The investment industry structure has given way to two models by which firms pursue profitability:
SCALE MODEL – Investment firms become asset gatherers. The key drawbacks are underserviced clients, generic products and underperformance of investment products.
JACK OF ALL TRADES OR PRODUCT-DRIVEN INVESTMENT FIRMS – also known as onestop-shops. Firms seek to maximize revenue per client by offering as much products to the client as possible. The key drawback is the quality of such advice and once again investment performance. The old adage rings true “Jack of all trades, Master of none”
Capicraft is a different breed of investment firm. We are an Investment-driven as opposed to Product-driven investment firm. Most investment firms fall for the “siren song” of size. Furthermore, in pursuit of size, they add evermore capabilities contributing to the complexity of the firm. The firm migrates from being investment-driven to product-driven and the ultimate victim is investment performance.
CAPICRAFT IS COMMITTED TO AN INVESTMENT-DRIVEN PHILOSOPHY AND SUPERIOR INVESTMENT PERFORMANCE. WE WILL THUS KEEP OUR INVESTMENT OFFERING FOCUSED AND OUR ASSET GATHERING AMBITIONS IN CHECK.
- Specialized investment expertize – (not just another Jack)
- Direct route to Investments – (cut out the middleman)
- Bespoke investment experience – (Handcrafted Investments)
- Exclusivity – Service Only Sophisticated Investors
- Simplicity and Focus
- No holds barred Investment approach which increases Manoeuvrability and Flexibility
- We serve the investment portfolio and not the investment company.
- A select clientele affords us longer term investment horizons not common with institutional investors.
- We are sacrificing assets under management, but that affords us:
- greater liquidity;
- the ability to get into decent assets at an early stage;
- and ultimately better investment performance.
- We are “benchmark agnostic”, this affords us:
- greater flexibility;
- greater focus;
- and ultimately uncorrelated investment return
Our foundational understanding of the marketplace differentiates us from conventional thinking.
Key to our philosophy is the embracing of:
- Consciousness – Markets are social structures and exhibits consciousness. Markets should thus not be approached like a natural science but as a social science;
- Humility – It is therefore much more difficult to make definitive statements about markets. Humility is a prerequisite for learning.
- Adaptability – Social systems like markets adapt over time and a prerequisite for survival and success is adaptability.
- Conviction – The holding on to a fundamental inner rational of investing in contrast to reactionary investing which is unduly influenced by the external movements of the market.
- Elevation – To see the forest for the trees requires broadening of focus and an expansion of time horizons.
- Narrative – Investing, like life itself, comes to us more as a story and less like a math problem.
At Capicraft we believe that an investment in a security is an investment in the long term competitive position of an organization.
Competitive positions are dynamic and changes over time as competitive forces play out. Conventional investment metrics, however , won’t capture these forces adequately. For that reason……
CAPICRAFT BASES ITS DECISIONS ON:
- The long term ability of the investment to deliver returns
- The business model of said investment
- The core competencies of a business
- Business risk and financial risks as opposed to only volatility
- Industry forces in which a business operates
- The quality of earnings as opposed to a fixation on the quantity of earnings
- Management, its strategy and corporate culture
- Balance sheet strength and quality of balance sheet items
- Cash-flow generation and capital expenditure
“Knowing what to look for” – the key differentiator between investment decision makers.
THE ADVANTAGES OF USING A SEGREGATED PORTFOLIO
- Allows bespoke portfolios.
- REGULATORY SAFETY: funds and instruments are kept by a custodian on a nominee account which is certified by a securities exchange.
- LEGAL: separation of assets from the management firm, the securities broker and other investors.
- TAX: transfer from broker or portfolio manager without any tax consequences.
- Cost effective.
- A more tangible investment experience.
- Direct access to the portfolio manager.
- Suitable for all legal entities.
Type of Clients
- Investment mandate is given to Capicraft.
- Tailor portfolio from one of our strategic mandates.
- Mangement fee of 1.5% Per annum or a performance fee structure.
- Capicraft earns no brokerage from managed portfolios.
- No upfront fees and no exit fees.
- Minimum of R500 000.
- Investment discretion belongs to the client.
- Client pays a competitive brokerage per trade.
- Local and all major international markets.
- State of the art trading platforms.
Pro Active Advice
- Client enters into an advice agreement with a portfolio manager.
- Discretion belongs to the client.
- Client pays a combination of brokerage and an advice fee.
- Minimum R10 000 000.
- Strategic asset allocation and a composite benchmark.
- Negotiable fee structure.
Enhanced IncomeFor investors who require a steady and above average after-tax income yield. The portfolio also serves as a low volatility store of liquidity. To download the PDF click here
Read More >>
Flexible GrowthThe Portfolio offers the “best of both worlds” in that it invests in a combination of local and global companies. A high conviction concentrated portfolio for superior long term capital growth. To download the PDF click here
Read More >>
Global GrowthThe Portfolio seeks to invest in the best long term opportunities on offshore equity markets. A high conviction concentrated portfolio for superior long term capital growth. To download the PDF click here
Read More >>
Meet our team member
Founder and CEO: Drikus Combrinck
Drikus started out his career as an Investment Analyst at investment data provider McGregor BFA while studying B.Com Investment Management at the University of Pretoria.
He then joined PSG Konsult in 2007 as a Junior Stockbroker and quickly advanced to become a partner and director at PSG Pretoria East in 2010. Here he headed the Equities division, leading a team of traders and analysts which oversaw R8 billion in assets. Drikus is also a CFA Charterholder and was awarded PSG Konsult’s Stockbroker of the year award in 2014. In middle 2014 he resigned from his position at PSG and took up a sabbatical to rekindle his passions and his faith. He then founded an independent investment service company, “Capicraft Investment Partners”. Drikus regularly features in investment publications, participates in investment radio talk shows and is also active on twitter. Drikus has a Christian Worldview. He enjoys the outdoors, adores his wife and humbly integrates his faith with his life.