Risks

Past performance is no guarantee of future results.  D2 Capital Management, LLC does not promise, represent, guarantee, or warrant that any particular outcome will occur.  The information contained in this website does not constitute a solicitation or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

Investing in securities always involves the risk of loss that investors should understand and be prepared to bear.  D2 does not represent, warrant, or imply that the services or methods of analysis employed by the firm can or will predict future results, successfully identify market tops or bottoms, or insulate clients from losses due to investment decisions or market corrections/declines.

In addition to the risks discussed above, clients should be aware of the following risks that apply to the strategies and analysis employed by D2:

Fundamental Analysis

Fundamental analysis does not attempt to anticipate market movements.  This presents a potential risk, as the price of a security can move up or down along with the overall market regardless of the economic and financial factors considered in evaluating a security.

Equity Market Risk

Overall stock market risks may affect the value of the investments in equity strategies.  Factors such as U.S. economic growth and market conditions, interest rates, and political events affect the equity markets.

Management Risk

Our judgments about the attractiveness, value and potential appreciation of a particular asset class or individual security may be incorrect and there is no guarantee that individual securities will perform as anticipated.  The value of an individual security can be more volatile than the market as a whole or our intrinsic value approach may fail to produce the intended results.  Our estimates of intrinsic value may be wrong or even if our estimates are correct, it may take a long period of time before the price and intrinsic value converge.

Small and Mid Cap Company Risk

Investments in small and mid cap companies may be riskier than investments in larger, more established companies.  The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies.  In addition, small and mid cap companies may be more vulnerable to economic, market and industry changes.  Because smaller companies may have limited product lines, markets or financial resources, or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than larger capitalization companies.

Fixed Income Risk

Fixed income securities increase or decrease in value based on changes in interest rates.  If rates increase, the value of fixed income securities generally declines.  On the other hand, if rates fall, the value of the fixed income securities generally increases.

Credit Risk

There is a risk that issuers and counterparties will not make payments on the securities they issue.  In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes.  Lower credit quality may lead to greater volatility in the price of a security which may affect liquidity and our ability to sell the security.

Options

We may use options as an investment strategy. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset (such as a share of stock) at a specific price on or before a certain date. An option, just like a stock or bond, is a security. An option is also a derivative, because it derives its value from an underlying asset.

The two types of options are calls and puts:

A call gives the holder the right to buy an asset at a certain price within a specific period of time.

A put gives the holder the right to sell an asset at a certain price within a specific period of time.

We may use options to generate income by selling an option contract and receiving an option premiums. We may also use options to speculate on the possibility of a sharp price swing. We may also use options to “hedge” a purchase of the underlying security; in other words, we may use an option purchase to limit the potential upside and downside of a security we have purchased for your portfolio.

General Legal Disclosure Information

D2 Capital Management LLC, is a registered investment advisor in the following states: FL. This web site is published in the United States for residents of the United States.

D2′s representatives may only conduct business with residents of the States and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Investors outside the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Products and services mentioned in this web site may not be available in all states. To request information, contact D2 via the Contact Us page. D2 Capital Management, LLC is not soliciting business in any state or international jurisdictions where it is not registered. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice.

Neither D2 nor its representatives are engaged in rendering legal, accounting or tax advice. If legal, accounting or tax assistance is required, the services of a competent professional should be sought. The hiring of a professional is an important decision and should not be based upon advertising. Ask for written information stating qualifications, experience and firm association before making a decision.

Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. The third-party is responsible for the content and availability of its sites, partners or advertisers. D2 receives compensation for any purchases made at Amazon.com as a result of the links on this site.

The information provided on this site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject D2 Capital Management, LLC or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this site constitutes a solicitation or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

Disclaimer of Warranty and Limitation of Liability

The information on this site is provided “AS IS.” D2 Capital Management, LLC does not warrant the accuracy of the materials provided herein, either expressed or implied, for any particular purpose and expressly disclaims any warranties of merchantability or fitness for a particular purpose. D2 Capital Management, LLC will not be responsible for any loss or damage that could result from interception by third parties of any information made available to you via this site.

Should the viewer leave this site via a link contained herein, and view content that is not provided by D2 Capital Management, LLC, the viewer does so at its own risk. The content to which you link will not have been developed, checked for accuracy or otherwise reviewed by D2 Capital Management, LLC. D2 Capital Management, LLC is not responsible for damages or losses caused by any delays, defects or omissions that may exist in the services, information or other content provided in such site, whether actual, alleged, consequential or punitive. D2 Capital Management, LLC makes no guarantees or representations as to, and shall have no liability for, any electronic content delivered by any third party, including, without limitation, the accuracy, subject matter, quality or timeliness of any electronic content.