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BlueMountain Capital Management Review

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BlueMountain Capital Management, LLC

BlueMountain Capital Management is an investment advisory firm that advises pooled investment vehicles primarily on behalf of institutional clients. So it doesn't extend its services to individuals. For an advisor who works with individual clients, use our financial advisor matching tool to find up to three near you.  

BlueMountain Capital Management Background

Andrew Feldstein and Stephen Siderow founded BlueMountain in 2003. Today, the firm is a registered investment advisor (RIA) overseeing more than $30 billion in assets under management (AUM). Its more than 100 employees are in New York City and London. 

Feldstein, the firm’s current CEO, started the firm following more than a decade at J.P. Morgan. He served in several leadership roles there, including head of structured credit; head of high yield sales, trading and research; and head of the bank’s global credit portfolio. 

What Types of Clients Does BlueMountain Capital Management Accept?

BlueMountain provides investment advisory services to private investment funds and institutional accounts typically operating as limited partnerships or foreign companies. 

BlueMountain Capital Management Minimum Account Size

Blue Mountains account minimums vary across different client types. The firm generally requires a minimum account size of $1 million to work with private fund clients. Meanwhile, the general minimum investment for investors in special purpose vehicles for collateralized loan obligations (CLOs) is $250,000. 

The minimum investment for institutional accounts depends on several factors such as the types of financial instruments involved in the account, the strategies utilized and the vehicle’s time horizon. 

Services Offered by BlueMountain Capital Management 

BlueMountain provides investment management services to pooled investment vehicles generally functioning as private investment funds. In offering these services, the firm generally works with an affiliate serving as general partner. Investments into these funds are made through a master-feeder structure. 

Its institutional accounts are typically managed as limited partnerships with a BlueMountain affiliate serving as general partner or as foreign companies in which the majority of their boards of directors are composed of BlueMountain personnel. 

BlueMountain Capital Management Investment Philosophy

BlueMountain employs a multi-strategy approach to investing. The one that applies to each client would be detailed in a confidential private placement memorandum. That said, the firm generally engages in one or more of the following strategies:

Fundamental research - evaluating the current financial health of a company by examining its financial records and other sources in order to make projections about its future status 

Quantitative analysis - studying past and present market conditions to determine future price movements 

Technical analysis - understanding the technical dynamics of different credit, fixed income, equity and volatility markets. 

Fees Under BlueMountain Capital Management 

BlueMountain generally charges its fund clients a monthly management fee that can span from an annual 1% to 2% of the net assets in the fund.  

The firm typically charges CLO clients a management fee composed of two parts. One is a senior investment management fee usually representing an annual 0.15% to 0.20% of net assets. The other is a subordinate investment management fee usually equal to 0.35% of net assets. These are typically payable quarterly in arrears. 

The firm states that in regard to CLO clients, “The net assets of a CLO generally include the aggregate value of the CLO’s collateral plus available cash. The management fee is paid from interest revenue, which is segregated from other CLO cash at the time of such management fee payment.”

Fees charged to advisory clients vary and are described in the private placement memorandum the firm signs with a particular institutional client. 

However, BlueMountain’s investment advisory fees don’t account for additional expenses that may be exclusive to each particular client. These may include additional charges such as commissions, clearing fees and more. 

What to Watch Out For

BlueMountain does not work with small investors. It also doesn’t provide financial planning or wealth management. If you are looking for an advisor who offers these services, use our pro matching tool to find up to three advisors in your area. 

Disclosures

In 2014, the Financial Supervisory Authority of Norway (FSA) charged BlueMountain with a violation relating to the late notification of a purchase of a Norwegian-listed stock, which brought holdings of this stock in BlueMountain-advised funds to 20.06% of shares outstanding. This move breached the reporting threshold of 20%, as described in the Norway Securities Trading Act (NSTA). Following the FSA’s findings and charge in 2015, Blue Mountain paid a $24,198 penalty fee to the Norwegian Treasury. 

Opening an Account With BlueMountain Capital Management 

Potential clients can establish a relationship with BlueMountain by visiting its official website at http://www.bluemountaincapital.com/ or by calling the firm at 212-905-3900. 

Where Is BlueMountain Capital Management Located?

BlueMountain is based at 280 Park Avenue, 12th Floor, New York, New York 10017.

Tips on Finding the Right Financial Advisor

  • Don’t have millions to invest? Use our SmartAsset matching tool to find a suitable advisor. It links you with up to three in your area. You can also review their qualifications before deciding to work with one. 
  • Know that not all advisors follow the same standards. Those registered with the Securities and Exchange Commission (SEC), for example, serve as fiduciaries and must work in the best interests of the clients or face severe penalties. So it’s important to research the individual advisors and firms you are considering. You should also keep an eye out for notable designations such as certified financial planners (CFPs).

All information was accurate as of the writing of this article.

 

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.

Least
Most
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