Anatomy of the Meltdown 1998-2008
|I created Capital Max in 1998, as a privately owned Investment Advisor whose mission is to add long term value. Based in Palm Beach Gardens, Florida, with outside advisors in Europe and Asia, we are registered with the S.E.C. under CRD # 137539.
In 1998, the financial industry was starting to lose its identity. Most independent investment banks were being sold to commercial banks and were focusing on generating merger synergies. No-thrill Internet-based services, at the other extreme, were providing investors with a maze of information at no cost. Both models were transaction-based, as opposed to relationship driven.
The result was to be expected. Without regard for the true value of the innovations that were taking place, and without regard for the risks investors were able to assume, the financial industry created a bubble which ultimately lost investors trillions of dollars. The Internet was first, then came Enron, Worldcom, Adelphia... Sarbanes-Oxley was enacted to “protect” the pensioner and the public at large.
The corollary was a shrink in conventional Wall Street sell-side research and an increase in risk premiums. Hedge funds blossomed, aiming to take the risk out of the investment equation. The rest is history.
As an independent “boutique” with a long bias, we are set up to provide Investment Advice “the old fashioned way”: we call on companies, we understand their business plan, we gage the credibility of management. Then we assess the risks – technology, execution, valuation.
Our clients are institutional money managers, affluent private investors and corporations. They look to us as a sieve. We gather information from a variety of sources whose trustworthiness we constantly review. We listen to our clients as they often themselves detect changes in the market place. Our aim is to validate their thought process and help them quantify the risk-reward-time equation.
|Asset Management for Institutions and High Net Worth Investors
127 Dalena Way, Palm Beach Gardens, FL 33417 – U.S.A. – Tel: 1-561-493 7077
www.capmax.com • www.theotherstreet.net