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Modern Capital Management Co.

A Modern Approach for the Modern Professional

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Fund Advisors (MCTOX / MCTDX)

Modern Capital Management is the investment manager for our flagship Modern Capital Tactical Opportunities Fund. The fund aims to provide income and capital gains by investing in a significant portion of the portfolio in closed-end funds, exchange-traded funds, single equities, fixed income and ADRs.

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Institutional Asset Management

We work with institutional clients on building unique asset allocations and managing tailored portfolios that suit their individual needs. Our CIO and capital markets group works with every client individually to ensure that return and risk expectations are balanced across the specific needs of every institution.

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International Family Office Advisory

We build global partnerships and institutional links with international banks and investment managers to help clients diversify their geographic risk and increase potential investment opportunities for international, non-US domiciled clients.

WHO WE ARE

WE BELIEVE...

  • Markets behave as efficiently as market participants account for them, which can lead to discrepancies and opportunity
  • Markets trade efficiently with regards to price but not necessarily value
  • Over time inefficiencies tend to reduce which can present attractive exit points

AND THEREFORE, SEEK TO...

  • Buy securities that are trading at levels that represent a discount to their historic net asset value (NAV) or multiple.
  • Purchase securities that are mispriced due to short-term negative events or presence in out-of-favor sectors.
  • Sell securities in sectors that have appreciated ahead of their historical means.
  • Invest in closed-end funds that provide dividend payouts during the holding period.

SOURCING AND EVALUATION

A broad scope of market factors are considered, and may vary from time to time, depending upon the portfolio's current composition. The team seeks to:

  • Establish a general market outlook.
  • Evaluate and constantly monitor all closed-end fund market segments.
  • Assess the capital markets, geo-political and macroeconomic environment.
  • Identify closed-end fund classifications that display significant pricing inefficiencies.

RESEARCH & ANALYSIS

Once a thesis is established, the in-house research team evaluates targeted ideas, based on the critical characteristics, including:

  • Liquidity
  • Underlying securities
  • Historical performance
  • Fund management
  • Gap between share price and NAV
  • Source of discount
  • Leverage percentage
  • Expenses/fees
  • Tax considerations
  • Dividends & Dividend date
  • Comparables with ETFs and open-end funds

TRADING & EXECUTION

The team trades across all sectors and market capitalizations

  • Portfolio typically contains 40 to 80 total long positions in CEFs, ETFs, ADRs and Equity & debt instruments.
  • Average time horizon is less than one year.
  • Actively managed averaging over 300 trades per month.
  • Utilize cash as a tactical allocation.
  • CIO controls final decisions regarding significant position changes and/or portfolio rebalancing.
  • Tactical trading ensures optimal positioning, attractive entry and exit points and takes advantage of market volatility.

PORTFOLIO MONITORING

The portfolio team convenes for a formal discussion to:

  • Challenge research assumptions.
  • Assess the thesis through the filter of the firm's daily and longer-view trading strategies.
  • Optimize return profile by daily trading against core positions.
  • Determine if holdings maintain risk efficiency.

The Modern Capital Tactical Opportunities Fund

Let's Talk

Our consulting process begins with a discussion about your needs, your pain points, and strategic vision. Contact us to schedule a discovery call to get started.