Investment Approach

Our Core Investment Criteria - R.I.S.E.

R.I.S.E. – Our Core Investment Criteria

R.I.S.E. is our in-house core investment criteria model for initially assessing whether we partner with, invest into, cooperate or even associate with a prospective company or individual. We apply it to everything, from the people we choose to hire to the companies that we invest into, and even, to the ones we buy from, too. We believe that R.I.S.E. is the solution to making above-average returns over a long-term time horizon, which is our principal investment goal.

1

Risk

How fast it can grow?

2

Impact

How will it change people’s lives?

3

Sustainability
Is it designed to adapt?

4

Ethics

Is the result beneficial for us?

Investment Management Goals

DMH&CO’s primary investment focus is to enhance the returns and reputation of Daniel Mark Harrison and his family. DMH&CO is invested in a variety of asset classes, although our biggest investments to date fall under one of three categories: property, technology and media. The majority of assets that DMH&CO owns are private-market and venture capital-stage, with just a small number of public listed holdings comprising our portfolio. We are currently exploring the prospect of making investments in brokers and financial services companies, particularly in fast-growing areas of the world such as China, South East Asia and Latin America.

R.I.S.E.

An Organically-Leveraged Blue-Ocean Investment Strategy

1. Risk

A key component of any investment is how fast it can grow in what time frame, and how this matches up to comparable investments. The growth prospects of an investment or partnership agreement alone however are never enough to justify time and money being spent on it. An investment proposal must always present a better risk-adjusted return than comparable offerings in order to be appealing and attract capital and to justify the work that will go into making it succeed. Too often people assume this means that an investment must be de-risked, however, and they end up removing a lot of the return potential trying to protect the downside. We don’t like those kinds of investments either, for high-quality risk-adjusted return should inherently involve the investment covering much of its own downside over time anyway without the requirement for artificial hedges. Risk is a many-fold variable too, not just a quantitative measurement. We like to weigh risk from all the angles, from the audited or forecast accounts right down to the soft stuff such as the personalities of those involved and their families.

 

2. Impact

What will this product do for the world? How will it change people’s lives? To what extent will this service help the target consumer, and how many of those consumers are out there now waiting for it to be offered to them? How big can this thing really get? Could this partnership make us see something we are not seeing from a completely different vantage point? These are the kinds of questions we ask ourselves before we make any investment or enter into any agreements. We want to be involved in the biggest ideas of the next century, even if it means waiting a bit longer than average to see the results. Our goal is to put money to work so that the benefits of it are felt by the many, not just a few for the simple reason that is where the strength in profit margins lies. Money should be life-changing, after all, and we like to think that when we commit it, we are changing lives – and maybe, life, too!

 

3. Sustainability

Adaption and flexibility by design are the attributes of every sustainable innovation, including financial products. We are long term investors, and we don’t set specific time horizons or have any blanket requirements for exit strategies. After all, being able to invest into or work with a project, a company or a person for indefinite periods of time is one of our core competitive value advantages. As a family office we can make investments and give extensive amounts of time commitments to projects and objectives without having to justify our actions to third party investors or lenders. In order to commit capital over these indefinite periods however, what we commit it to must be sustainable beyond an immediate growth curve. Too often, the most exciting prospects are great for a period of up until 12 months away, but there’s no plan or vision in place to creative real value beyond that point. We want longevity.

 

4. Ethics

How ethical an investment is, and how likely it is to positively or negatively affect the environment that it is being directed at, and the environment in general, is always our number one criteria for assessing an investment. In our experience, far too often, people overlook this in the pursuit of quick profit. If the profit harms someone however, it is unlikely to have great risk-adjusted return, crate a wide-spread impact or be sustainable, making it effectively a money-loser over the long term anyway. But there is more to it than this – ultimately, we want to make investments that better people’s lives and contribute towards gross production, not just make money at someone else’s expense. As a result, we only ever consider investing in ideas and companies that fit our rigorous ethical guidelines. This extends not just to the industries we will consider investing in, but a company’s management, supplier and even customer relationships, since all these things usually point to the type of culture that is living and breathing inside an organization.