Boutique Investment Management for Private Clients

“In an era when many firms try to claim the title of ‘Boutique Wealth Management Firm’ or ‘Family Office’, Featherstone are genuinely both. Their founders, staff, families and friends are amongst their largest (and smallest) investors” – Spear’s Magazine

Bigger is not always better… in fact, ‘bigger often means mediocre.’ A boutique wealth management firm combines the best of all worlds…

There is a common misconception that the bigger investment companies are better… fuelled, of course, by the marketing machines of the large London based wealth management firms.

The truth is that the best funds are often off the menu for larger firms as they are restricted by their size to mass-market mediocre investments.

Why are smaller ‘Boutique’ Investment firms better?

Smaller ’boutique’ investment management firms have the ability to invest in niche, higher quality and (potentially) better performing investments.

“There are essentially two types of investment management firm – those that gather assets and those that generate alpha (out-perform). Big managers are asset gatherers, while the boutiques generate alpha.” Jonathan Little (Northill Capital)

There is a sweet spot, not too big, not too small…

Who are Featherstone?

  • Featherstone is a small but leading boutique wealth management firm and the only non-London firm included in Spear’s Magazine’s list of ‘Top 10 UK Wealth Managers’.
  • Our clients enjoy the qualities of a smaller, friendlier, boutique wealth management firm while benefiting from our team’s experience working for London firms such as Goldman Sachs, Odey, JP Morgan, UBS and Deloitte.
  • We are part of a group founded in 1999 to manage the investments of a single family, our clients can now invest alongside and in the same way as the original family.

BOUTIQUE INVESTMENT MANAGEMENT

Our clients invest in boutique ‘multi-manager’ or ‘fund of fund’ portfolios containing many of the world’s leading specialist boutique investors… often in smaller, lesser-known and harder-to-discover funds than large wealth management companies have exposure to.

We identify the ‘megatrends’ of the future and our team search the world for small specialist boutique investment mangers who invest in these themes… we may invest a robotics fund run in Tokyo, an online security fund in Palo Alto or a Biotech fund in Oxford for example.

This approach allows us to utilise a network of boutique investment management specialists who provide genuine sector insight and expertise.

Click here to find out more…

Advantages Of Smaller Firms

The problems with Large London Wealth Management Firms

The most insightful and high-quality fund managers are often not available to private clients for various reasons:

  • Too small for large London wealth management advisors to invest in
  • They do not deal with UK private clients
  • High minimum investment sizes
  • Closed to new investors
  • Low profile and do not actively raise capital i.e. you have to find them.

The UK wealth management industry has consolidated and become homogenised dramatically which is to the detriment of the client, who now has less choice and is bundled into a strategy that is often too large to offer anything beneficial.

This view is summed up succinctly in Citywire:

“The larger wealth managers are busy consolidating which means that they then run up against company or investment fund liquidity issues, meaning that boutique funds and non-large-cap companies are often off the menu, which is where many of the best investments are.”

Other advantages of Boutique Wealth Management firms

Other advantages of boutique investment management include clients’ close contact with senior members of the firm, a friendlier and approachable atmosphere, often lower fees and in Featherstone’s case, investment alongside and in the same way as the owners and staff of the business.

“As a firm grows in size, it becomes more institutionalised. The staff loses its sense of ownership of the firm and motivation drops. The culture changes and the shared vision fades.” Jonathan Little (Northill Capital)

Why is Featherstone a boutique investment management firm?

Our team at Featherstone are escapees of large London-based investment banks, hedge funds and UK investment management companies who have benefited from the experiences they have had in ‘The City of London’ but prefer to practice in a smaller, more entrepreneurial, more approachable and friendlier boutique investment management environment.

Subsequently, our clients benefit from closer access to higher quality, more experienced staff than they often would at a larger London based firm full of recent graduates.

Our focus is not on gathering assets …

We are committed to keep the size of our firm small enough to benefit our clients, and we will close the door to new investors when the size of the firm is optimal. We will always remain a boutique investment management firm.

Reference: https://www.ipe.com/boutique-asset-managers-best-of-both-worlds/44616.fullarticle

Boutique Wealth Management

Boutique Wealth Management versus London Wealth Management

The advantages of investing with a boutique wealth management firm are many, for more information about investing with Featherstone  please click here