Smith Investments is a privately owned investment management company providing customized investment solutions to high net worth individuals, families, endowments and foundations. With over 30 years of experience, Smith Investments aims to build diversified portfolios to achieve long-term growth and capital preservation. Their investment philosophy focuses on assessing risks, controlling costs and adding values.
Smith Investments was founded in 1990 by John Smith in New York. It manages over $5 billion in assets for around 800 clients globally. Smith Investments offers investment advisory, wealth planning, tax and estate planning services. Its core investment capabilities include global equities, fixed income, hedge funds, real estate and private equity. The firm has over 50 employees and branches across New York, San Francisco, London, Hong Kong, Tokyo and Sydney.
Customized Portfolio Construction
Smith Investments starts the investment process by understanding each client’s unique needs and risk tolerance. The investment team then constructs customized portfolios using advanced analytical tools and professional judgement. Portfolios are highly diversified across different asset classes, market sectors, geographies and investment styles. This aims to maximize returns at an appropriate risk level over the long run.
Active Portfolio Management
Smith Investments follows an active portfolio management approach. Its investment committee and analysts continuously research the market to identify opportunities and risks. Portfolios are rebalanced regularly between asset classes and securities to maintain optimal allocations. Individual securities are bought and sold to capture upside potential and limit downside risks.
Focus on Cost Efficiency
Smith Investments emphasizes minimizing costs in portfolio construction and management. It leverages index funds and ETFs to gain broad market exposure at low cost. The use of passive vehicles helps reduce management fees and transaction costs. The firm also negotiates with asset managers aggressively for lower expense ratios.
Strong Risk Management
Risk management is an integral part of Smith Investments’ investment process. Portfolios are constructed to withstand different market environments using asset allocation, security selection and diversification. The firm monitors various risk metrics closely and makes timely adjustments to manage overall portfolio volatility and drawdowns.
Alignment of Interests
Smith Investments always puts clients’ interests first. Its fee structure is designed to align the firm’s interests with clients’ investment results. The firm invests significant capital in its own strategies alongside clients to ensure incentive alignment. Its corporate culture emphasizes fiduciary duty, transparency and accountability.
In summary, Smith Investments aims to achieve long-term capital appreciation for clients through actively managed, highly-diversified portfolios. Its customized solutions, strong risk control and alignment of interests make it a trusted investment advisor for high net worth investors.