The MCM Difference

Established track record

MCM's primary objective is the preservation of wealth entrusted to our care. We then seek opportunities for 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's emphasis on preservation of capital recognizes the critical importance of compounding over time.  We believe the first step in making money - is not losing it.
• MCM's experienced Investment Team follows the value-oriented approach of legendary investors like Benjamin Graham and Warren Buffett.  We seek bargain prices on quality investments, and buy only when we feel the odds of favorable returns are stacked in our favor.

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 cumulative wealth 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, OR
2) A 10% quarterly performance fee

More specifically:

           1.       A quarterly maintenance fee assessed as a percentage of assets:

Assets		Annualized
Up to $5 million		1.00%
More than $5 million		0.75%

2.       A quarterly performance-based fee of 10% assessed on new capital growth above

          the established high-water mark (see explanation above).

 

The right clients

The $5 million minimum relationship size exists to ensure the best possible match with clients who share the same long-term investment philosophy.

• MCM treats every client relationship as a sacred trust.
• MCM's fee structure rewards growth of capital for existing clients, not growth of the client list.
• Referrals from satisfied clients 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 and clients are provided periodic written updates. MCM's investment philosophy is more akin to business analysis than what often passes today as security analysis.

• MCM seeks businesses for which the future is generally more predictable.
• Investment portfolios are concentrated in 12-25 companies - greater diversification leads only 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. We do this in the interest of full transparency and independent verification.
• MCM rigorously protects client privacy and confidentiality.