Institutional Class Investing

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Institutional class investment vehicles. Private Capital Management clients have access to investment vehicles unavailable to the retail investor. These include low-cost institutional investment managers, fixed income investments that anchor the portfolio while providing above average returns and alternative investments that have the potential to reduce overall portfolio volatility.

Passive Investing. Like many of the largest investors in the country, Private Capital Management does not utilize strategies that attempt to pick stocks within a particular asset class. The impartial academic research overwhelmingly supports the thesis that most managers who pick stocks subjectively under-perform their market benchmarks. Of course, there are always a few stock-picking managers who do beat the market, but identifying them ahead of time is close to impossible, according to most academic literature. We also do not employ market timing. Working closely with our clients, we develop an investment plan that is adhered to with uncommon discipline.

Low Cost Investing. We keep annual investment expenses low. As an institutional investment firm we can buy discounted institutional (limited access) no-load mutual funds and invest with separate account managers. Their lower fees potentially add at least -% per year of additional investment growth for our clients. In addition, the managers we use have much lower-than-average transaction costs. This can potentially add to investment growth.