The Short-Cut can easily create a DADGAD-like sound, without retuning. To do so, just place the Kyser Short-Cut on the 2nd fret from the top to cover the 5th, 4th, and 3rd strings.
To play in a different key, you can use a 2nd capo closer to the headstock than the Kyser Short-Cut. For example, place a capo covering all 6 strings on the 3rd fret and the Kyser Short-Cut on the 5th fret to play in the key of G.
The Kyser Short-Cut can be used on any fret, in standard or inverted position.