THOUGHTFUL INVESTING FOR LONG-TERM GROWTH
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What are Uncorrelated Investments?
It goes far deeper than simple diversification – It is the degree to which two investments move in relation to each other.
Example 1
Consider an investor with real estate in California and Industrial real estate in New York. Yes, they are different because one is residential and the other is industrial, and yes, they are in different states, but they have some correlation, both being in real estate and in the same country. If all real estate in the United States has a bad few years, that portfolio could be negatively affected.
Example 2
Consider residential real estate in California and a professional sports team in Tampa Bay. If real estate goes down, this has close to no effect on the investment in Tampa. These asset classes have historically shown lower correlation to one another, though past relationships are not guarantees of future performance.
What are the potential benefits of diversification?
Spreading investments across a range of asset classes is a widely recognized risk management approach. While diversification does not eliminate risk or guarantee against loss, it is designed to help manage the impact of any single underperforming investment on the overall portfolio.
The Five Talent Capital Investing Strategy
The fund seeks to invest across 15 to 20 uncorrelated asset categories. Within each category, for example, real estate, we intend to also employ diversification by having multiple, unique investments.
To properly execute this strategy requires great discipline. We do not intend to deploy 80 to 90% of our capital into real estate opportunities, then the remaining 10 to 20% across all other investments; instead, our goal is to distribute the investment dollars evenly over the 15 to 20 categories. We have set a target maximum of 10% of our total investment into any given category, and we would only approach that target if the risk is heavily mitigated.
Virtues
Integrity first and always - this is non-negotiable. We will do what we say we will do.
Be humble and grateful - we don't “deserve” and we are not “owed.”
Be creative and entrepreneurial - it’s who we are to our core.
Act and invest in alignment with who we are meant to be.
Vet opportunities frugally, Invest with an abundance mindset.
What we do daily isn't building an enticing resume, it’s building a powerful eulogy.
The Founder
I serve one God, and it isn't money. He has called me to this path and He is the reason for any good you see in my life. I’m obsessed with my wife of over 21 years. I have two teenage daughters that are the most amazing, emotionally intelligent, balanced teenage girls I have ever met! I was created to serve my fellow man and I live in alignment and integrity every day.
If you’d like to know more than that, you can read what the suits wrote about me below.
─ Markus Kaulius
Markus is a serial entrepreneur and impact-driven investor who’s built multiple 8- and 9-figure companies, including one that scaled from $0 to $170M in global sales.
With his success in investing and his dedication to integrity, philanthropy and his faith, Markus has been featured on nearly every network and publication, including Forbes, USA Today, CNN, PBS, and Fox News.
He’s a USA Today top 10 best-selling author who makes real impact, holds ownership in 40+ companies (including pro sports teams), and speaks on stages all over the world.
With his latest venture, Five Talent Capital, Markus now invites others to see what happens behind the financial curtain and benefit from his relationships and opportunities while on mission to pull one million children out of the sex trade.
Investment
Philoshophy
1 | Diversify. The greater your mix of uncorrelated investments, the lower the potential risk, which may help manage portfolio volatility across varying market conditions. Diversification does not assure a profit or protect against loss.
2 | Only invest in opportunities that you fully understand and are in full alignment with who you are.
3 | Only invest with people you trust. Conduct thorough due diligence on any investment manager or opportunity.
Final Encouragements
I want to express my sincere gratitude for considering partnering with us. I know well how hard it can be to decide how to invest and who to trust. For years I found myself playing small, thinking small and being surrounded by people with that same small mindset.
Step one for me to get through that was to recognize I was playing small and surrounding myself with the wrong people. I knew in my gut these weren't the people to take advice from or to trust.
If you are anything like me, the idea of trusting anyone can be a complex request. I truly sympathize.
I would encourage you to do some research on who I am. Look deep into my history, listen to the messages I started putting out ten, fifteen, twenty-five years ago. I believe you will notice that my message hasn't changed (other than hopefully evolving into sounding like a man with a little more wisdom)! My message has always been integrity first.
Integrity to me means doing as I say I will do 100% of the time. There is no 99% integrity. For me to be a man of integrity I must do extensive research ahead of time and know what is coming before I invite others on the journey with me or make any promises.
For me to be in full integrity and be in alignment with who I was designed to be, I must serve my fellow man at a high level. I must share what learning I have received and I must share with love and patience.
If you feel aligned with who I am and what I stand for, I would love the chance to have a conversation with you and serve you in some capacity.
─ Markus Kaulius
Partners
Admin Partner
Founded in 1978, Trident Trust is a leading independent provider of fund, corporate and fiduciary services to the financial services sector worldwide. People-led and technology-enabled, we support their clients with first-class service in more than 30 jurisdictions.
Our global fund services team, across 12 fund domiciles and with a total AUA of $65Bn, provides specialist industry expertise and cutting-edge technology, combined with personal service and a commitment to long-term relationships. Over 700 alternative asset funds worldwide, ranging from multi-billion-dollar funds to next generation managers, trust us to support their business, because every single one of our clients receives the utmost commitment and dedication from our people.
Over the last decade, Trident Trust has won 25 awards for our fund services, including 10 Fund Administrator of the Year awards. Year after year, we are consistently ranked as a Global Outperformer in Global Custodian magazine's respected Hedge Fund and Private Equity surveys.
Accounting and Auditing Partner
Richey May is a nationally recognized accounting and advisory firm with over four decades of experience serving the alternative investments industry. Specializing in hedge funds, private equity, venture capital, real estate funds, and digital asset funds, the firm combines the deep expertise of a national firm with the personalized service of a boutique provider. Richey May has been consistently ranked among the top auditors of hedge funds by Hedge Fund Alert since 2017 and is a Top 50 Firm.
To learn more about their alternative investments practice, visit RicheyMay.com/Industries/Alternative-Investments/.
Legal Partner
Sigma Law Group LLC is a corporate, intellectual property, and entertainment law firm founded by former BigLaw attorneys with deep roots in top AM Law ranked firms. The founding team brings decades of combined experience from nationally recognized firms, where they honed their craft advising on the most complex and high-stakes matters in technology, venture capital, and entertainment law.
The foregoing statements herein may constitute forward-looking statements, which involve known and unknown risks and uncertainties. Actual results may differ materially, and any past performance is for informational purposes only, not an indicator of future results.
This website does not constitute an offer of securities. Investments, if offered, will be available only to accredited investors and qualified purchasers, as applicable, and subject to the terms of definitive offering documents, and any associated verification procedures.
Five Talent Capital Management does not provide investment advice through this website. Any third party service providers referenced on this website do not sponsor, endorse, or guarantee any investment strategy or offering.