Wealth management related items

How to choose a wealth management firm

  • When investors talk to a wealth manager they often assume that he or she is an investment specialist. In many cases this is far from the truth. Very often the first person an investors talks too is a relationship manager or a sales person. The relationship manager objective is to bring in as many clients as possible and the compensation scheme reflects this objective. There is no incentive for a relationship manager to recommend you the best possible investment strategy, but just anything which looks right or "suitable" or generates more management fees.

Wealth management: FAQ

Q. What ROI shall I expect?
A. We strive to be profitable every single month. Our clients generate ~0.5-1.5% monthly returns.
Our historical returns should not be considered as indicative of our future results.

Q. High ROI assumes very high risks?
A. Our Sharpe ratio (August 2016) is around 1.5 and Calmar around 10.0. Most of the time the cash levels exceed 95%.

Q. Sounds too good to be true
A. We provide records of our past trades and access to the accounts at Interactive Brokers to prove that the returns are very real.