On 28 October 1929, the New York Stock Exchange (NYSE) fell 12.8% in a single day. This crash lasted until 8 July 1932 and eventually wiped out 89% of the value of the companies listed on the NYSE. It was the beginning of the Great Depression and a period where those who have lived through it vowed never to go through such an experience again.
Putting Our Money Where Our Mouth Is
On 19 October 1987, the NYSE crashed 508 points or 22.6% in a single day, pulling markets down everywhere. The worst single day in 1929 fell only 12.8%. The world waited for what many had thought was inevitable: The Second Depression. Someone instead viewed the pessimism then as a marvelous investment opportunity. So, it all began in early 1988, when Tan Teng Boo, founder and managing director of the Capital Dynamics group, set up Capital Dynamics Sdn Bhd (CDSB), which became Malaysia’s first independent investment adviser.
In 1997, the Thai Baht plunged, triggering a global financial crisis that quickly spread to the rest of the world. In that watershed year, Teng Boo started Capital Dynamics Asset Management Sdn Bhd (CDAM), a licensed fund manager based in Kuala Lumpur, Malaysia.
On 15 September 2008, Lehman Brothers collapsed. With many other large financial institutions tottering at the same time, a global financial and economic crisis was triggered. The world again awaits with great suspense for what seems to be the inevitable: Great Depression 2. Again, Teng Boo viewed the dire situation as a great investment opportunity. In 2009, Capital Dynamics Asset Management (HK) , providing fund management services in the Hong Kong Market, was formed.
Currently, the Capital Dynamics group, located in Hong Kong, Sydney, Singapore, Shanghai and Kuala Lumpur, consists of:
(1) Capital Dynamics Hong Kong, a global fund manager;
(2) Capital Dynamics (Australia) Ltd, a global fund manager;
(3) Capital Dynamics (S) Pte Ltd, a global fund manager;
(4) Capital Dynamics Asset Management Sdn Bhd (CDAM), a Malaysia focused fund manager and
(5) Capital Dynamics Sdn Bhd (CDSB), an investment adviser.
(1) Capital Dynamics Hong Kong
Capital Dynamics Asset Management (HK) is licensed as a fund manager under the Securities and Futures Commission.
Established in 2009, its key objective is to deliver consistently superior returns to its clients. Capital Dynamics’ presence in Hong Kong serves as a platform to better provide services to clients in the Hong Kong market as the group grows and develops globally.
(2) Capital Dynamics (Australia) Ltd
Capital Dynamics (Australia) Ltd (ACN 129846260) is a Sydney-based fund manager investing globally. It forms a crucial part of the Capital Dynamics group, a leading investment advisory and fund management house in the region.
In 2008, Capital Dynamics (Australia) Ltd was set up with the aim of providing investors with access to the proven investment success of the Capital Dynamics group. Operating under the purview of the Australian Securities and Investments Commission, it holds an Australian Financial Services Licence (AFSL 326283) and manages the i Capital International Value Fund, a zero load, global equity managed investment scheme, registered in Australia (ARSN 134 578 180).
(3) Capital Dynamics (S) Pte Ltd
Capital Dynamics (S) Pte Ltd (CDPL) is a crucial part of the Capital Dynamics group.
In 2006, the Capital Dynamics group achieved a major milestone when it established CDPL in Singapore, its platform for global investing. With this, it became the first Asian privately-owned fund manager to invest worldwide. As a global fund manager, CDPL has delivered a world-class, market beating performance.
In July 2007, CDPL launched the i Capital Global Fund, an open-end, zero load global fund. Click here for Performance of i Capital Global Fund.
(4) Capital Dynamics Asset Management Sdn Bhd (CDAM)
As a fund manager, Capital Dynamics Asset Management Sdn Bhd has delivered a world class compound return of over 24% per annum, net of all expenses, since it started 10 years ago. Click here for more details on CDAM.
In October 2005, icapital.biz Berhad, a close-end fund was listed on the Main Board of Bursa Malaysia. The only listed closed fund is managed by Capital Dynamics Asset Management Sdn Bhd and advised by Capital Dynamics Sdn Bhd. Click here for more details on icapital.biz Berhad.
(5) Capital Dynamics Sdn Bhd (CDSB)
CDSB has been described as “one of the country’s most iconoclastic and critical research outfits” (Investors Digest: Mid October Issue 2001). Since 1989, CDSB has been publishing the highly respected i Capital, a weekly investment report, in English and Mandarin. In 2002, www.icapital.biz, the online version of i Capital was launched. i Capital and www.icapital.biz, have proven their capability in delivering consistently top quality investment advice.
We believe that successful investing involves the 3 ‘i‘s – Independence, Intelligence and Integrity.
Capital Dynamics is an independent fund management and investment advisory house. We are not affiliated with any financial institution, stock broking companies, political or government organisation, preventing any possible conflicts of interest from arising.
Capital Dynamics is owner-operated. For our clients, this represents the assurance of consistency and continuity in our investment approach when managing clients’ portfolios.
Capital Dynamics does not act on tips, rumours, and hearsay, but only on an intimate knowledge of investments, based on intelligent and objective analysis. Our research is independent and we have our in-house team of professionals to analyse companies, industries, markets and economies first-hand.
Our success is undeniably tied with our clients’ success. While it sounds abstract, Capital Dynamics believes that integrity will in the long run show in the investment returns our clients receive.
Our managing director, Teng Boo, has always been fascinated with the stock market, having been a “student” of the market for 37 years. He strongly believes that investing intelligently in equities will provide superior investment returns. Having seen and experienced his first bull and bear market in 1972-1973 was not enough. It was a passion that had to be whetted and Capital Dynamics was the manifestation. But having a passion, although a powerful motivating force, is not enough.
What are the choices available to investors, be they individuals, corporations or institutions, when they want to invest in the stock market? Who can they turn to for investment services without conflicts of interest?
To better illustrate this dilemma facing an investor, we quote from the book “Where are the customers’ yachts?”. Written in 1940 by Fred Schwed, it says:
“An out-of-town visitor was shown the wonders of the New York financial district.
When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor.
He said, “Look, those the bankers’ and then brokers’ yachts.”
The naive visitor asked, “Where are the customers’ yachts?””
At Capital Dynamics, we realised that there are many investors who needed a fund manager or investment adviser that has a “partnership” attitude towards clients, one whose success is unquestionably tied up with the performance of clients’ investments. There is a dire need for a fund manager or investment adviser that has no conflicts of interest, either hidden or obvious. One that has a very clear focus.
In building up Capital Dynamics as an independent, owner-operated set-up, there is really no doubt that we have put our money where our mouth is. Even though the structure is corporate, our attitude is one of genuine partnership. We do well only if our clients do well.