
DCI has combined forces with Blackstone Credit
- Model-driven approach; proprietary fundamental credit model
- Targets sustainable, repeatable, uncorrelated alpha
- Designed to be defensive in high volatility regimes
- Can be highly additive to investor portfolios
Systematic Approach, Fundamental Credit Model

- Pure alpha
- Aim is uncorrelated excess returns
- Not factor investing
- Targets uncorrelated returns to indexes and factors
- Not harvesting a liquidity premium
- Focus is on the most liquid issuers
- No extra beta
- Betas matched to benchmark; no out of index exposures
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Pure alpha | Aim is uncorrelated excess returns | |
Not factor investing | Targets uncorrelated returns to indexes and factors | |
Not harvesting a liquidity premium | Focus is on the most liquid issuers | |
No extra beta | Betas matched to benchmark; no out of index exposures | |
A Long History of Innovation
Strategies
Asset Class | Strategy |
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Core Fixed Income |
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Investment Grade Corporate |
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Long-Duration Corporate |
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High Yield Corporate |
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Emerging Market Corporate |
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Absolute Return Credit |
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Short Credit |
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Fund Formats |
Liquid daily dealing commingled funds (including regulated UCITS V compliant; tax efficient for U.S. taxable and tax-exempt investors), managed accounts and fund-of-one vehicles. |
About DCI
DCI is an independent asset management firm specializing in investment grade and high yield corporate credit strategies. The firm manages long-only and long/short strategies for some of the world's largest institutional and private wealth investors. DCI deploys a fundamental based, systematic approach seeking to exploit potential inefficiencies in the corporate credit markets. The firm offers daily dealing funds including regulated UCITS V compliant funds, offshore funds, onshore funds, and custom managed accounts.
The cofounders' achievements include the creation of the world's first equity index fund at Wells Fargo in 1971, cofounding Dimensional Fund Advisors in 1981 and cofounding KMV in 1989. While at KMV between 1989 and 2002, a group of DCI's founders and principals developed the world's first credit default probability model. This model was empirically shown to predict corporate defaults with more precision and accuracy than any previous methods. After Moody's acquired KMV, the team co-founded DCI in 2004 with the singular objective of creating well-diversified portfolios that seek to produce consistent, low-volatility alpha.
The firm is headquartered in San Francisco, California and is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC)*.
*Registration with the SEC does not imply any level of skill or training.
(CRD number: 134018; SEC file number: 801-63857)
News and Resources
Blackstone Announces Agreement to Acquire DCI
New York, November 30, 2020 – Blackstone (NYSE:BX) today announced that it has agreed to acquire DCI, a pioneer in quantitative credit investing with approximately $7.5 billion in AUM across the global investment grade, high yield and emerging corporate credit markets. The firm, based in San Francisco, applies a proprietary, fundamental-based, technology-driven model to deliver differentiated returns to clients. DCI is led by a team of seasoned professionals who are recognized experts in quantitative and systematic fixed income research.
CreditFlux - Managers Opting for Market Neutral
CreditFlux published an article highlighting DCI as they point out that managers are choosing Market Neutral strategies in a time of uncertainty.
Opalesque names DCI an "asset manager who delivered during the meltdown"
Opalesque named DCI an "asset manager who delivered during the meltdown" in their Corona Fighters Report. They specifically reference DCI's Market Neutral Credit strategy.
Download the full article here.
Corporate Credit – Market Neutral Best Performing Fund in 2019
DCI was awarded the Hedge Fund Journal's "Corporate Credit - Market Neutral, Best Performing Fund in 2019 and over 2, 3, 4, 5, and 7 Year Periods" for the DCI Market Neutral Credit Fund (UCITS). This is the 4th consecutive year DCI has been presented with this award.
DCI Featured at Litman Gregory Conference
DCI was pleased to present at Litman Gregory’s annual conference in San Francisco on Nov 14, 2019.
DCI Featured in The Hedge Fund Journal
DCI was featured in the recent issue of the Hedge Fund Journal. The article covers our history, performance, and future thoughts, specifically focusing on Market Neutral UCITS and AIF.
You can read the full article on their website, or download the PDF version.
Corporate Credit – Market Neutral Best Performing Fund in 2018
DCI was awarded the Hedge Fund Journal's "Corporate Credit - Market Neutral, Best Performing Fund over 2, 3, 4, and 5 Year Periods" for the DCI Market Neutral Credit Fund (UCITS).
Corporate Credit – Market Neutral Best Performing Fund in 2017
DCI was awarded the Hedge Fund Journal's "Corporate Credit - Market Neutral, Best Performing Fund in 2017 and over 2 and 3 Year Periods" for the DCI Market Neutral Credit Fund (UCITS).
John "Mac" McQuown receives Innovation Award
Mac McQuown, Co-Founder and Director of DCI, was honored with the CME Group's Melamed-Arditti Innovation Award. He received the award, along with Jack Bogle, as recognition for revolutionizing investment strategy by pioneering index funds in the 1970s. Together, Mac and Jack developed a new a form of passive portfolio management which today account for nearly 30 percent of all U.S. investments.
Corporate Credit – Market Neutral Best Performing Fund in 2016
DCI was awarded the Hedge Fund Journal's "Corporate Credit - Market Neutral, Best Performing Fund in 2016" for the DCI Market Neutral Credit Fund (UCITS).
Bloomberg Markets Magazine Profiles Mac McQuown
Mac McQuown, Co-Founder and Director of DCI, has been featured in an article by Bloomberg Markets.
Meet the 80-Year-Old Whiz Kid Reinventing the Corporate Bond
Exploiting Mispricings In Credit Markets - Interview with Stephen Kealhofer
Stephen Kealofer, Head of Research and Co-Founder of DCI, was interviewed for "The Hedge Fund Journal".
“People still ask us, ‘why are you so diversified? Why can’t you just pick the winners?’” Kealhofer says. “Well, we think we can pick the winners, but by taking a lot of small bets over time we ensure that no one name can take down the portfolio. And because we’re market neutral, we ensure that our portfolios are never driven by the direction of the market – that is something that we are very rigorous about.”
DCI Leadership

- Stephen Kealhofer
Head of Research, Co-Founder and Director
Stephen co-founded and served as managing partner of KMV, the leading credit analytics firm, which was acquired by Moody’s in 2002. Prior to founding KMV in 1989, Stephen was Director of Research for Diversified Corporate Loans, LLC. Stephen served as visiting Assistant Professor at the Haas School of Business from 1985–87 and Assistant Professor at the Graduate School of Business, Columbia University, 1981–85.

Head of Research, Co-Founder and Director
Stephen co-founded and served as managing partner of KMV, the leading credit analytics firm, which was acquired by Moody’s in 2002. Prior to founding KMV in 1989, Stephen was Director of Research for Diversified Corporate Loans, LLC. Stephen served as visiting Assistant Professor at the Haas School of Business from 1985–87 and Assistant Professor at the Graduate School of Business, Columbia University, 1981–85.

- Tim Kasta
CEO and Director
As CEO, Tim is responsible for the firm's overall activities. Previously Tim was President of DCI, responsible for the firm’s client facing activities including investor advisory, marketing, and distribution. Tim is a member of DCI's investment committee and board of directors and continues to be heavily involved with the firm's product development efforts. Tim has been with DCI since its inception in 2004. Prior to DCI, Tim was Partner and Managing Director of KMV where he held a variety of roles since joining the firm in 1996, including designing and leading the development and marketing of the firm's flagship web product – CreditEdge. After the sale of KMV to Moody’s, the credit rating agency, in 2002, Tim became Managing Director of Moody’s KMV, co-head of sales, and responsible for product development and marketing for the asset management sector. Tim began his career in 1993 at Bank of Montreal in Toronto where he was one of the original members of the credit portfolio management team within corporate banking. Tim is a CFA charter holder and received his Bachelor of Arts (HBA) from the Ivey Business School at Western University located in London, Ontario, Canada.

CEO and Director
As CEO, Tim is responsible for the firm's overall activities. Previously Tim was President of DCI, responsible for the firm’s client facing activities including investor advisory, marketing, and distribution. Tim is a member of DCI's investment committee and board of directors and continues to be heavily involved with the firm's product development efforts. Tim has been with DCI since its inception in 2004. Prior to DCI, Tim was Partner and Managing Director of KMV where he held a variety of roles since joining the firm in 1996, including designing and leading the development and marketing of the firm's flagship web product – CreditEdge. After the sale of KMV to Moody’s, the credit rating agency, in 2002, Tim became Managing Director of Moody’s KMV, co-head of sales, and responsible for product development and marketing for the asset management sector. Tim began his career in 1993 at Bank of Montreal in Toronto where he was one of the original members of the credit portfolio management team within corporate banking. Tim is a CFA charter holder and received his Bachelor of Arts (HBA) from the Ivey Business School at Western University located in London, Ontario, Canada.

- Richard Donick
President, Chief Risk Officer and Director
Before joining DCI in 2004, Richard was with the Financial Restructuring group of HLHZ, which he joined in 2002. Prior to joining HLHZ, Richard was with UBS AG, where he built and managed the firm’s European FX derivatives business. In 1999, he oversaw the reorganization of UBS’s global securities financing businesses and was made responsible for UBS Warburg’s strategic alliances and investments. In 2001, he served as COO of UBS Capital, UBS’s private equity division. Before joining UBS in 1993, Richard practiced law in the Washington, DC, office of Johnson & Gibbs, PC.

President, Chief Risk Officer and Director
Before joining DCI in 2004, Richard was with the Financial Restructuring group of HLHZ, which he joined in 2002. Prior to joining HLHZ, Richard was with UBS AG, where he built and managed the firm’s European FX derivatives business. In 1999, he oversaw the reorganization of UBS’s global securities financing businesses and was made responsible for UBS Warburg’s strategic alliances and investments. In 2001, he served as COO of UBS Capital, UBS’s private equity division. Before joining UBS in 1993, Richard practiced law in the Washington, DC, office of Johnson & Gibbs, PC.

- Paul Harrison
Chief Investment Officer
Prior to joining DCI in 2016, Paul was a Managing Director at BlackRock, Inc. (formerly BGI) where he served as the Chief Investment Officer and Head of Research for the firm’s systematic Global Macro team and held a variety of firm-wide leadership roles. Paul directly led a 30-person team researching and implementing systematic strategies and funds catering to top-tier institutional clients, including managing very large investment portfolios and building scalable and robust investment processes. Paul also headed up the firm’s Multi-Asset Global Asset Allocation business, responsible for over $30 billion of AUM. He has extensive experience in Fixed Income and has built and managed investment strategies focused on both credit and government bond markets. Before BlackRock/BGI, Paul ran the Capital Markets research team at the Board of Governors of the Federal Reserve System and was responsible for leading the analysis and communication of market and financial conditions to the Board. He began his career as an academic, having served on the faculty at Brandeis University and publishing in academic journals.

Chief Investment Officer
Prior to joining DCI in 2016, Paul was a Managing Director at BlackRock, Inc. (formerly BGI) where he served as the Chief Investment Officer and Head of Research for the firm’s systematic Global Macro team and held a variety of firm-wide leadership roles. Paul directly led a 30-person team researching and implementing systematic strategies and funds catering to top-tier institutional clients, including managing very large investment portfolios and building scalable and robust investment processes. Paul also headed up the firm’s Multi-Asset Global Asset Allocation business, responsible for over $30 billion of AUM. He has extensive experience in Fixed Income and has built and managed investment strategies focused on both credit and government bond markets. Before BlackRock/BGI, Paul ran the Capital Markets research team at the Board of Governors of the Federal Reserve System and was responsible for leading the analysis and communication of market and financial conditions to the Board. He began his career as an academic, having served on the faculty at Brandeis University and publishing in academic journals.

- Adam Dwinells
Head of Portfolio Management
Adam has been with DCI since 2005 — he has experience in a variety of capacities including client service, performance analysis, and project management. Adam leads the team responsible for day-to-day management of DCI’s credit portfolios with a particular focus on cash corporate bond trading. Prior to joining DCI, Adam spent six years at JP Morgan and predecessor companies as a vice president and senior risk advisor in various risk management and audit capacities—with responsibility for credit and rate markets, and corporate treasury business coverage.

Head of Portfolio Management
Adam has been with DCI since 2005 — he has experience in a variety of capacities including client service, performance analysis, and project management. Adam leads the team responsible for day-to-day management of DCI’s credit portfolios with a particular focus on cash corporate bond trading. Prior to joining DCI, Adam spent six years at JP Morgan and predecessor companies as a vice president and senior risk advisor in various risk management and audit capacities—with responsibility for credit and rate markets, and corporate treasury business coverage.

- Jon Bailey
Chief Compliance Officer & Head of Operations
Prior to joining DCI, Jon was the Head of Multi-Asset and Alternatives Portfolio Analytics at BlackRock in San Francisco from 2009 to 2014. From 2006 to 2009, Jon was the Head of Asset Management Operations at Countrywide Alternative Investments in Calabasas, CA. Prior to this time, Jon worked for RBC Capital Markets New York in various roles including as an attorney and as a derivatives middle office manager. Jon holds a J.D. from Brooklyn Law School, a B.A. in English from the University of Delaware and the Chartered Alternative Investment Analyst® designation.

Chief Compliance Officer & Head of Operations
Prior to joining DCI, Jon was the Head of Multi-Asset and Alternatives Portfolio Analytics at BlackRock in San Francisco from 2009 to 2014. From 2006 to 2009, Jon was the Head of Asset Management Operations at Countrywide Alternative Investments in Calabasas, CA. Prior to this time, Jon worked for RBC Capital Markets New York in various roles including as an attorney and as a derivatives middle office manager. Jon holds a J.D. from Brooklyn Law School, a B.A. in English from the University of Delaware and the Chartered Alternative Investment Analyst® designation.
Board and Advisors
David Solo
Co-Founder and Chairman of the Board, DCI. Formerly Chief Executive Officer, GAM
Mac McQuown
Co-Founder and Director, DCI. Formerly Co-Founder and Chairman, KMV; Co-Founder and CEO, Diversified Corporate Loans; Co-Founder and Director, Dimensional Fund Advisors
Lew Coleman
Director, DCI. Formerly Vice Chairman, President & Chief Financial Officer, DreamWorks Animation; Chief Financial Officer, Bank of America
Jack Wadsworth
Director, DCI. Partner, Manitou Ventures; Honorary Chairman, Morgan Stanley Asia
Ian Drew
Chairman of Funds Board, DCI. Formerly Chief Credit Officer, UBS Warburg; Board member, UBS Investment Bank
Paul Collins
Advisor, DCI. Formerly Vice Chairman, Citibank
David Coulter
Advisor, DCI. Partner, Warburg Pincus Private Equity. Formerly Vice Chairman, JP Morgan; Chairman, CEO of Bank of America
Dick Fredericks
Advisor, DCI. Founder, Managing Director, Main Management. Formerly Partner, Montgomery Securities; U.S. Ambassador to Switzerland
Contact


- San Francisco
- info@dci.com
- +1 415 764 1901
- 201 Spear Street Suite 250
- San Francisco, CA 94105