Belle Haven Investments is a financial advisor firm headquartered just north of New York City that serves more than 8,800 clients. Rather than offer its services directly to these clients, the firm works with other firms and institutions through subadvisory relationships. Founded in 1982, the firm has grown to manage $8 billion in investable assets through these relationships. Belle Haven's premier service is fixed-income management.
All of Belle Haven's income comes from the fees that clients pay, which makes it a fee-only firm. This is markedly different from the setup of a fee-based firm, which is one that earns third-party forms of compensation (like insurance commissions) in addition to the fees that clients pay.
Belle Haven Investments Background
Belle Haven Investments was founded in 1982, and it is principally owned by Matt Dalton, who also acts as the firm’s CEO and chief investment officer (CIO). Dalton has worked in finance, and specifically in fixed income, since 1985. The firm has 31 advisors on staff.
Belle Haven Investments Client Types and Minimum Account Sizes
Belle Haven Investments works with almost 9,000 clients, though these clients use Belle Haven's services through their relationship with an affiliated firm. This client base is extremely diverse, including the likes of non-high-net-worth and high-net-worth individuals, banks, investment companies, pooled investment vehicles, pension plans, charitable organizations, government entities, insurance companies and corporations.
Should you want access to Belle Haven's separately managed accounts (SMAs), you'll need at least $250,000 in investable assets. Otherwise, the company runs a private investment fund called the Belle Haven Aggressive Muni Fund, L.P., or BHAM. The minimum needed to invest in this fund is $1 million.
Services Offered by Belle Haven Investments
Belle Haven Investments specializes in providing investment strategies centered around fixed-income securities. These strategies then get implemented within various in-house separately managed accounts. Most of the time, other advisors will select from these investment strategies and use them with their clients, although there are still some clients for whom Belle Haven acts as the primary advisor. The firm also acts as the investment advisor to BHAM and an open-end investment company.
Belle Haven Investments Investment Philosophy
Belle Haven Investments approaches the investment process a bit differently than many other financial advisor firms, as it focuses exclusively on fixed-income instruments. As such, the firm looks to construct portfolios of bonds with duration and creditworthiness that align with each client's investment goals and risk tolerance. Furthermore, the firm explicitly states in its Form ADV that it looks to "position portfolios to capture opportunistic trades."
As the client's portfolio ages, the firm will continuously monitor its returns to determine its current setup is still working. Based on this analysis, the firm may buy or sell securities as needed.
Fees Under Belle Haven Investments
When acting as a sub-advisor to SMAs, Belle Haven Investments charges a fee based on a percentage of the client's total assets under management (AUM). That exact percentage typically ranges between 0.50% and 1.00%, though specific fees rates depend on the investment strategy that's ultimately employed. However, these rates may change, as all client-advisor relationships are technically negotiable.
To invest in the BHAM fund for which Belle Haven acts as investment advisor, you can expect to pay 0.3125% on a quarterly basis. That works out to an annual fee rate of 1.25%.
Belle Haven Investments has two disclosures listed on its Form ADV. One applies to a violation from 2009, when the Municipal Securities Rulemaking Board (MSRB) ruled that the firm failed to report information regarding purchase and sale transactions in a timely manner. For this, the firm paid a fine without admitting or denying the findings. Then, in 2015, the Financial Industry Regulatory Authority (FINRA) alleged a similar violation, and the firm also paid a fine without admitting or denying the allegation.
Opening an Account With Belle Haven Investments
If you’d like to start a relationship with someone at Belle Haven Investments, the easiest way is probably to call the firm at (914) 694-2616. If you prefer, you can also visit the firm’s website and fill out the contact form with your name, contact info and a message describing what kind of information you want.
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