About
DCM Systematic GP SàRL (DCM) uses innovative data research and systematic decision-making tools to seek a different path to alpha. While our process is rooted in robust and rigorous application of scientific methods, we seek to be agile enough to adapt our models and methods quickly and to apply them in ways that anticipate the trades of larger managers, who tend to be less adaptable. We work hard to avoid the herd mentality that drives much alternative investing. In doing so, we work to realize opportunities which we believe others do not see.
Our organization is agile, too: lean, flat and focused solely on generating alpha. We believe passionately in our approach and we have no barriers to internal communication. We are always looking for better ways to access, understand and use the data that drive our decisions.
We also believe in open and frequent communications with our clients. We want to know what they are thinking and vice-versa. They rely on the intended robustness of our process, the de-correlation of our returns and the passion we bring to our work. When markets changes or we adapt our models, we inform our clients of these changes and the reasons for them.
Our Values
Different
We believe that the best path to seeking alpha is to part with the herd. We launched DCM precisely to create a structure where different thinking is core and where convictions, even when unusual, can be expressed in the portfolio. Rather than following the herd to a predictable and crowded position, we seek to anticipate trends and move more quickly and often in other directions. As a result, our intention is for our clients to avoid over-bought (or over-sold) trades and avoid the volatility stampedes that lead to them.
Not only are we different in the way we manage money, we are different in the way we manage our company. As a small company with a flat organizational structure, our revenue (net of expenses) is reinvested in our research to constantly evolve and adapt our models: we believe this is to be a key success factor in rapidly changing markets.
Scientific
We see ourselves as scientists who research facts within the world of finance; we believe that scientific approach to facts eventually outperforms one based on feelings.
In a world awash with financial data, often times only a few factual data streams will lend themselves to profitable investment opportunities. Since these data streams, by their very nature, are fleeting and hard to find, all our research, and the algorithms that flow from it, is designed to identify them and translate them into investable strategies.
We are passionate about data research and regularly evolve our models to adapt to rapidly moving markets and construct a solid and robust portfolio for our clients.
Data scientists call this effort looking for the signal within the noise. We call it the DCM way.
Passionate
We are passionate about three things: developing the best data research and systematic decision tools, applying them in a way that avoids the crowd and using them to add value to our client’s portfolios. We get to work early and stay late. We believe so ardently in this approach that we set up our own company to deploy it. Even though we have increased our personal risk, we are comfortable in the knowledge of the robustness of our processes.
Investment Philosophy
Our investment philosophy
is based on four core beliefs
First, that facts out-perform feelings when it comes to investment decisions. That’s why we base our process on a rigorous scientific approach, using proven disciplines, proprietary algorithms and robust data.
Second, that agility and adaptability are rewarded in portfolio performance. Markets change quickly and those most able to interpret new signals and adapt to them fluidly are likely to outperform those who do not. A rigorous yet flexible process can prove to be agile; ours seeks to be both.
Third, the search for new market signals should be as wide and deep as possible. Promising positions and new sources of alpha often originate in unexpected places. A wider field of vision helps us identify those opportunities while our data science skills mean that we dig deep into the numbers to better understand their significance.
Finally, and perhaps most important, it is our belief that risk management should not be viewed as an add-on, after-the-fact action. We attend to risk at every step of the portfolio-building process and we spend as much time and effort on understanding the downside and protecting value as in searching for alpha.
“More Alpha, Less Correlation,
Clear Communication”
Founders
Passion for performance is our primary driver. We believe deeply in the power of scientific method and the value of taking a different path in applying it. We created DCM so we can share our approach with others. Our models are flexible but our commitment to clients is not. Our clients will always know how our research is evolving and what it means to their portfolio.
Contact
DCM Systematic Advisors SA
Rue du Mont-Blanc , 7
CH-1201 Geneva
Switzerland
T. +41 24 566 70 78
investor.relations@dcm-systematic.com