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We design, implement, and manage custom tailored portfolios of liquid assets for high net worth investors. In order to avoid the potential conflict of interest found in most of the financial industry, we do not accept commissions on any transactions in client accounts. We sell no assets. Instead, we charge a management fee that is based on the market value of the account. That fee ranges from 1.5% per year down to 0.5%, depending on the size of the account.
For the safety of the client’s assets, we do not hold cash or securities at Brookside Capital, Inc. Assets are held at a brokerage firm or bank custodian of the client’s choice. The minimum account size is generally $1 million.
There is a wide range of issues to consider when designing a portfolio strategy for a client. Among these issues are age, other assets held, income requirements, taxes, specific funding goals, and personal preferences. However, the most important consideration is defining the acceptable level of risk for each client. We have found that this is both a financial and comfort level that varies broadly by client. Through financial modeling and some proprietary questionnaires, we help the client understand their specific acceptable risk level, and then design a strategy that optimizes the potential rate of return without exceeding that risk limit.
Stated simply, all clients want to make as much money as they can—without exceeding their own unique risk level.
In selecting assets, we start the decision process at what we call the “SEP” level. SEP stands for “Social, Economic, and Political” themes. Our research has unquestionably shown that understanding these global, long-term themes is the most essential element in determining investment success or failure. Our Board of Advisors is the key group in helping us understanding these themes. Some examples include The Revolution in Healthcare, Homeland Security, Consumer Value, The Information Age: Part 3, Nanometrics, and The Education Failure. There are many others, and the list is fluid and always evolving.
We meet with our clients often to keep them up to date on their portfolios and our outlook. This also gives them the opportunity to keep us current on any changes in their lives so that we can make any necessary adjustments in their portfolio strategy.
If you would like to make an appointment to discuss your investment management needs, give us a call or email us at jtrea@brooksidecapital.com. We are located in the Marina District in San Francisco. |