Dern Capital Management Corporation is an Investment Advisor founded in 1992. Dern Capital provides investment management services through a hedge fund and individually managed investment accounts. Our mission is to seek strong positive returns with a disciplined approach to risk management.
Dern Capital actively manages its clients' capital to maximize their returns and minimize the effects of market turbulence. In studies by Brinson, Hood and Beebower, 90% of the performance in a portfolio is determined by its asset allocation policy. Dern Capital employs Dynamic Asset Allocation, shifting its clients' assets based on Dern Capital's perception of which investments should perform well. Dern Capital's strategy is opportunistic, flexible and responsive.
Dern Capital does not rely upon a specific model to make investment decisions The markets are in constant flux and different indicators are more relevant at some times than others. For this reason, we believe that a static model trying to incorporate all indicators is not the best solution. An examination of different indicators though does help establish market bias. Some examples of indicators which may be helpful are 1) geopolitical factors, such as world events, 2) economic factors, such as interest rates, economic indicators and the business cycle, and 3) market conditions such as market activity and investor sentiment.
While these and other indicators can help assess market risk, we place a greater emphasis on market trends, which are a strong indication of how investors view the myriad of indicators. Understanding market trends can help maximize returns and preserve capital.
Capital preservation includes avoiding losses difficult or impossible to recover in a reasonable time frame. Many investors spend significant time trying to break even with their investments. While we cannot predict sudden market declines, we try to limit losses during protracted market downtrends.
If we are able to avoid a significant market drop, we should be positioned to benefit from the bull market environment that frequently follows bear markets. The flip side to avoiding losses can sometimes be becoming defensive too quickly and missing an investment opportunity. While we strive to avoid this scenario, the ultimate goal is to avoid what might turn out to be a large loss that could wipe out significant principal.
We cannot make guarantees about the returns you will achieve but we can commit to you that we will be diligent about risk management, which we believe will pay off over the long-term.