PROACTIVE INVESTMENT MANAGEMENT

FOCUSED ON THE LONG-TERM AND CONTINUOUS OPPORTUNITIES

 

Technically, Two Point Capital is an active investment management firm. We are experts at evaluating and understanding risk of all kinds, and at developing the insight that leads to discovering hidden opportunities.

Our Value+Quality™ discipline keeps us focused on the long term, not today’s results, or this quarter’s results, or even this year’s results.

We are always looking to optimize the holdings in your portfolio, so we also pay serious attention to the news of the day, the week, the month, because—particularly in times of volatility—that is where opportunity lies.

In truth, we think of ourselves as a proactive investment management firm. And the more proactive we are, the more relaxed you get to be. 

Your money is managed by experts

Your portfolio manager is a Chartered Financial Analyst® (CFA®), which is widely considered to be the premier designation of education and excellence within the investing profession. Chartering involves three years of intense study, each culminating in a rigorous test. CFA designation at Two Point is only the beginning; we also deliver real-world expertise in economics, business, and financial markets.

We perform our own research and make our own decisions about the individual stocks and bonds in your portfolio. Here are just a few of factors we consider when making investment decisions:

  • The risks that companies face (industry, competition, technology)
  • The risks inherent in individual stocks and bonds (Overvalued? Undervalued? Liquidity? Investor darling or out of favor?)
  • Present and future risks to the overall economy (Stable? Sustainable? Imbalanced? Overheated?)
  • The risks of the broader financial markets (Overvalued markets? Over-leveraged banks?)

There are no middlemen between you and the people who assess and understand the risk of every individual stock and bond in your portfolio. Your relationship is with us. We think you’ve worked hard enough for your money to deserve that.  

You know how your money is being managed

We have developed a disciplined investment approach, Value+Quality™ over 30 years. We are extremely rigorous in following this approach. This makes it possible for you to understand and commit to a long-term investment strategy that makes sense to you. We don’t fly blind and neither will you.

Together, we can control your risk

We offer customized investment strategies and levels of risk depending on what you’re trying to achieve, the timeframe you have to save and invest, and the amount of risk that lets you sleep comfortably at night and live a richer life during the day.

We are a values-based firm, we do what’s right

We’ve worked for other companies. There are plenty of skilled and expert money managers in the world. But company founder Jack McGowan started his own company because he wanted not just to do it well, but to do it differently. Read more about how our values drive our culture.

You can see what we’ve accomplished so far

We have an audited track record spanning 21 years, so even though the next year will be different, you can have a sense of our performance over time. We are open and transparent.

Your money is held by a third-party custodian, for safety

Your funds are on deposit with a custodial institution (such as Fidelity or Vanguard). We have no authority to do anything with them except invest them, and we don’t invest them in non-liquid vehicles. The custodian provides you with monthly statements and easy visibility into your investments. You don’t have to worry that we are your next Bernie Madoff nightmare.

Our fees are fair, and simple, and never exceed 1% of your portfolio

We charge a 1% management fee on the first $1 million of your assets under management, and a lower fee for the balance of the funds in your portfolio. This may be in sharp contrast to what you are paying now.

Custodians charge trading fees for the sale or purchase of stocks and bonds. No part of these trading fees goes to Two Point and we work to minimize them for our clients to the extent possible.

We have always been completely transparent in our business activity

As a registered investment advisor, we fall under the oversight of the Securities Exchange Commission, or SEC. Each year, for many years, we have filed an ADV Part 2A with the SEC. The ADV Part 2A lays out all of the ways we do business, which we have summarized above for you. You can access our ADV Part 2A on the SEC website, or download our ADV Part 2A here.

As of 2020, we are required to file an ADV Part 3, which is meant to be a plain language, easy-to-read document for clients and potential clients. While we have looked forward to this requirement by the SEC for many years, in the interest of our clients having full access to all investment managers’ business practices, we are somewhat disappointed that the plain-language is so simple that it makes it difficult to discern differences between firms and managers. Again, we have highlighted what we consider to the salient information above on this page. You can read the official version on the SEC website or download our ADV Part 3 here.  

We welcome any questions you might have about these filings. If you are considering another firm, you would be wise to also look at their ADV Part 2 and Part 3 documents. 

So, how does all of this make us different?

Well, it all depends on what you’re doing now. Do you have a financial planner, stockbroker or wealth advisor; are you working with an active investment management firm; or are you managing your own money? Learn more about the pros and cons of these and other ways to manage your money on our Informed Investor page.

The categories: a brief overview of financial market services 

Most people, unless they grew up wealthy or hang around exclusively with the 1% or have had the good luck to stumble upon a true investment management firm, manage their investments through one of the sales-based approaches.

Generally speaking a planner, a broker, or a big-box company will sell you an investment package that includes a number of mutual funds, or mutual funds + a mix of commodities (gold, silver, pork bellies) and/or real estate investment trusts (REITs).

Often, the planner, broker or financial rep with whom you have a relationship (generally referred to as “my guy”) doesn’t have formal expertise in making investment decisions. He or she has experience in selling product that someone else has created. Sometimes the someone else is within the same firm, but not always.

(Planning can be helpful, though. We often recommend that clients consult with a financial planner who works on a fee-only basis, which means they are not incentivized to sell specific financial products.)

Do you know his strategy? “My guy” may know the overall strategy for each “family of funds” (oh, that’s growth) but won’t know much if anything about the individual investments. After all, there may be hundreds of stocks and bonds within each fund.

Audited results? “My guy” will most likely not be able to show you an audited record of past performance for his or her clients. He can tell you how each of the hundreds of mutual funds performed, but you’re not buying any or all of them and you don’t really know how they’re managed.

Do you know how much you’re paying? “My guy” is most likely charging you something in addition to the fees you’re paying inside the funds you own. Sometimes the fees are wrapped up in every layer of engagement — the planner has a fee, the broker has a fee, the mutual fund company has a fee, and sometimes there’s a fee that wraps around all of that. We have seen these fees amount to 4 or 5%, often without the client knowing how high they are in total.

If you are currently working with a firm that creates individual portfolios of stocks and bonds—in other words, a firm that we would consider to be in our category of competitors, we believe you will find we are distinguished from almost all of them in two important ways: 

#1 OUR VALUES

We are not in this business to acquire your assets or realize the absolutely highest possible revenue from your account. We do what we do because it is our passion to find treasures in the stock and bond markets that “win” the race. But we put our talents to use so that they benefit you and  your loved ones, first and foremost; then the community, which we hold dear; and finally ourselves. 

You can read more about our values, and how they are reflected in our culture and our community engagement; suffice it to say that we hold these because they make us feel good to come to work each day, and we hope they bring you joy as well. 

We suggest that you have a discussion with your portfolio manager about their perspective on life, the business, and you. The decisions you make about your money today will have significant effects in your quality of life, and how you spend your later years. 

#2 Our Approach

Our investing discipline was developed by our founder and CEO, Jack McGowan, and he has continuously honed it over three decades, including 21 years of audited investment results. Value+Quality is a hybrid methodology, blending two time-tested philosophies, and we have found it to deliver performance and stability in good markets, volatile markets, and not-so-good markets. 

You should ask about and understand your portfolio manager’s approach, and their track record over time.

Are you managing your own money? Or living a richer life?

If you are and you love doing it, good for you! Who could you possibly trust more than yourself? But if you’re doing it well, you know it takes substantial effort and expertise—not to mention experience, imagination, and creativity. All of which can take some time.

If you’d like to recapture some of that time—for working, sailing, skiing, tango, saving the world, or just living your life—we think you’ll find Two Point Capital to be the next best thing—since you.If you are ready for proactive investment management, we are ready for you. Let’s connect