The DTM5 is not all about Crypto. In fact, crypto sector investments account for less than a quarter of the DTM5’s holdings. But Cypto makes a lot of noise and is in a state of hyper evolution, like a gifted yet cranky child. So my two current positions in that space, GLXY and ETHC end up getting 75% of my attention. Which is fine. One has to keep an eye on the kids.

But what about the quiet, well behaved investments – the others in the DTM5. You know, the ones I have high hopes for over the next 2, 3 and 5 years as management executes their strategy and vision. These are the kids you can trust to be alone at home and not burn the place down. The ones that likely won’t get a tattoo on their face. You get the idea.

Here is a snapshot of some of the ‘other’ investments that the DTM5 is involved with right now.

SHG – Skylight Health TSX: SHG

Growing via an acquisition and consolidation strategy “Skylight Health operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing as well as a subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.”

Skylight is a small cap healthcare clinic consolidator, positioning itself to catch the evolution to value based primary care health services in the US. It is early stage, with an ambitious acquisition strategy and first rate management. I think there is serious scaling and organic growth potential here with a potential technology kicker.

RFG – RF Capital Group TSX: RCG

Newly restructured, RF Capital “is one of Canada’s leading independent wealth management firms focused exclusively on providing strategic wealth advice and innovative holistic investment solutions customized for high-networth families or entrepreneurs.”

I’ve watched RCG (Formerly GMP) for many years, from its heyday as a trading based brokerage and merchant bank through its failure to keep pace with the evolving institutionally dominated wealth management landscape. With interest I’ve followed its restructuring over the past two years; First as a skeptic thinking it was merely another stage in its slow demise, but eventually coming to believe in the restructuring strategy and strategic opportunity of the company.

SII – Sprott Inc. NYSE/TSX: SII

From Sprott’s website: “Sprott is an alternative asset manager and a global leader in precious metal investments. Through its subsidiaries in Canada, the U.S. and Asia, Sprott is dedicated to providing investors with specialized investment strategies that include Exchange Listed Products, Managed Equities, Lending and Brokerage”

The DTM5 isn’t always about smallcaps. I like the Gold / Precious Metals space. And I like asset managers – I used to work in that field, have invested in them many times and know how to value them. Interestingly, the growth potential of SII is the lowest of all DTM’s holdings. But I understand it, I’ve successfully traded it over the past decade, so it makes a handy gold proxy with some leverage to the upside based on their asset management model. Its like a utility player on the basketball bench. I know what its capable of and how to manage it. Every team needs this kind of player.

QIPT – Quipt Home Medical TSX/NASDAQ: QITP

QITP is a consolidator of home respiratory medial equipment providers. From their Q1 2021 Presentation The company operates a largely subscription-based revenue model, providing not only the initial equipment delivery and implementation to thousands of patients each year, but also manages periodical resupply orders for patients throughout the year.

QITP shows a lot of promise with its acquisition strategy and so far so good! They recently completed an up listing to NASDAQ. The Company is at the stage where it is becoming a ‘show me’ story. And that’s a good thing as they look like they will continue to execute.

And a thought on a natural bias that works for DTM

And as I write this its occurring to me why I’m a fan of SHG and QITP but not some other companies (and there are quite a few!) in the earlier stage US healthcare space. I’m naturally biased to liking businesses that have legitimate, non-technology centric investment premises. Both QITP and SHG have their technology / processes – and the value they can MAYBE derive – as a key part of their investment pitch. Hey, if it works, that would be great! However, their underlying revenue growth premise is the acquisition / consolidation of their target markets with a positive return on capital. It is kinda old school. And a legitimate growth strategy, not predicated on ‘market adoption’ or fantasy sales of a new technology. So, by discounting any technological sales pitches out of the equation, there is some safety from wishful thinking or perhaps management overselling the potential value of the technologies (proprietary software, AI, processes) in their businesses.

GLTA!