An Alternative Approach to Helping Investors Reach their Long-term Investment and Retirement Goals
Belleros Capital Management is an independently owned investment management and advisory firm serving investors who have a desire to embark on an investment strategy that will help them reach their long-term investment and retirement goals. Our primary purpose is to help investors reach their financial goals through a plan to minimize the “all-in” investment-related fees they pay, increase the value-add they receive from their investments, and by working with them to develop a strong level of investment discipline that will help them maximize their wealth generation potential.
We work with our clients to develop a fee conscious, internally managed, and disciplined long-term investment strategy that will help them succeed in reaching their investment and retirement goals. We understand that our clients are the number one priority and will do everything possible to make sure we aren’t a part of their problems, but rather a part of their solution. As a fiduciary to our clients, we will work with integrity and will at all times endeavor to minimize the conflicts of interests that may harm them. We will also strive to offer a greater standard of care than what is already available to investors.
Identifying the Problem
We believe the three biggest threats to a secure future for you and your loved ones include the high investment-related or “all-in” fees you pay, the poor absolute and relative investment performance you experience, and the failure to employ discipline and the commitment necessary to succeed in a long-term investment strategy. The Financial Services and Investment Advisory industries have failed many of the investors it has sought to help in this regard because of the high fees it charges, a lack of commensurate benefit conveyed in return for those fees, and a general failure by investment advisors to instill upon their clients the discipline required for general investment. “All-in” investment related fees are too high. Active management continually fails to add value for most investors. Many investors still fail to separate gambling and speculation, from a more nuanced investment strategy and thus fail to display the discipline and patience required and integral to investment success. As a result, many investors are falling behind or failing to reach their long-term investment and retirement goals. In a way, the Financial Services and Investment Advisory industries have become a part of the problem and have failed to become a part of the solution for many investors. They have themselves become a large obstacle wedged between investors and their goals.
“All-in” investment-related fees include investment advisory fees associated with “financial planning” or “wealth management”, direct investment management fees or expense ratios (such as those with mutual funds or ETFs), transaction or trading costs for stocks/ETFs, bonds, and/or mutual funds purchases, front or back-end mutual fund loads, and any other costs connected with custodial services and investing generally. The largest costs for most investors include fees for investment advisory charged by their financial planning or wealth management firm and expense ratios for the mutual fund they recommend (assuming clients are invested in no-load mutual funds).
Our Solution and Value Proposition
We help our clients by collapsing the industry fee structure and by helping to minimize their “all-in” investment-related fees, including those for unnecessary products and services.
Most of the investment-related fees investors pay are directly attributable to their investment advisor or indirectly so through the investment recommendations they make. A typical investment advisor charges a fee for his/her services and outsources the actual investment management function through the use of a mutual fund or ETF, thus creating multiple layers of fees charged to the client. We directly manage investment portfolios for clients and do not sell other investment or insurance products that do not add value and may not be in our clients’ best interests.
Did you know? An average investor pays roughly 1.5% in all-in investment-related fees with many paying well over 2% annually. We believe all investors should be paying all-in fees close to or below 1%.
We strive to help our clients maximize the benefits they receive from their investments.
Fees are a large reason why active managers fail to generate excess returns. But over-diversification and a lack of differentiation in investment strategy are other major causes of investment management failure. Our firm utilizes a long-term investment strategy that considers stock market volatility to be an opportunity for investment in quality companies that sell at prices below their intrinsic values. Unlike many of our peers, we consider a permanent loss of capital to be the greatest risk to investors and over-diversification to be a destroyer of excess return. Our company utilizes a concentrated portfolio mandate that limits us to the best opportunities available at any given time. We do this not out of convenience, but rather because we believe it increases our probability of success. We understand that excess return is only possible with a differentiated investment strategy.
Did you know? Active investors should demand at least 1% in excess returns (net-of-fees) to compensate for risks inherent to active investing.
We help our clients find and maintain the discipline required to keep them on the path to long-term investment success.
In our experience, the failure to maintain investment discipline is perhaps the single greatest mistake an investor can make. Investors can experience a very serious and large permanent loss of capital when they engage in short-term market timing actions based on the fear of stock market volatility. These deviations from their long-term investment plans can significantly impair their goals. We believe we can help our clients maintain discipline through a rational long-term investment management process that is patient and unemotional. We believe that helping clients maintain a proper and disciplined perspective on their long-term investment and retirement goals will allow optimal time for the benefits of fee minimization and value adding investment management to accrue, grow, and compound in a way that will maximize their wealth generation potential.
Did you know? Investing is by definition long-term. Failing to adhere to a long-term investment strategy can be the greatest risk to investors and their long-term investment and retirement goals.
Please Contact us for a complimentary review of your investment advisory fees, your current investment portfolio, and to discover how we can help you maximize your wealth generation potential.
DISCLAIMER: Investing involves risk including the potential loss of principle. No investment strategy can guarantee a profit or protection against loss in periods of declining value. Past performance does not guarantee future results. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.