Bayview Asset Management, LLC
Bayview Asset Management is an asset management firm with headquarters in Coral Gables, Florida, and branch offices in New York, London and Geneva. Specializing in mortgage and consumer credit investments, the advisor oversees nearly tens of billions in assets. It does this primarily through pooled investment vehicles, though it also manages separate accounts for certain clients. Generally speaking, to invest with Bayview Asset Management, you need to be an accredited investor or qualified purchaser, as defined by federal securities laws.
Bayview Asset Management Background
Bayview Asset Management was founded in 2008 in Coral Gables, Florida. The firm is principally owned by Bayview Asset Management Holdings, LLC, which is indirectly controlled by David Ertel. Ertel founded Bayview and has over 30 years of experience in the financial services industry.
The firm has many advisory employees. Across this group, there are a few professional advisory certifications, such as chartered financial analyst (CFA) and certified public accountant (CPA).
Bayview Asset Management Accept Client Types and Minimum Account Sizes
Bayview Asset Management’s client base is comprised of pooled investment vehicles, all of which are hedge funds, and a single investment company. As noted earlier, to invest in its funds, you must be an accredited investor or qualified purchaser.
Minimum investments vary depending on the fund and are stated in each fund's offering paperwork.
Services Offered by Bayview Asset Management
Bayview Asset Management offers discretionary investment management to private pooled investment vehicles and sub-advisor services to investment companies. The firm’s management of pooled investment vehicles can vary depending on the specific characteristics of the fund. Bayview does its own investment research and analysis and can provide an in-house loan-servicing platform.
Bayview Asset Management Investing Philosophy
Bayview Asset Management primarily invests in credit-related securities. For funds the firm calls Bayview Opportunity Funds (BOF), the firm typically (but not exclusively) invests in residential and commercial whole loans; agency, non-agency and commercial mortgage-backed securities; and other credit-sensitive financial instruments.
For mortgage security rights (MSR) funds, the firm looks to achieve strong returns while maintaining income and capital appreciation. For these funds, Bayview typically invests in mortgage security rights, investments in asset-backed securities, mortgage-related agency bonds, interest-only securities, inverse interest-only securities, agency and non-agency mortgage-backed securities and mortgage-related credit, real estate derivatives and real estate-backed residential and commercial loans.
Fees Under Bayview Asset Management
Bayview typically charges its funds an investment management fee. This is calculated on a quarterly basis and can range from 0.25% to 0.50% of the fund's net asset value at the beginning of the quarter. This translates to an annual fee of between 1.00% and 2.00%. These charges are typically paid in advance each quarter.
Additionally, private fund investors pay performance-based fees.
What to Watch Out For
Bayview Asset Management reported no disclosures of legal or regulatory action in its latest filings with the U.S. Securities & Exchange Commission.
A couple of things to note: as mentioned earlier, Bayview Asset Management receives performance-based fees, which may present a potential conflict of interest. Advisors may have the financial incentive to take a speculative trading approach or to favor certain funds over others for investment opportunities. Despite this, the firm is bound by a fiduciary duty to act in clients' best interests at all times.
Opening an Account With Bayview Asset Management
There are a few different ways you can get in touch with Bayview Asset Management. You can call the firm at (305) 854-8880, or you can send an email to ir@bayview.com.
All information is accurate as of the writing of this article.
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