D1 Capital Partners is an investment management firm with more than $12.9 billion in assets under management (AUM). It currently manages a total of 12 pooled investment vehicles, three of which are private equity funds and one of which is a hedge fund. The firm currently employs 22 advisors.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
D1 Capital Partners Background
D1 Capital Partners was founded in July 2018 by Daniel Sundheim, who is principal owner and controls the firm. Sundheim is a graduate of Wharton and was formerly CIO of Viking Global Investors. According to Business Insider, Sundheim started trading in D1 with more than $5 billion, of which more than $500 million was his own money.
The firm's headquarters are in New York City. Its clients consist solely of pooled investment vehicles, which the firm refers to as its Funds and Co-Investment Vehicles. The firm invests on behalf of investors around the globe, including endowments and foundations, family offices, sovereign wealth funds, outsourced CIOs, hospitals and pensions.
D1 Capital Partners Investment Philosophy
D1 Capital Partners implements a global equity long-short strategy. Long-short approaches aim to create a balanced portfolio that takes advantage of both rises and falls in the market.
The firm focuses its research primarily on the following sectors: TMT (technology, media, telecom), industrials, healthcare, consumer, real estate and financial services sectors.
Geographically, its investments are primarily in North America, Western Europe, Japan and China. However, there are no sector or geographic limitations on its investments and the firm may invest in other sectors and geographic areas that it finds valuable over time.
In terms of public investments, D1 Capital Partners also invests in publicly traded equities, equity and credit derivatives, other fixed-income instruments and other financial instruments permitted under clients' governing documents.
With regards to private investments, the firm generally focuses on investments that it believes are likely to offer liquidity within five years, but it may make investments with shorter or longer time horizons.
Largest Hedge Funds Managed by D1 Capital Partners
D1 Capital Partners Master LP
- AUM: $12,257,014,811
- Minimum: $2 million
- Beneficial Owners: 438
Fees at D1 Capital Partners
Fees are charged by the firm to the Funds, not to the clients directly. This generally includes a managment fee that ranges from 1% to 2% per year. Management fees at the firm are generally based on a percentage of the net value of assets under management of each class of shares that an investor holds. Additionally, at the end of each fiscal year of the Funds, the Fund General Partner is entitled to an incentive allocation that is figured separately for each capital account that is established for an investor.
For D1 Capital Partners Co-Investment Vehicles, all fees are subject to negotiation and established in the Co-Investment Vehicles governing documents.
The firm and its affiliates do accept a performance-based fee from every client, based on net capital appreciation, or net increase in value of assets. Beyond this, other additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential clients reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors, who, along with sophisticated investors, are allowed by the SEC to buy securities like these. These two groups of investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
Within the past 10 years, D1 Capital Partners has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of D1 Capital Partners
If you are an accredited investor and wish to become a client of D1 Capital Partners, you can call (212) 390-9100. The firm does not currently have a website.
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