For individual investors:
Do you suspect that you aren’t getting good value out of the investment industry?
So do we. That’s why Areté Asset Management was founded. With over 25 years of investment experience, we have seen all kinds of practices that don’t help customers. As investors ourselves, we know how hard it is to find good services.
Why does this happen?
While the trend of improved efficiency has swept broadly across the economic landscape, the arena of investment management remains stubbornly inefficient in many respects. There are a lot of reasons for this, but suffice it to say, there are plenty of opportunities for improvement.
What makes Areté different?
In short, we care more about doing great investment work than about accumulating huge amounts of assets. This preference reflects a philosophical divide between a focus on the profession of investing and a focus on the business of investment management.
The direction a firm takes on this issue determines the lens through which it views the markets and opportunities. Firms that focus on the business of investing know that incremental revenues generate extremely high profitability. As a result, the top priorities of these firms are to grow assets and to retain existing clients. Practically, this means substantial resources are devoted to marketing and distribution efforts and stock selection tends to avoid controversial ideas that offer higher returns but also risk the loss of assets if unsuccessful.
Firms that focus on the profession of investing know that size is the enemy of performance and strive to prevent assets under management from outgrowing market opportunities. These firms also know that any costs not related to generating investment returns, such as those for marketing and distribution, serve as an ongoing drag on performance and strive to minimize them.
None of this is to say that Areté is oblivious to or naïve about the business demands of investment management. It is to say, however, that when push comes to shove, a lot of investment organizations make decisions that tend to favor their own profitability. Areté isn’t a charity, but nor does it need to be; we just want to offer investors a fair deal.
So do we. That’s why Areté Asset Management was founded. With over 25 years of investment experience, we have seen all kinds of practices that don’t help customers. As investors ourselves, we know how hard it is to find good services.
Why does this happen?
While the trend of improved efficiency has swept broadly across the economic landscape, the arena of investment management remains stubbornly inefficient in many respects. There are a lot of reasons for this, but suffice it to say, there are plenty of opportunities for improvement.
What makes Areté different?
In short, we care more about doing great investment work than about accumulating huge amounts of assets. This preference reflects a philosophical divide between a focus on the profession of investing and a focus on the business of investment management.
The direction a firm takes on this issue determines the lens through which it views the markets and opportunities. Firms that focus on the business of investing know that incremental revenues generate extremely high profitability. As a result, the top priorities of these firms are to grow assets and to retain existing clients. Practically, this means substantial resources are devoted to marketing and distribution efforts and stock selection tends to avoid controversial ideas that offer higher returns but also risk the loss of assets if unsuccessful.
Firms that focus on the profession of investing know that size is the enemy of performance and strive to prevent assets under management from outgrowing market opportunities. These firms also know that any costs not related to generating investment returns, such as those for marketing and distribution, serve as an ongoing drag on performance and strive to minimize them.
None of this is to say that Areté is oblivious to or naïve about the business demands of investment management. It is to say, however, that when push comes to shove, a lot of investment organizations make decisions that tend to favor their own profitability. Areté isn’t a charity, but nor does it need to be; we just want to offer investors a fair deal.
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