AN INTRODUCTION TO MFM CAPITAL MANAGEMENT, INC
INVESTMENT ADVISORS
WHO WE ARE.... MFM Capital Management, Inc. is a licensed investment advisor, registered and licensed by the Florida Department of Securities.
WHAT WE DO.... We manage investment funds for individuals, corporations, trusts and estates, and render opinions as to the suitability of investments for clients.
OUR INVESTMENT PHILOSOPHY.... Centers around a basic principle of preservation of capital. The Fixed Income style is managed toward maximizing yield advantage, within the boundaries of prudent portfolio risk. The Equity style often utilizes various hedging strategies designed to minimize risk, while achieving a satisfactory consistent return. Client accounts are monitored to avoid extreme volatility value fluctuations. We do not chase the market to be fully invested, nor are we market timers, shifting entire portfolios into full buy or sell modes.
OUR INVESTMENT STYLE.... Fundamentally, a bottom up style, focusing on companies with earnings momentum, attractive dividend yield, technically favorable, and relative market valuation.
WHAT WE SEEK.... We seek to achieve a consistent growth of funds utilizing a low risk strategy with our client funds. In conjunction with input from our clients, we formulate an Investment Policy that sets the parameters under which we invest their funds. Our Equity portion seeks those investments that can achieve a 8-12% return, while our Fixed Income portion seeks to limit volatility with a 4-6% return. To enhance yield to the portfolio, and minimize risk, we may from time to time, utilize hedging strategies that seek to capture additional dividend income and capital gain returns.
WHAT WE DO NOT SEEK TO ACHIEVE.... Are results that would cause the principal of the portfolio value to endure unnecessary price fluctuations, rendering extreme losses of capital.
OUR TRACK RECORD.... In a word CONSISTENCY. Our Equity, Fixed Income, and Balanced portfolio accounts have consistently seen growth in the value of their accounts over the years under our management.
TYPES OF INVESTMENTS WE MANAGE.... Our Equity positions generally focus on common stocks, primarily with option availability, that usually pay dividends, represent good value, with a stable management team, where we can also initiate option strategies, in an effort to achieve additional income or hedge risk. The Fixed Income management style, will tend to focus on specific US Treasury or corporate securities, mutual funds, and similar type investments. Most mutual funds are primarily no-load funds with low operating expenses. The Balanced account sector usually employs a blend of both of these management styles.
DO WE GIVE GUARANTEES.... No. Past performance also is no assurance of any future results. However our style has always consistently performed within the confines of preservation of capital, rather than how much we earn on investment.
WHY WE SHOULD MANAGE YOUR MONEY.... We are investment advisors, not brokers or financial planners. Our opinions and management style is based solely on achieving consistent satisfactory returns for our clients. Our style and strategy focus upon a proper risk versus reward balance. We try to achieve a conservative consistent rate of return on a annual basis, neither sacrificing principal or liquidity for any expected return.
TYPES OF REPORTING.... Each month you receive a statement from the custodian detailing your holdings. In addition, each purchase or sale made in your account is confirmed and sent to you. Each quarter MFM Capital Management provides a report that highlights the activity in the portfolio during the quarter, and includes a narrative summary of the that activity. We also chat with our clients often, either by mail, phone or other method regarding their portfolio account and our strategy for future management.
HOW MUCH IS NEEDED TO INVEST..... In order to minimize fees and transactions costs, the minimum to open an account is $15,000 in cash or securities. For comprehensive management account services, that includes full portfolio reporting the minimum is $50,000. For option hedging, the minimum is $25,000.
WHAT ARE THE FEES.... Since we are compensated solely by consultation or management fees, we receive no remuneration from the sale, recommendation or referral of any investment product, nor do we participate in receiving any 12B-1 fee income from mutual fund companies. Our current fee is $160.00 per hour for investment consultations. For managed accounts the fees generally are 1% on Fixed Income and Equity portions, and 2.0% on funds utilizing option hedging strategies. Most accounts normally average a 1.25% annual fee on the total account value. A $300.00 yearly minimum fee applies for all accounts. For managed accounts receiving comprehensive portfolio reports, a yearly minimum fee of $750.00 applies.
HOW DO YOU GET PAID.... Management fees are remitted quarterly and disbursed directly from the client account by the custodian.
HOW DO I LEARN MORE.... Further information such as PART II of Form ADV filed with the State of Florida Division of Securities is available free of charge upon request. The document details further information on management style, types of investments we manage, and other general information.