMC is an employee-owned, fee-only Registered Investment Advisor (RIA) serving institutions, foundations, and high-net-worth individuals nationwide. In business since 1964, CMC has a verified performance history going back over 20 years, with many of its clients’ portfolios going back even further.
“We have always taken our fiduciary duty and our advisory role very seriously,” says President/CIO Tim Call. “We believe our high service and performance standards and our track record speak to that.”
“To have a decades-long history
of audited investment results,
and direct client contact, is
unique in our industry. Our
clients can pick up the phone
and talk to the people who are making investment decisions
in a fiduciary manner on their behalf—and who know them well.”
– Tim Call, President/CIO
CMC’s proprietary investment strategy is designed to produce a diversified but concentrated portfolio. The team begins by screening almost all stocks traded in
the U.S., narrowing the list based on long-term factors such as cash flow generation and cash flow growth. The remaining companies (the top 5%) are ranked by valuation and future prospects. Composites are then created from these “best ideas,” with 12 to 35 stocks in each composite. After factoring in the client’s preferences, life stage, and goals, the team recommends a strategy of “best ideas.”
“We don’t have to participate in every area of the market,” Call says. “We can concentrate in areas where we find above-average growth and attractive valuations. This can be any industry or sector—small caps, midcaps, and large caps. We go wherever the best opportunities lie.”
As a Global Investment Performance Standards (GIPS®) compliant firm, CMC voluntarily exceeds basic legal reporting requirements to offer investors the assurance of transparency and sound, ethical practices.
“Most firms don’t go through this process,” Call says. “We choose to undergo these audits because we want our clients to feel confident, and we value their trust.”
Initially, the CMC team meets with new clients several times to understand their perspective and answer any questions they might have. The investment committee meets weekly to review portfolio investment strategies and discuss market changes and opportunities, disseminating breaking news in real time. Clients are encouraged to meet with their advisors quarterly, in addition to receiving quarterly in-house newsletters and reports.
“We also work with clients’ outside financial and legal advisors for no additional fee,” Call says. “Many of our clients prefer we do this directly so they can focus on living their lives. Our clients know we’ll always look out for their interests, be available when they need us, and make investment decisions that make sense for them.”
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