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Balyasny Asset Management L.P. Review - SmartAsset

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Balyasny Asset Management L.P.

One unique fact about Balyasny Asset Management L.P. (BAM) is that it only provides investment advisory services for pooled investment vehicles.

BAM is a fee-only firm in Chicago, Illinois. It has more than $118 billion in assets under management, all in pooled investment vehicles. It does not offer traditional asset management, where an investor takes a client’s money and puts 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.

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 founded in the firm and still owns more than 75%. He is the only principal owner. 

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, they take money into their 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 salary for the next year.

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 five primary strategies used: fundamental long/short equity, equity trading, quantitative systemic strategies, global macro (including commodities and futures-based strategies) and credit. Market sectors used within the equities strategies include energy, healthcare, financial/insurance, industrial, technology, media, telecommunications, consumer staples, consumer discretionary and merger arbitrage/events.

Balyasny Asset Management Fees

Fees are based on a percentage of assets under management. The exact rate each of the funds charges is confidential and generally not negotiable. According to a 2018 study of 1,500 firms by RIA in a Box, the average financial advisor's investment advisory fee is 0.95% of AUM.

What to Watch Out For

Balyasny only has one disclosure listed on its record. In 2019, one of the firm's private funds made a late submission for the notice filing of its first sale of securities in New Hampshire. The matter was resolved with a $2,500 fine.

If you are 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 artcle.

Tips for Investment

  • While BAM doesn’t offer traditional investment advisory services, plenty of advisors do. Finding the right financial advisor doesn’t have to be hard, though. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors, get started now.
  • If you are investing by yourself, it can be helpful to know what an investment might look like in the future given a standard rate of growth. See what your investments could grow to using our investment calculator.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research