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Who We Are
Focus
M Street Capital is a Boston-based Registered Investment Advisor. Our mission is to deliver
the finest client centric, conflict-free-investment management advice in the industry. This
requires a primary focus on analyzing investments and financial markets, not selling
products. Today’s advisory landscape is often outsourced, wrapped, bundled, packaged
and sub-advised, typically delivering a “manage the managers” solution. We believe in an
approach rooted in analysis, not scalability.
Perspective
M Street Capital takes a global approach to investment management. In today’s interactive
world, investment plans must encompass international considerations, such as global
capital flows and liquidity, worldwide political change, economic-interdependencies, and
currency fluctuations. We believe this global perspective is necessary in designing
dynamic allocations that reflect these complexities in an ever-changing world. Managing
generational wealth today and in the future requires a firm understanding of why markets
and prices move.
Our goal is to bring exhaustive effort, analysis and execution to portfolio
construction and wealth management.
Defining Analytics
Our advice is the result of assimilating your needs with our investment and market analytics.
While successful investing often requires a combination of art and science the foundation
must be a strong process that enables prudent and opportunistic decision making on your
behalf. We strive to create asset allocations for our clients as opposed to finding clients for
our allocations.
Listen, work, execute
We formed M Street Capital to provide a considerably different wealth management
experience. We truly enjoy doing the work and analysis required to deliver on all your
financial needs today and in the future. We endeavor to organize and simplify your life by
delivering a remarkably vigilant and comprehensive wealth management experience.
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Thinking Outside the Box
How We Manage Your Assets
At M Street Capital, we utilize a two-tier approach to asset allocation.
Bonds
1) We Begin with a Client Allocation.
The first step is developing a core asset
allocation, which is the result of the
information- gathering process that
assimilates your unique needs, aspirations,
objectives, goals,
behaviors, personalities and time horizons.
Stocks
Real Estate
Client
Allocation
Currency
Commodities
Cash
Market Allocation
2) We Optimize with a
Market Allocation
Bonds
Next, we create and monitor our
market allocation. This allocation is a
current reflection of our analytical
process, which serves as an
optimization tool for the core client
allocation.
We believe this tactical overlay leads
to a more dynamic and adaptive asset
allocation, better equipped to meet
challenges and embrace opportunity.
Stocks
Real Estate
Client
Allocation
Cash
Currency
Commodities
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Four-Tier Analytic Process:
The backbone of our investment methodology is our four-tier analytic process.
The desire to simplify and scale often leads our industry to focus on only one or possibly
two forms of investment analysis. The most common forms of analysis have been
fundamental analysis and technical analysis.
Our desire to better understand markets and improve our advisory capability leads us
to incorporate two additional forms of analysis generally ignored in the advisory
business: cyclical analysis and capital flow analysis.
We believe it is vital to understand economic and business cycles, as well as global
capital flows, when analyzing investments
Fundamental Analysis
Capital Flows
Market Allocation
Client
Allocation
Technical Analysis
Asset Classes
Cyclical Analysis
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1. Fundamental Analysis:
Fundamental analysis is the most common form of research used to analyze investments.
At M Street Capital, we focus on using this form of analysis to help uncover potential
mispricing in securities. We use our independent platform along with new technologies to
compare, contrast, and aggregate the analytics of our favorite Wall Street analysts, mutual
fund managers, and hedge fund titans.
Warren Buffett
Peter Lynch
Ben Graham
Dividend
Income
P/E
P/S
EBITA
P/B
PEG
EPS
Fundamental
Analysis
Value
Growth
Debt
Leverage
Balance
Sheet
Income
Statement
2. Technical Analysis:
We believe technical analysis helps show where we have been and assess where we may
be going. Its relevance is validated by the overwhelming majority of global institutional
trading desks that incorporate the study of price to their trading platforms. At M Street
Capital, we use technical analysis as a pattern recognition tool that identifies trends in
motion. We also consider it as a framework for better understanding behavioral finance
and quantitative analysis
Resistance
Technical Analysis
Support
OBV
MACD
Stochastics
A/D Line
Relative Strength
Price
Moving
Average
-60 Day
-30 Day
Channel
Analysis
Volume
Bollinger
Bands
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Time

3. Market Cycles Analysis
At M Street Capital, we view market cycles as more than simply the concept of history
repeating itself. There is evidence of cycles existing in nature, geology, weather, mathematics
and physics. We believe cycles can also be found in business, economics, and varying asset
classes. Our objective in studying cycles is to uncover relationships and patterns that help
us better understand market behavior today. While the strength and duration of cycles
differ, their rhythms provide a sense of time and space, enabling us to be more patient and
rational when evaluating opportunities and risks.
Dow Jones Equity Cycle
Up Markets
Sideways or Down Markets
Market Performance
21 years 8 years 17 years 20 years 16 years 19 years 10 years
1902 2014
4. Global Capital Flow Analysis
At M Street Capital, we believe understanding where and why capital is moving around the
globe is paramount to understanding market movements. Capital flows globally, to different
countries and asset classes, based on currency fluctuations, fear, greed, risk, reward, and
opportunity. Assessing and tracking this flow provide insight that is often not discernable
when just viewing the fundamentals.
Bonds
Currencies
Confidence
Supply/
Demand
Equities
Debt
Private vs Sovereign
Velocity
Real Estate
Inflation/Deflation
World Reserve
Currency (USD)
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Client Allocation + Market Allocation
= Optimized Client Portfolio
Client Data Gathering
Security Selection
Asset Allocation
Technical
Analysis
Fundamental
Analysis
Diversification
Deep Study
of Economic
and Market
History
Charting
Pattern
Recognition
Moving
Averages
Trend Lines
Channel Analysis
Momentum
Indicators
Valuation Ratios
Intrinsic Value
Dividend
Analysis
Historical
Valuations
Management
Quality
Global Valuation
Correlation
Current
Market/
Economic
Conditions
Study
Of Market/
Business
Cycles
Study of
Behavioral
Economics and
Quantitative
Analysis
Client Allocation
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Market Data
Fundamental
Analysis
Technical
Analysis
Capital Flow
Analysis
Cyclical
Analysis
Market Allocation
Client
Allocation
Market Allocation
Optimized Client Portfolio
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The M Street Capital Difference:
Standard Portfolio
Allocation
Security
Selection
Traditional allocations are often static and
under-diversified. Correlation assumptions
are accepted as fact, and the time frames
used to support the data are often too
short to offer any future reliability.
Allocations are often based primarily on
answers to a risk tolerance questionnaire
signaling what percentage of stocks and
bonds you should own in the future.
Buy, sell, hold recommendations dictate
the inclusion in or exclusion from an
investment portfolio. Mutual funds are
chosen based only on Morningstar fund
ratings, while stocks are often selected
based on a single firm’s analyst recommendation.
The inclusion of proprietary
products also clouds the selection
process.
Volatility
Volatility equals risk in terms of portfolio
construction.
Market
Timing
Returns are captured by simply
maximizing time spent in the market.
Objectives
Objectives
Client objectives may be overshadowed by
firm objectives.
Maintenance
Performance
Portfolio changes are often reactionary,
reflecting behavioral biases.
Performance is measured on a relative
return basis. One, three and five year
annualized performance figures are
standard.
Formula
Summary
Choose from three to five standard
allocation templates.
FIT CLIENT TO PORTFOLIO
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How we are different from other Advisory Teams.
M Street Capital
Our allocations are stress tested through
varying historical environments and time
frames, providing rigorous and meaningful
diversification benefits. We believe current
economic policy and global capital flows
affect performance and correlations
moving forward. Ignoring these factors
may result in portfolios that don’t deliver
on their desired objectives.
We respect the merits of both fundamental
and technical analysis. The fundamental
foundation of our security selection is
grounded in long-standing value investing
principles. We want our portfolios to be
anchored in a time-tested, stable strategy.
Technical analysis offers assistance in terms
of security entry and exit points. Relative
strength and momentum- based strategies
have proven to be excellent shorter-term
overlays complementing our portfolio anchor.
Allocation
Security
Selection
Volatility is certainly a component of
risk, and managing it can yield benefits.
While volatility indeed represents
uncertainty, opportunities are often
born of uncertainties and market
dislocations. We seek to take advantage
of opportunities presented by volatility.
Assuming markets are always efficient
ignores market valuation, market cyclicality
and human behavior. As the risk-reward
relationship varies, a better way of achieving
a consistent level of expected returns is to
adapt to changing market conditions.
We understand that every allocation must
ultimately be a reflection of your needs
and aspirations. Our job is to help you
navigate your journey, not ours.
Volatility
Market
Timing
Objectives
We design dynamic portfolios that seek to
compound in various market environments.
We focus on actual returns on your money.
Annualized performance is incredibly
misleading, as it is not a representation of
how your own portfolio may or may not
have compounded.
Active and adaptive asset allocation + margin
of safety = long-term positive compounding.
FIT PORTFOLIO TO CLIENT
Maintenance
Performance
Formula
Summary
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Planning and Retirement
M Street Capital believes that a thoughtfully
constructed financial and retirement plan
should provide a valuable road map to
organizing and ultimately accomplishing all
that is most important to you and your
financial well-being.
We want this plan to be a living and
dynamic instrument that provides you with
a secure foundation from which you can
make future decisions. Accomplishing this
task is not easy, and we understand well
that the integrity of any complex financial
plan can only be maintained when the
inputs are realistic. Unfortunately, we
believe much of the software and
assumptions utilized in today’s technology
do not reflect present “real-world”
conditions.
As is the case with most tools, if the inputs
are flawed, the outputs are often less than
reliable.
The M Street Capital approach is
different in three key ways:
1) We use the same care in choosing our
inputs (capital market assumptions) as
we do in our investment process. Simply
accepting software defaults based on
someone else’s historical data set is rarely
optimal when constructing forward-looking
plans
2) We prudently account for unknown or
“tail-risk” events that may impact shorter
term outcomes, unlike many peers who rely
only on Monte Carlo simulations that do not
fully account for such unforeseen scenarios.
3) We review and recalibrate when market
dynamics and personal circumstances
dictate. By taking the responsibility to
understand and manage the many variables
present in your plan, we can offer you the
greatest confidence in achieving financial
success as you define it.
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Our Core Commitments
1) Listening
M Street Capital is committed to listening
before constructing or formalizing any
investment plan, and client collaboration
during this process is extremely valued and
honored. This may sound trite, but we
believe it is vital to a lasting partnership.
We feel ongoing communication is a staple
in a great relationship. Clients are strongly
encouraged to call with questions and
concerns, even after business hours. We
make ourselves available around the clock,
regardless of how big or small your issue
might be.
2) Goal-focused execution
Many advisors believe that great returns
are captured by maximizing time spent in
the market. Our research and experience
show that missing the worst days of market
performance is more important than
capturing the best ones. We are advocates
of keeping a margin of safety that allows
you to be opportunistic in any market
environment.
3) Innovative and adaptive
portfolio design
Your needs are evolving, varied and
distinct. Your portfolio design must be able
to adapt and reflect this reality.
4) Exclusivity
We are a small, independent firm specializing
in investment management. We are so
passionate about empowering clients that
we limit the number of relationships we
take on.
5) Teaching the next generation
We are dedicated to our craft and committed
to teaching the next generation what we
have learned and continue to learn.
We encourage our family clients to engage
their children. We set aside time to teach
and answer all questions their children may
have with regard to investing and planning.
6) Best practice
We strive to provide focused and meaningful
advice. Our service model is designed to
meet your individual requirements.
Our core beliefs and operating guidelines
Be kind.
Work solely for the benefit of our
client.
Innovate, research, fact-check.
Understand what you can and cannot
control.
Always ask why. Verify the data.
Learn from mistakes.
Always keep a margin of safety.
Focus on actual return outcomes,
not annualized returns.
Respect the mean while understanding
we often operate outside that mean.
Remove emotion and bias from the
decision-making process.
Take advantage of the greed and fear
that is present in the market.
Saving can be more important than
investing.
Patience is an asset, not a liability.
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Tying It All Together
Managing your finances can be complicated and time consuming. We seek to simplify
where appropriate, coordinate as necessary and streamline the management of your assets
and liabilities. We strive to address your current and future concerns effectively, so that
you are able to live the life you have dreamed of.
To that end, we offer an extensive array of services including:
Investment Management
Asset Allocation
Portfolio Construction
Portfolio Maintenance
Planning (in-house)
Financial Planning
Retirement Planning
Risk Management and Asset Protection
Executive Compensation
Concentrated Stock Options
Family Administration (in-house and
coordinating with outside counsel)
Family Governance
Generation Planning
Wealth Transfer and Estate Planning
(in-house and coordinating with
outside counsel)
Estate Planning
Trust Coordination
Charitable Giving
Succession Planning
Tax Services (coordinating with
outside experts)
Tax Planning
Tax Preparation
UNHWI Portfolio Consulting
Complete Analysis of Existing
Investments, Allocations and Fees
At M Street Capital, we believe there is a better way to manage your assets
and exceed your expectations. We want to partner with clients who share
our passion for excellence.
We invite you to find out more about M Street Capital. For more information,
or to discuss your situation, please call us at 857.233.5383
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109 State Street Suite 302
Boston, MA O2109
Ph. 857-233-5383
Fax. 857-233-4683