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Investment Portfolio Management Services Peridot Capital Management providers its clients with
customized investment portfolios designed by a professional investment manager. These
portfolios are designed to attain superior investment returns based on the clients'
personal goals and ris 1) Personalized Investment Strategies The first thing we do is find out what a client's goals are. After an objective is identified, we can build a personalized investment strategy aimed at meeting that objective. Our goal is to implement an investment strategy that has an extremely high probability of achieving the stated objective, while taking the least amount of risk possible to do so. Only after we know what the client is trying to accomplish can an appropriate asset management strategy be crafted. 2) Independent and Unbiased Investment Recommendations Peridot Capital offers two unique differences from a traditional stock broker or financial advisor. First, we do not get paid by commission. Sales commissions incentivize investment salespeople to pitch products or services that charge high fees. Stock brokers and financial advisers often try to sell clients products (annuities and certain mutual funds, for instance), not because they are wise investment vehicles but because they bring in huge commissions. Many brokerage firms steer clients toward certain mutual funds because they have revenue sharing arrangements with them but clients are under the impression that a certain fund is the best option for them. Brokers who trade mostly in stocks have an incentive to trade more frequently than is needed in order to generate more commission dollars for their firm, and as a result, themselves. Not only does Peridot Capital never charge commissions to its clients, but we also do not take any money from any company for any investment product or service. We take investment advice with no conflicts of interest very seriously because it allows us to make sure our recommendations to clients are always in their best interest. Second, we do our own independent research and the same person doing the research on potential investment opportunities is also the person managing the client's account. Stock brokers typically do not have finance backgrounds, but serve as salespeople. They recommend investments that their firms are intent on selling. These can be mutual funds their firm gets paid to sell, or a stock the brokerage firm's analyst recommends. Unfortunately, academic studies have shown that Wall Street analysts are sub-par when it comes to picking winning stocks. One study in particular found that the average brokerage firm stock recommendation not only trailed the S&P 500 index, but did so with more volatility than the market itself. While one might accept more volatility in return for superior investment performance, brokerage firm recommendations actually have failed to provide either over the long term. Peridot Capital's approach to picking stocks is quite different that traditional brokerage firm recommendations. You may read more about our investment philosophy on this site. 3) Complete Transparency and Instant Account Access Transparency has become a hot button issue. Many high profile hedge funds have gone out of business due to bad investments or outright fraud. Investors in those funds had no way of knowing exactly what their money was invested in. Many hedge funds refuse to disclose their holdings, and if they do it is often only a handful of times per year and the reporting is delayed by months at a time. Mutual funds, likewise, are only required to report their holdings twice a year, so knowing exactly what you are invested in can be quite difficult. Peridot Capital manages
accounts with brokerage firms that offer instant, real-time access online. This not only
allows us to manage accounts easily and minimize trading costs, but most importantly it
ensures that clients can see their investment portfolio in detail any time they want. Because Peridot never ta 4) Direct Communication With Your Investment Manager Many stock brokers rarely return client calls in a timely fashion. Hedge fund managers are even harder to get in touch with. If you own a mutual fund, good luck calling Fidelity and getting someone to put you through to the fund manager in charge of your account. Peridot Capital takes a different approach. We are a small firm in a big sea. We don't spend heavily on advertising and most of our new clients are gained from word of mouth referrals. Staying small allows us to not only know each of our clients well, but also to be there for them to answer their calls promptly or reply to an email quickly. The vast majority of the time we will pick up the phone the first time you call, or at the very least return your call or reply to your email inquiry the same day it was received. This level of service is something we believe clients should expect from an investment manager. 5) Management Fees Now that you have read about how our investment management service works, you are probably wondering how much it costs. Our objective when determining our annual management fee was to align our interest with those of our clients and offer a service that is superior to most of the other options available, all for the same price most of the less attractive offerings charge. We believe the result is a superior level of service for a price in-line with industry averages. Our fee scale (shown below) was
created by using industry averages because our goal is to provide better services for the
same price investors are already paying. Our fees are calculated as a percentage of total
assets in order to align the interests of both the client and the investment
manager. If the client ma
Please Note: While the fee schedule above
is typical, PCM's portfolio management services are
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