As an investment management company, Lawrence investments llc has received mixed reviews from investors over the years. With assets under management of over $500 million, Lawrence investments serves individual and institutional clients across the United States. In this article, we will take an in-depth look at Lawrence investments llc, analyzing its investment strategies, fee structure, portfolio performance as well as pros and cons mentioned in Lawrence investments reviews. This objective analysis aims to provide investors with helpful insights to make informed decisions about Lawrence investments.
Investment philosophy focused on value investing and risk management
Lawrence investments describes its investment philosophy as value-oriented with a focus on risk management. The company seeks to build portfolios of undervalued stocks that have the potential for predictable capital appreciation over time. Lawrence investments implements rigorous fundamental analysis to identify investment opportunities and construct concentrated portfolios of 20-25 securities. Risk management is incorporated through portfolio diversification, asset allocation strategies and use of options overlays. This long-term value investing approach has garnered mixed reactions from investors, with some Lawrence investments reviews citing it as a core strength while others hoped for more aggressive growth-focused strategies.
Relatively high investment management fees
One of the most commonly criticized aspects of Lawrence investments in online reviews is their fee structure. The company charges an annual investment management fee of 1.0% on the first $1 million of assets, with a reduced fee on assets above $1 million. There is also an annual account administration fee of 0.50% for accounts below $1 million. Compared to robo-advisors that charge 0.25%-0.50%, Lawrence investments’ fees are at the high end for traditional investment advisors. Investors paying over 1% in fees need to see significant enough alpha generation from active management to offset the higher costs.
Mixed performance results over the past decade
An analysis of Lawrence investments’ performance shows mixed results over the past 5-10 years. The company’s U.S. Value Equity composite generated annualized returns of 10.8% over the past 10 years, underperforming the S&P 500’s 11.2% return over the same period. However, performance looks better over shorter time frames, with the U.S. Value Equity strategy returning 14.1% annualized over 5 years compared to the S&P 500’s 11.2%. The company’s portfolio managers have an average of 22 years of experience which provides stability, but the value investing approach has faced headwinds during much of the 2010s bull market.
Client-focused service model and customized portfolios
Positive Lawrence investments llc reviews frequently cite the company’s high-touch service, flexibility and customization as major benefits. Clients have access to a dedicated financial advisor who develops personalized portfolios aligned with their investment goals and risk tolerance. This level of customization comes at a cost, reflected in the higher fees. But for investors who want a tailored portfolio backed by fundamental analysis and active management, Lawrence investments delivers a client-centric approach.
Lack of alternative investment options
One weakness noted by some investors is Lawrence investments’ limited menu of investment strategies beyond traditional stocks and bonds. The company does not currently offer access to alternative assets like private equity, hedge funds or real estate, which can help enhance portfolio diversification. However, Lawrence investments’ focus on its core competency of value equity management allows it to provide specialized expertise within that discipline. The trade-off is less diversification across multiple asset classes.
In summary, Lawrence investments llc has built a loyal client base over the years by offering personalized portfolios and a high-touch investing experience. However, relatively high fees and mixed performance track record present challenges that investors should weigh carefully. The value investing approach requires patience to pay off. For investors aligned with Lawrence investments’ philosophy and willing to pay for active management, the company can be a good fit.