The DTM5 was developed as a ‘strategy’ that I could use in different investment entities.

But, not all entities share the exact same risk tolerance or need for liquidity. For example, a portfolio held in a holding company or on a corporations balance sheet may have high long term growth as the primary objective, but may want to tamp down the ultra high risk of holding thinly traded micro caps or direct investments in start-ups or unproven technologies. A retirement strategy may have similar concerns. What to do?

I’ve been watching with interest over the past few months as successive companies are adding investments in Crypto currencies – specifically bitcoin – to their balance sheets, replacing other investments. Seems crazy, doesn’t it?

I also note with interest companies such as Galaxy Digital (A DTM5 Holding) acting as a merchant bank, using their balance sheet to make direct investments in private companies and Crytpo Currencies.

Lets have a deeper look. Companies are interested in using the excess liquidity on their balance sheet in a productive way. Some may distribute excess capital to shareholders. Some may invest in other businesses. Some may buy back their own shares. And some make investments. Basically use the cash in a way that can exceed the rate of return generated by the operating business.

Some companies are more comfortable with risk than others. An owner operated / entrepreneurial company will have more flexibility to execute an aggressive or alternative investment strategy than a other companies whose strategic decisions are driven by committee.

Back to the DTM5. I’ve deployed the strategy onto the balance sheet of my operating business. But not the DTM5 per se….The DTM5-C. ‘C’ is for corporate. It is the same strategy, focused on 5 investments participating in sectors in secular growth trends, but the ‘C’ will only invest in ETFs and larger cap (note: ‘larger’ – Not ‘large’) companies that offer reasonable liquidity. And don’t worry – this is a dollar cost averaging strategy and as such will remain a small (but growing) part of the company’s assets for some time. I want some downside to build positions over time!

The net result is exposure to the target asset classes, more diversification via higher utilization of ETFs, a higher degree of liquidity, and no early stage / micro cap company risk. The trade off is no potential micro cap / shorter term exponential growth exposure.

The target allocation and holdings are:

20% Blockchain Technologies ETF (HBLK) – A novel ETF holding both established companies that will benefit from Blockchain and dedicated companies focused exclusively on blockchain. Perhaps the only ‘one stop’ ETF for Blockchain exposure (and very much under the radar). My commentary can be found on my post: https://dtm5.com/2021/02/01/harvest-blockchain-technologies-etf-creating-an-etf-on-ramp-for-investors/

20% HIVE Blockchain Technology (HIVE) – In my opinion, the highest quality publically traded crypto miner. My comments are here: https://dtm5.com/2021/01/04/deeper-dive-hive-blockchain-technologies/

20% iShares S&P/TSX Global Base Metals Index ETF (XBM) – This is a new addition to the DTM5 strategy and held only in the DTM5-C portfolio. It is a base metals Index ETF that gives one stop exposure to mainly industrial metals and mining stocks – Its a cousin to the secular Gold thesis that I’ve been investing in, driven by a conviction of the importance that global base metals will have over the next decade.

20% Sprott Inc (SII) – Sprott is a direct play on gold and silver with a small exposure to commodities. It often trades as a proxy for Gold, but has some upside (and downside) leverage based on its asset management structure. I find this an easier to understand / value investment than actual miners simply based on the fact that an asset manager runs lean; Doesn’t require massive capital investment to operate; Isn’t stuck with jurisdictional problems; Basically operationally far less risky at every level.

20% TD Global Technology Leaders ETF (TEC) – Well this is where the DTM5 gets generic. TEC is an index of mid and large cap technology companies. I wouldn’t call this one a ‘best idea’. I’d call it a ‘smart move’. It answers the following questions: Over the next decade, what sector is likely to outperform? What are the most successful companies of the future doing? What would be a good asset class to dollar cost average into over the next 10 years? How do I get quality exposure to investments that I would have a hard time deeply understanding?

Here is what the account looks as of February 24

Symbol	Description	% of Positions
HBLK	BLOCKCHAIN TECHS CL-A ETF	19.54
HIVE	HIVE BLOCKCHAIN TECHS LTD	21.30
XBM	ISHARES S&P/TSX GLBL ETF	18.48
SII	SPROTT INC	21.14
TEC	TD GLOBAL TECH LEADER ETF	18.27
CASH		1.27
Total		100

So, in summary, I have a focused (5 investment) portfolio that I’m building onto the corporate balance sheet. It is 40% Blockchain Technology, 40% Gold and Base Metals, and 20% Technology. VERY different from what my operating company does – we are not exposed to any of these sectors.

I think the mix will provide a lot of volatility, a lot of opportunity to dollar cost average in times of turmoil, and a lot of long term upside.

The first deposit to this account occurred on January 1st. I’ve already re-balanced the portfolio based on the explosive continued growth on the block chain investments. The portfolio is up 43.88% so far. Quite the start!

Ciao for now!