We have taken a different path from traditional money managers in that we sell no products, we have a proprietary method of choosing individual stocks, we take a hands-on approach to managing our clients’ portfolios and we share the same risks by investing our own funds in those same securities. As a result, our clients understand the benefits we provide and the impact that a professional money manager may have on their future.
The securities are held in a Separately Managed Account by an independent custodian. Like mutual funds, these Separately Managed Accounts offer the benefits of professional money management and diversification. Unlike mutual funds these Separately Managed Accounts provide the following additional features:
ACCESS TO UNIQUE INVESTMENT STRATEGIES
Successful active management is not available to everyone because it requires finding active managers with above average skills. These managers, such as Beacon Street Capital, have usually uncovered and taken advantage of an inefficient anomaly in an otherwise efficient market.
PORTFOLIO CUSTOMIZATION AND CONTROL
You can restrict your investment manager not to invest in certain types of companies that may conflict with your professional duties or personal beliefs. You also have full transparency of your account 24/7.
CAPTURE STOCK MARKET RETURNS WITH GREATER EFFICIENCY
Besides a lower fee structure, the selection of an active manager to replace market risk with active risk can often result in higher market returns with less volatility over time. This enhances wealth building over the long term.
CONTROL OVER DISTRIBUTION OF REALIZED CAPITAL GAINS AND LOSSES
With mutual funds, only realized capital gains may be distributed, generally creating a taxable event for you. In a Separately Managed Account, realized losses may be taken to help offset your tax liabilities. This may be a benefit should you have realized taxable income or a taxable capital gain outside of your managed investment portfolio. Consult your tax adviser for more information.