A great investment service requires far more than just good individual pieces. Just like a great meal, it requires excellent ingredients, a recipe that balances each ingredient carefully, skillful preparation, and expert presentation.
Areté invests in a way that uniquely provides these benefits:
The performance INTENSITY of great hedge funds
AND
The SECURITY of institutional separate accounts
AND
FEES that are lower than or equal to most actively managed equity mutual funds
AND
ACCESS to great information and insight
AND
The SECURITY of institutional separate accounts
AND
FEES that are lower than or equal to most actively managed equity mutual funds
AND
ACCESS to great information and insight
Value Proposition
Many firms and investment services have established competence in one or two areas and can be impressive in that context. We realize, however, that such a narrow focus fails to account for the most important end result: Are you better off?
With your well-being as our primary goal, we have combined a wide range of features which we believe give you the best chance to get ahead with investing.
Commitment to putting our clients first
We are completely committed to putting the interests of our clients first. We do not employ any soft dollar arrangements because we believe these essentially end up being “hidden” fees for customers that are appropriately business expenses and should therefore be covered by the management fee. We do not operate in any other businesses that may provide conflicts of interest. All client accounts are treated exactly the same; no preferences are shown because the same trades are placed for every account at the same time. We also provide performance reporting so you can judge for yourself how we are doing.
Reasonable fee structure
We employ a very straightforward and reasonable fee structure of 1% of assets under management for assets up to $1 million with lower rates beyond that. This compares to many mutual funds which have expense ratios in excess of 1.5%. In addition, we don’t employ performance fees because we believe such fees often provide incentive to the manager to take inappropriate risks in order to realize those fees.
Active management
Your portfolio will be actively managed giving you a real chance to outperform the benchmark. Index funds seek to replicate benchmark performance, but fall short when management fees are included. Some funds try to stay close to their benchmark or “closet index” in order to minimize the chance of significant underperformance. You will get a portfolio that benefits from our experience and expertise in stock selection, risk management, and portfoliio construction.
Long-term perspective
Our research focuses on long-term insights, not on short-term noise and trends. We believe that over longer periods of time, financial assets migrate toward their intrinsic values. We also believe this phenomenon can be exploited by those who are both skilled enough to make reasonably accurate estimates of intrinsic value and patient enough for it to be realized. During shorter, interim periods, however, the numerous and diverse effects on trading activity make it excessively difficult to consistently determine the direction of stock prices.
Relatively low portfolio turnover
Our investment style is oriented to a longer-term time horizon of three to five years. As a result, our portfolio turnover tends to fall in the 20-40% range compared to the industry average of over 100%. Lower turnover means lower transaction costs for you and also tends to mean lower capital gains for taxable accounts.
Separate account structure
We manage separate accounts for clients rather than pooling contributions from various clients. Assets are held in custody by a national recognized custodian and clients receive quarterly statements of exactly what is in their individual account and a list of transactions executed for that account. There is no ambiguity. We believe the separate accounts structure greatly improves the visibility of the investment process as well as the portfolio accounting. We believe this high degree of visibility serves as a significant layer of protection for clients against neglect or malfeasance.
Independent ownership
Our firm is independently owned and operated which we believe gives us the best chance to make the best possible decisions for our clients. We have no outside owners which may have interests that could conflict with the interests of our clients. Some industry experts consider independence to be a competitive advantage.
With your well-being as our primary goal, we have combined a wide range of features which we believe give you the best chance to get ahead with investing.
Commitment to putting our clients first
We are completely committed to putting the interests of our clients first. We do not employ any soft dollar arrangements because we believe these essentially end up being “hidden” fees for customers that are appropriately business expenses and should therefore be covered by the management fee. We do not operate in any other businesses that may provide conflicts of interest. All client accounts are treated exactly the same; no preferences are shown because the same trades are placed for every account at the same time. We also provide performance reporting so you can judge for yourself how we are doing.
Reasonable fee structure
We employ a very straightforward and reasonable fee structure of 1% of assets under management for assets up to $1 million with lower rates beyond that. This compares to many mutual funds which have expense ratios in excess of 1.5%. In addition, we don’t employ performance fees because we believe such fees often provide incentive to the manager to take inappropriate risks in order to realize those fees.
Active management
Your portfolio will be actively managed giving you a real chance to outperform the benchmark. Index funds seek to replicate benchmark performance, but fall short when management fees are included. Some funds try to stay close to their benchmark or “closet index” in order to minimize the chance of significant underperformance. You will get a portfolio that benefits from our experience and expertise in stock selection, risk management, and portfoliio construction.
Long-term perspective
Our research focuses on long-term insights, not on short-term noise and trends. We believe that over longer periods of time, financial assets migrate toward their intrinsic values. We also believe this phenomenon can be exploited by those who are both skilled enough to make reasonably accurate estimates of intrinsic value and patient enough for it to be realized. During shorter, interim periods, however, the numerous and diverse effects on trading activity make it excessively difficult to consistently determine the direction of stock prices.
Relatively low portfolio turnover
Our investment style is oriented to a longer-term time horizon of three to five years. As a result, our portfolio turnover tends to fall in the 20-40% range compared to the industry average of over 100%. Lower turnover means lower transaction costs for you and also tends to mean lower capital gains for taxable accounts.
Separate account structure
We manage separate accounts for clients rather than pooling contributions from various clients. Assets are held in custody by a national recognized custodian and clients receive quarterly statements of exactly what is in their individual account and a list of transactions executed for that account. There is no ambiguity. We believe the separate accounts structure greatly improves the visibility of the investment process as well as the portfolio accounting. We believe this high degree of visibility serves as a significant layer of protection for clients against neglect or malfeasance.
Independent ownership
Our firm is independently owned and operated which we believe gives us the best chance to make the best possible decisions for our clients. We have no outside owners which may have interests that could conflict with the interests of our clients. Some industry experts consider independence to be a competitive advantage.
©2023 Arete Asset Management | See our Disclosures