Advantages of a Small-Sized Investment Advisor
Many large money-management organizations have been generating poor results or under performing major stock-market indexes, such as the Standard & Poor's 500, for many years. There are probably a number of factors that contribute to that disappointing performance.
1. Overly bureaucratized investment process that results in group-think and tends to dilute good investment ideas.
2. No clearly defined investment style or process.
3. Failure to protect clients' capital.
4. Inadequately identifying and serving clients' specific investment needs or objectives.
5. Excessive management fees and/or transaction costs.
Working with a small organization may be one way of circumventing some of the potential negatives listed above. A small firm is unlikely to be overly bureaucratic or political; investment decisions and investment strategies can be implemented quickly and easily. In addition, a $3 million account is much more important to a firm with $30 million under management than to an organization with $30 billion under management.
At RLR Capital Management, each account receives close, individual attention, and a portfolio is customized to satisfy a client's investment objectives.