OUR STORY
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. CDSB also marked the beginning of a global investment advisory and fund management group.
A Short History
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.
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. CDSB also marked the beginning of a global investment advisory and fund management group.
Why Us?
“Investing is most intelligent when it is most business like”
Investment Philosophy
“INTELLIGENTLY ECLECTIC” VALUE INVESTING
Our value investment philosophy is best described as “Intelligently Eclectic.” What do we mean? Value investing has demonstrated itself as a superior investment approach over long periods of time. The objective of Capital Dynamics is to seek capital appreciation while reducing the margin of error when investing. This is achieved with arigorous, innovative and well defined value investing approach. Stock selections of Capital Dynamics are based on divergences between market prices and the underlying intrinsic values of the companies. In this way a margin of safety is built in. Guided by Benjamin Graham’s famous counsel “Investing is most intelligent when it is most business like”, the vital goal is to determine the company’s value and what is driving the valuation. Unlike conventional value investing, Capital Dynamics incorporates key macro-economic factors and takes into account the country that it is investing in. The objective of Capital Dynamics is to obtain a sound investment framework that allows it to have a clear perspective of how economies, markets and sentiment interact and how this interaction influences its investments. Capital Dynamics believes that its distinctive value investing philosophy provides it with an unsurpassed edge in identifying investment opportunities for its clients.
Experienced Leadership
Our team of professionals is headed by our highly experienced Managing Director, Tan Teng Boo. As a result of his fascination with the stock market, his working experience and academic background, he has, over more than three decades, acquired an uncanny insight into the global equity markets and the listed companies. In addition, he possesses an innate understanding of the major global economies. He graduated with honours from Sussex University, England, majoring in Economics. He is also an Adjunct Professor and Industry Fellow of University of Technology Sydney (UTS). A “fanatic’s” interest has enabled him to be very familiar with the different methods of investment analysis and approaches - understanding their strengths and weaknesses. He possesses the unique ability to blend his investing skills with his business experiences. As a result of his having a foot in both camps, Teng Boo is widely recognised as one of the most consistent and experienced fund managers.
As a highly regarded investment expert, the views and opinions of Tan Teng Boo are very frequently sought after by the media. Tan Teng Boo is the highly experienced Managing Director of Capital Dynamics. He graduated with an honours degree in economics from Sussex University, UK but his fascination with investing over more than 4 decades has led him to acquire an uncanny insight into the workings of corporations, equity markets and economies. A “fanatic’s” interest has enabled him to be very familiar with the different methods of investment analysis and approaches - understanding their strength and weaknesses and suitability of each to different investment objectives and circumstances. As a result, he has the unique ability to blend his investing skills with his business experiences. As Warren Buffett, the world renowned investor, said, “It’s been awfully good to have a foot in both camps.”
Proven Group
Located in :
KUALA LUMPUR
HONG KONG
SYDNEY
SHANGHAI
CAPITAL DYNAMICS GROUP
As a fund manager, CDAM 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 closed-end fund was listed on the Main Board of Bursa Malaysia. The only listed closed-end fund is managed by Capital Dynamics Asset Management Sdn Bhd and advised by Capital Dynamics Sdn Bhd. Click here for more details on i capital.biz Berhad.
CDSB has been described as “one of the country’s most iconoclastic and critical research outfits” (Investors Digest : Mid Oct 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.
Licensed with The Securities and Futures Commission of Hong Kong (SFC) to carry the Type 9 (asset management) regulated activity. Incorporated in 2009, its principal activity is to provide asset management services to corporations, institutions and individual investors. CDHK provides discretionary investment management service and the first client was onboarded in October 2015. CDHK manages the i Capital China Fund, a retail unit trust fund authorized by the SFC, and the i Capital Global Fund, an open-end fund operating under the purview of the Cayman Islands Monetary Authority.
Sydney-based fund manager investing globally. It forms a crucial part of 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).
Our Brand 3
“i ”s
We believe that successful investing involves the 3 ‘i ’s
- Independence, Intelligence and Integrity.
01
Independence
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.
02
Intelligence
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.
03
Integrity
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.
Customers’
Yachts
Our managing director, Teng Boo, has always been fascinated with the stock market, having been a “student” of the market for more than 40 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:
1
“An out-of-town visitor was shown the wonders of the New York financial district.
2
When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor.
3
He said, “Look, those are the bankers’ and then brokers’ yachts.”
4
The naïve visitor asked, “Where are the Customer’s 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.