Private Money Management Portfolio Strategy

Private Money Manager vs. Wealth Manager

 

Northstar works as a Private Money Manager for its clients. This is different than the way most investment advisors manage money.


Typically, investment advisors call themselves wealth managers. Their role is often to oversee your portfolio, but they don’t directly manage the money you have placed with them. They outsource it to another firm that makes the decisions about the specific securities to buy and sell in your portfolio.


This third party can be a mutual fund company, a separate account manager (SMA), or an index fund company. This means the folks actually deciding on what securities go into your portfolio don’t know you or understand your objectives. We consider these fund managers public money managers, meaning they manage money for a broad range of investors who place money in the funds.


As a private money manager, we make the decisions about what companies are included in your portfolio and we know our clients individually. Because we know our clients personally, and we do our own stock research and portfolio construction, we believe we have a much better fit between our clients’ objectives and their portfolios.


Plus, our Private Money Manager approach is often less expensive than industry average because clients are not also paying a third party to manage their money. Watch the short video below to learn more: https://vimeo.com/310198669

Private Money Manager vs. Wealth Manager

Private Money ManagerWealth Manager
We run a specific portfolio of individual stocks, currently about 50 holdings. We do our own research and security selection. We know what’s in our portfolios at all times.Generally run broad-based asset allocation portfolios, with many different third party managers running aspects of the portfolio.  The wealth manager general does not do specific company research. Often, they do not know what securities are in your portfolio at all times.
Money managers can report their historical performance for clients in their core portfolio strategy. The report is called a “composite report”, and it provides data on historical returns for client accounts that are run to the manager’s objectives.Wealth managers generally cannot provide historical performance data on their actual client portfolios because they often do not run composite returns. Thus, we think it’s harder for people to evaluate the wealth manager’s abilities.
Clients work directly with the money manager; thus the folks deciding what companies to buy and sell know you personally.Clients work with the wealth manager and often never know or speak to the people actually running portions of their portfolio.
One layer of feesTwo layers of fees

 

If you are interested in talking about a Private Money Manager relationship, we’d be more than happy to talk with you. Please contact us at 303-832-2300, or email us at fbtaylor@northstarinvest.com