BlueMountain Capital Management
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.
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.