DYNAMO V.C.

About Us

Dynamo VC Administradora de Recursos Ltda. started its operations in 1999, with the objective of investing in private equity investment funds. Dynamo currently also acts in the management of a private real-estate investment fund.

Dynamo has adopted, from the beginning, a fundamental analysis approach that seeks consistent medium and long term results. Structured as a partnership and with practically the same team since inception, Dynamo combines the experience from many years of operation with the enthusiasm of our starting years.

At Dynamo, the expansion of our assets under mangement and the performance of our funds give us confidence in our investment philosophy and managerial discipline.

Structure

Dynamo is a partnership, where all partners are involved in our only activity, and that is managing the funds.

All of our back office activity (custody, settlement, NAV calculations, cash management and accounting) is outsourced. Besides that, the majority of the partners' wealth is invested in Dynamo administered funds. We do not have an investment approach that differs from the one that is offered to our clients.

Profile

Dynamo possesses some fundamental characteristics that make it unique among asset managers:

  • Independence
    Independent asset manager.
  • Focus
    Dynamo's only activities are the management of real-estate investment funds, management and fiduciary administration of private equity investment funds, where the latter activity is developed exclusively for funds under its own management. Our success depends, exclusively, on the performance of this activity.
  • Value Investor
    The main investment criterion is to establish the intrinsic value of a business, based on a fundamental analysis method. A medium/long time frame is employed, taking into account the preservation of our investor’s capital.
  • Commitment
    A relevant portion of the partners' wealth is invested in funds managed by Dynamo.
  • Reputation
    Decisions are based on high ethical standards and seek to maintain our pristine reputation.
  • Transparency
    Consistent and well defined investment strategy and management criteria since inception. Reliable communication channel that is permanently open to our investors.
  • Track Record
    Since inception, consistent results without undergoing unnecessary or excessive risks.

Investment Strategy

The following elements form the main aspects that guide our investment strategy:

  • Fundamental investment method. We only invest in businesses that we think we can understand. We are not market timers. We do not intend to guess the market’s psychology. We do not make use of derivatives that leverage the funds.
  • Concern with the preservation of our investor’s capital.
  • Investments are directed to quality companies, with ethical and competent management, profitable activities, growth potential and a corporate philosophy that seeks value creation for shareholders.
  • Present investors, pro actively collaborating with companies in order to add value to their businesses. Active partner attitude, not a passive minority shareholder.
  • Construction of a solid relationship with company executives.
  • Objective: To generate annual real returns above 10%.

Our investment routine comprises two main tasks:

i  - Selecting the investments, by identifying intrinsic value, through a wide and detailed research;

ii - Monitoring the investments, where we seek to follow the businesses and suggest corporate actions that will maximize the value that was previously identified.

Since inception, a Dynamo has developed a capacity of researching and monitoring businesses that transcends the orthodox definitions used in investment banks and brokerage firms. We believe that a continuous and thorough analysis of a company (and of its particular sector) is the only way to accurately understand its present and future values.

In that sense, we don’t pretend to be able to predict short term movements of the Brazilian stock market, nor do we ever invest in businesses that we cannot understand enough of its fundamentals. We base our investment decisions on analysis and we use knowledge as the best tool for risk assessment.

Having identified the fundamental value and after becoming a shareholder, Dynamo will work close to the company in order to maximize its value to the benefit of all shareholders.

As active shareholders, we will suggest, to the companies that we are invested in, corporate decisions that will maximize value creation and liquidity to all shareholders. In the majority of cases, the controlling shareholder’s interests are in tune with this objective, which enables Dynamo's  posture to be collaborative and cordial. However, in some infrequent situations, we may be compelled to use resources, even legal action, to enforce our rights and convictions.

Documents

Formulário de Referência

Manual de Ética e Compliance

Política de Investimento Pessoal

Política de Investimento de Carteiras Próprias

Política de Gerenciamento de Riscos

Política de Alocação de Ativos