Today's Investment Challenge

Better Investments Criteria

High Returns

Compelling investments should produce 10%+ annualized returns over complete market cycles. This is a difficult threshold to clear. But true wealth creation requires substantial compounding. Double-digit returns make compounding come to life.

Limited Downside Risk

Investments occasionally decline in value. Better investments should limit these losses to 25% or less, with durations of less than four years. Deeper and longer price declines produce investor pain and may lead to poor investment decisions.

Low Correlation

Low correlation investments produce returns with minimal relationship to other investments. This diversification can lead to a smoother ride and higher returns for investors. Attractive investments should have monthly correlations to the US stock market of 0.5 or less over market cycles.

Tax Efficiency

High pre-tax returns are critical, but investors know that after-tax returns are what matter most. For this reason, appealing investments should consider tax implications and reduce tax burdens through tax-efficient execution.

Traditional Investments Come Up Short

Traditional investment categories have some characteristics of compelling investments, but none meet all four criteria. Most investors have too much allocated to these categories.

Building Better Investments

At Dixon Midland, we seek to build better investments for today’s investors. We’re an asset management firm focused on delivering above-market returns with below-market risk and low correlation to other investments. We seek to deliver these results through a long-short equity strategy based on timeless investment principles and careful craftsmanship. Our investment strategy seeks to: