Balyasny Asset Management L.P.
Balyasny Asset Management (BAM) is a fee-only firm in Chicago, Illinois. It has nearly $200 billion in assets under management (AUM), all in pooled investment vehicles. It does not offer traditional asset management, where an advisor takes a client’s money and invests it into a variety of different securities and funds. If that is what you are looking for, consider using SmartAsset’s free financial advisor matching service to find one.
Access to the pooled investment vehicles is for high-net-worth individuals and institutional clients.
In addition to its Chicago headquarters, BAM has offices in New York, San Francisco, Boston, Miami, Greenwich, Connecticut, Austin, Texas, Houston, Toronto, Calgary, London, Dubai, Hong Kong, Singapore and Tokyo.
Balyasny Asset Management Background
BAM was founded in 2001 as Balyasny Capital Management, LLC. In 2003, it converted from a limited liability corporation to a limited partnership, and in 2004 the name was changed to its current form.
Dmitry Balyasny, who founded the firm with Scott Schroeder and Taylor O'Malley, owns approximately 70% of the business.
Balyasny Asset Management Client Types and Minimum Account Sizes
The firm does not have individual clients in the traditional sense – that is, clients whose money it manages with investment advice. Instead, BAM takes money into its pooled investment vehicles.
The clients for those pooled investment vehicles are high-net-worth individuals, family offices, other private investment funds, funds of funds, investment companies, trusts, estates, U.S. and non-U.S. institutions, charitable institutions, sovereign wealth funds, foundations, endowments, municipalities and corporate pension and profit-sharing plans.
Balyasny does not list a minimum account size to invest in its pooled investment vehicles. Investment is limited to accredited investors, though. This means all investors must have a net worth of at least $1 million (excluding the value of a primary residence) or income of at least $200,0000 each year for the past two (combined income of $300,000 for a married couple) with the expectation of the same income for the next year. Qualified purchasers, investors with at least $5 million, are also eligible to invest in these funds.
Services Offered by Balyasny Asset Management
The primary service Balyasny offers is portfolio management for its pooled investment vehicles. These are privately offered funds.
Balyasny Asset Management Investment Philosophy
The funds offered by Balyasny are all multi-strategy investment funds. There are four primary strategies used: fundamental long/short equity, macro, systematic trading and equity arbitrage. Market sectors used within the equities strategies include energy, healthcare, financial, industrials, information technology, consumer staples and consumer discretionary.
Fees Under Balyasny Asset Management
Fees are based on a percentage of assets under management (AUM). The exact rate each of the funds charges is confidential and generally not negotiable. Funds may also charge performance-based fees that are assessed at either a fixed rate of 20% or a tiered rate ranging from 10% to 30%.
However, performance-based fees may lead the firm to take on more risk while seeking higher returns. However, BAM has a fiduciary duty to act in clients' best interests.
What to Watch Out For
Balyasny has three disclosures listed on its record which can read about by accessing the firm's Form ADV.
Keep in mind that if you're looking for traditional investment management, Balyasny is not the place for you. It offers pooled investment vehicles to high-net-worth qualified investors.
Opening an Account With Balyasny Asset Management
To invest with BAM, you can fill out the firm’s contact form. You can also call the main office at (312) 499-2999.
All information is accurate as of the writing of this article.
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