Institutional Asset Management

Ritholtz Wealth Institutional Asset Management provides independent advice and investment management services to a wide range of institutional clients including family offices, foundations, endowments and pension plans. Every investment plan is established to fulfill a unique liability or need of an organization’s mission. We combine market wisdom, technological savvy, personalized planning and structured advice to help clients achieve their specific goals.

We believe that successful long-term investing involves the use of a straightforward, uncomplicated approach. We believe long-term performance is important, but we also recognize the need to manage risk within the context of meeting an organization’s goals, objectives and future spending needs. Thus we create portfolios that are easy to understand, operationally efficient, low-cost, transparent and liquid.

We work with institutional clients in a number of ways:

Organizational Alpha

Most investors discuss alpha in terms of the performance of a specific investment portfolio or fund relative to its benchmark. However, there is a much broader context to alpha –

the entire organizational structure wrapped around the portfolio is actually a potential source of alpha, yet very few institutional funds spend their time on this angle. We help institutions develop a better decision-making framework for their investment programs through intelligent portfolio design and investment policy guidance. Through the review and documentation of the Investment Policy Statement (IPS) we act as managing fiduciaries, developing a comprehensive plan for due diligence and portfolio monitoring and work to avoid the crippling mistakes many in the institutional investment world make on a regular basis.

Please contact us for a free copy of our book on this subject called Organizational Alpha: How to Add Value in Institutional Asset Management.

Investment Management

We choose to place asset allocation as the centerpiece of our investment process. Our decision-making framework is focused on long-term investment policy actions which extends beyond traditional asset classes of equities and fixed income, and into different geographies, strategies, risk factors and investment styles. A bias towards equities can increase returns, while diversification is used to reduce risk. We are primarily concerned with how investment strategies and asset classes complement one another and work together in an overall portfolio construct, rather than focusing on their individual characteristics. Two of the central tenets of our investment management process are portfolio construction and risk management. We believe that thinking and acting for the long-term is paramount; this idea is at the heart of our client service and asset management program. Behavioral counseling, a balanced investment plan and consistent communication are the tools we employ to help our clients utilize “time arbitrage” to their advantage.

Risk Management

While the long-term is the only time frame that truly matters, we recognize that organizations and individuals are forced to make financial decisions in the short-to-intermediate term. This is why we created a proprietary risk management strategy to ensure that investors can handle periodic volatility without abandoning their investment plan. Our goal with this strategy is to provide a diversified return stream across different market environments, encourage good behavior, allow our clients to survive severe market disruptions, reduce volatility and eliminate the risk of making poor decisions in the heat of the moment by using a rules-based approach. Institutional investors and family offices are often disappointed with overpriced, illiquid, black box hedge funds so we created this strategy as a cheaper, more liquid, transparent alternative.