CUSTOM SEPARATELY MANAGED ACCOUNTS

Long-Only Custom SMAs.

DGS builds custom long-only portfolios that combine systematic investing with tax-efficient management, tailored to the advisor’s preferences and each client’s needs.

How IT Works

The Portfolio Construction Process

Portfolio structure and design can be standardized at the firm level, with customization available at any stage for each client account.

STEP 01

Assign Target Asset Class

From a simple single-asset-class target to a custom blend of multiple indices, DGS offers flexible benchmark creation.

STEP 02

Design around constraints

The strategy is customized at the account level, allowing for multiple layers of client-specific preferences and requirements.

STEP 03

Incorporate systematic tilts

DGS’s systematic approach to managing equity portfolios is applied as an overlay to the target benchmark and constraints.

STEP 04

Ongoing Management

DGS continues ongoing portfolio management, targeting pre-tax excess returns and tax alpha.

WHY ADVISORS CHOOSE DGS

Long-only SMAs, built around the client.

Four reasons advisors choose DGS Capital to implement and manage their client's core equity exposure.

Tailored Portfolios

Portfolios can be designed around existing holdings and client-specific constraints, instead of a cookie-cutter model.

Disciplined, Systematic Approach

Portfolios are constructed to seek superior expected risk-adjusted returns through disciplined, data-driven investment strategies.

Tax Efficient

Individual-stock ownership enables strategic rebalancing, tax-loss harvesting, and incremental portfolio improvements over time.

Direct, Real-Time Access

Portfolio questions are addressed directly by the team managing your strategy, eliminating unnecessary administrative layers.

How IT Works

Client situations where long-only custom SMAs add the most value.

A closer look at the portfolios and households where a flexible, tax-aware long-only SMA can add value.

01 / TAX DRAG

Tax-sensitive clients

Clients in higher tax brackets may experience unnecessary tax drag from turnover or pooled investment structures.

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02 / CONCENTRATED STOCK

Large appreciated positions

Investors with concentrated single-stock positions carrying substantial unrealized gains who are not ready for an outright sale.

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03 / legacy PORTFOLIOS

Portfolios built over many years

Accounts assembled over time, often across multiple advisors, may show overlapping exposures, style drift, and operational inefficiencies.

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04 / CUSTOM CONSTRAINTS

Clients with specific restrictions or preferences

DGS’s customizable portfolio construction is well suited for complex client situations that demand nuanced investment strategies.

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05 / HOUSEHOLD COORDINATION

Advisors managing complex households

Multi-account households can benefit from deliberate asset location and an individual equity strategy managed at the household level.

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06 / STRUCTURED TRANSITION

Transitioning to a structured approach

Gradually evolve a portfolio in a deliberate, sequential way, rather than through a disruptive lump-sum liquidation.

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REAL OUTCOMES

Real long-only custom SMA Cases

How DGS builds a custom long-only portfolio around an existing account — embedded gains, legacy holdings, and constraints included — improving the portfolio without a full reset or unnecessary tax impact.

CASE STUDY · APEX DIVERSIFY

$1.16M expected tax savings and 48% losses realized.

The client and his partners sold the majority of their long-held business for +$50M, with each partner facing close to an eight-figure capital gain liability.

NET CASH FLOWS

$4.2M

Legacy Equities
incl $2.0M unrealized gains

$6.2M

Cash Deposit

$10.4M

Total

Strategy Details

Global Equities
Systematic Approach
150% Long / 80% Short

STRATEGY PERFORMANCE

Equity Portfolio Return 38.8%

Total Portfolio ( 70% Equity / 30% Cash )25.8%

Benchmark (Global Equities)27.7%

$6.2M Cumulative losses realized

9 MOTime in Strategy

$1.16MExpected tax Savings

48%Losses realized as % of deposit

* Results depend on market conditions, holding period and individual circumstances. Past performance does not guarantee future results. See disclosures.

Get an advisory call directly from our CIO.

Bring a real client situation you’re working on - concentrated stock, a legacy portfolio, a complex tax picture, or a cash implementation. We'll workshop it on a 30-minute call and follow up with a detailed implementation plan.

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Long-Only Custom SMAs.

$200K

Lot-level

100%

The Portfolio Construction Process

Assign Target Asset Class

Design around constraints

Incorporate systematic tilts

Ongoing Management

Long-only SMAs, built around the client.

Tailored Portfolios

Disciplined, Systematic Approach

Tax Efficient

Direct, Real-Time Access

Client situations where long-only custom SMAs add the most value.

Tax-sensitive clients

Large appreciated positions

Portfolios built over many years

Clients with specific restrictions or preferences

Advisors managing complex households

Transitioning to a structured approach

Real long-only custom SMA Cases

$1.16M expected tax savings and 48% losses realized.

Get an advisory call directly from our CIO.