The MCM Difference
Established track record
MCM’s primary objective is the preservation of wealth entrusted to its care. Equally important is the growth in client portfolio value, measured by the increase after inflation and taxes.
- Past performance does not guarantee future results. MCM’s long-term historical performance compares favorably with the overall U.S. equity market.
- MCM abides by the “win by not losing” adage.
- Partners have 14 - 36 years of experience at MCM.
The right clients
The $5 million minimum relationship size exists to ensure the best possible match with clients. MCM’s assessment of “fit” is as robust as a prospect’s assessment of MCM.
- The rate of client attrition is very low.
- MCM seeks 5-7 new client relationships every year.
- Referrals constitute the great majority of MCM's new prospects.
Independent, unbiased thinking
A deep-seated rational and disciplined mindset drives MCM’s practices and priorities. All investment research is done in-house. Investment Theses are published for the exclusive benefit of MCM’s clients in order to profile and document positions. MCM’s investment philosophy is more akin to business analysis than what often passes today as security analysis.
- MCM seeks businesses where the future is generally more predictable.
- Investment portfolios are concentrated in 12-15 companies – a more-diversified approach only leads to average results.
- MCM views each investment as fractional ownership in a business.
Integrity, above all
As stewards of significant wealth, earning client trust is vital to MCM’s business. MCM strives to maintain solid and personal relationships with its clients.
- MCM always has and always will utilize a third-party custodian, in a fiduciary capacity, to physically hold securities, execute trades and collect dividends and interest.
- MCM believes and lives the “eat our own cooking” creed – partner and employee portfolios are invested in the same manner as client portfolios.
- MCM upholds the spirit of full transparency.
- MCM protects client privacy and confidentiality.
Performance-based fees
MCM is clear and outspoken regarding how the firm is compensated. The Golden Rule forms the foundation for the performance-based fee: we make money when our clients make money.
- A performance fee is assessed only if the cumulative growth in wealth created has grown to new levels. This is what is referred to as the high-water-mark.
- If the high-water-mark has not been eclipsed by the end of a quarter triggering a performance fee, MCM will assess a modest “keep the lights on” maintenance fee.
MCM Performance Fee Schedule*
Clients pay the greater of:
1) A quarterly maintenance fee
2) A 10% quarterly performance fee
A. A quarterly maintenance fee assessed as a percentage of assets:
| Assets |
Quarterly Fee |
Annualized |
| First $5 million |
0.125% |
0.50% |
| Next $5 million |
0.100% |
0.40% |
| Next $10 million |
0.075% |
0.30% |
| More than $20 million |
0.050% |
0.20% |
B. A quarterly performance-based fee of 10%
*Clients pay the commissions assessed from Fidelity Investments®. Fidelity Investments is a registered trademark of FMR LLC.
