Based in Dayton, Ohio, Beacon Capital Management provides investment management services to various types of clients, from individuals to financial advisors. The firm’s investment team designs investment portfolios based on research from Nobel-Prize winning scholars and various investment strategies.
Beacon Capital Management landed on the Financial Times’ list of the top 300 registered investment advisors (RIAs) in 2019. The firm currently has more than $2.75 billion in assets under management (AUM).
Beacon Capital Management Background
James Christopher Cook founded Beacon Capital Management in 2000, after graduating from Bowling Green University with a bachelor’s degree in business administration. He holds multiple securities licenses with the Financial Industry Regulatory Authority (FINRA) and is the author of best-selling book “Slash Your Retirement Risk.”
Beacon Capital Management Client Types and Minimum Account Sizes
Beacon Capital Management serves individuals (including high-net-worth ones), pension and profit-sharing plans and business entities.
The firm imposes various minimum investment requirements for each of its model portfolios. These range from $5,000 to $25,000. That said, the firm may reduce or waive these minimums at its discretion.
Services Offered by Beacon Capital Management
Beacon Capital Management provides investment management advice through a variety of programs:
Investment Supervisory Services
Beacon Capital Management can build portfolios for clients based on their risk tolerance, time horizon, tax situation and other personal factors. The firm’s advisors would also monitor these portfolios and make certain adjustments if deemed suitable to help the client meet investment goals.
Investment Advisory Services
Beacon Capital Management can also serve as a co-advisor to clients referred to the firm by representatives of other RIA firms or broker-dealers. The firm provides these specific clients with access to one or more of the following portfolio models:
Beacon Vantage 1.0 Portfolio Strategy - designed for the long-term investor, this strategy invests primarily in small company stocks and value stocks through mutual funds and offers global exposure. There are aggressive, balanced and conservative models.
Beacon Vantage 2.0 Portfolio Strategy - aiming for consistent returns while avoiding significant losses, this strategy invests equally in stocks across 11 different market sectors. It also gives equal weight to long-term, intermediate-term and short-term fixed income holdings. A cash element can range from 1% to 5%, depending on risk tolerance.
Beacon Vantage 3.0 Portfolio Strategy: in addition to sharing objectives and asset allocations with Vantage 2.0, this strategy offers an alternative investment and bond model. The alternative portfolio aims for equal investment across currencies, commodities and private equity investment products. The bond portfolio offers exposure to extended duration, long-term, intermediate-term, inflation-protected and short-term fixed income holdings.
Also, Beacon Capital Management can provide its model portfolio strategies to separately managed accounts (SMA) and unified managed accounts (UMA) through platform providers such as Envestnet, Lockwood Advisors and Trust Company of America.
Pension Consulting Services
Beacon Capital Management offers consulting services to pensions, 401(k)s and profit-sharing plans. These services may include investment menu selection, investment monitoring and preparation of an investment policy statement (IPS).
Beacon Capital Management Investment Philosophy
Beacon Capital Management’s investment philosophy is driven by the following three principles:
- Maximize diversification through equal sector allocation.
- Minimize losses with mechanical investments.
- Maintain discipline to protect from emotion-led decision making.
The investment philosophies of various scholars also informs the firm's approach. For instance, the Beacon Vantage 1.0 Portfolio follows an asset-allocation strategy based on the work of Eugene Fama and Kenneth French.
Fees Under Beacon Capital Management
Clients receiving the firm’s investment supervisory services negotiate fees with their advisors. These fees may not exceed 1.80% of assets under management (AUM) annually, though there is a $400 minimum per year.
Investment advisory services fees follow this fee schedule:
|Average Daily Value of Client Account||Annual Fee %|
|40 - $499,999.99||0.55%|
|$500,000 - $999,999.99||0.35%|
|Minimum Annual Fee Charge||$400.00|
Beacon Capital Management negotiates separately managed Aaccount (SMA) fees with platform providers. These can be as high as 0.55% with an annual $400 floor.
For pension consulting services that include ongoing monitoring, the firm may charge an annual fee that ranges from 0.10% to 1.00% of plan assets under advisement, depending upon the size of the plan and the complexity of the services requested. When asset allocation services are included, this fee ranges from 0.85% to 1.80%.
Beacon Capital Management Awards and Recognition
As noted earlier, Beacon Capital Management ranked among the Financial Times' 300 Top Registered Investment Advisors in 2019. The list featured firms from across the United States. Judges analyzed applicants based on the following factors:
- AUM growth rate
- Years in existence
- Advanced industry credentials of the firm’s advisors
- Online accessibility
- Compliance records
What to Watch Out For
Beacon Capital Management focuses on investment management services. So if you want financial advice on other topics like estate planning or debt management and savings strategies, you may want to look elsewhere.
Beacon Capital Management had no legal or disciplinary matters in the past 10 years to report in its most recent SEC filings.
Tips for Finding the Right Financial Advisor
- Beacon Capital Management may not focus on individualized financial planning, but we can help you find a firm that does. Use our advisor matching tool. It links you with up to three different advisors in your area based on your individual needs.
- Fee structures can vary widely across advisors, and the difference can take a big chunk out of your balance. So make sure you know how prospective financial advisors get paid. Some work on a fee-only basis, which means they make money solely from clients. Other advisors may get a commission from vendors, in addition to the advisory fee they collect from clients, which may present potential conflicts of interest.
All information was accurate as of the writing of this article.