Bluepath Capital Management is a fee-only financial advisor firm that has $28 million in assets under management (AUM). It employs just one financial advisor. The firm is based in Atlanta, and it’s solely licensed to conduct business in the state of Georgia. Bluepath primarily serves individual investors without a high net worth.
Bluepath Capital Management Background
Bluepath Capital Management was established in 2016 by David Nicholas, who remains the firm’s principal owner. Nicholas got his start in the financial advisory industry in 2005, when he was just 19 years old. He is currently the only advisor working at Bluepath.
Bluepath Capital Management’s Affiliated Firm: Nicholas Wealth Management
Prior to founding Bluepath Capital Management, David Nicholas opened Nicholas Wealth Management in 2008. This firm provides similar services to Bluepath, including retirement income planning, asset protection, wealth accumulation, retirement account rollovers, estate planning, trust management and probate.
Although Nicholas Wealth Management is technically a separate entity from Bluepath Capital Management, all of its investment advisory services are offered through Bluepath. In other words, Bluepath’s proprietary investment research and expertise is what drives the majority of Nicholas Wealth Management’s offerings.
What Types of Clients Does Bluepath Capital Management Accept?
More than nine out of every 10 clients at Bluepath Capital Management are individuals without a high net worth. However, the firm also works with high-net-worth individuals and charitable organizations.
Bluepath Capital Management Minimum Account Size
Bluepath Capital Management does not institute any requirements regarding clients’ initial investments or minimum account sizes.
Services Offered by Bluepath Capital Management
For a relatively small firm, Bluepath Capital Management offers a number of services, most of which are related to portfolio management and financial planning. Its offerings include:
- Portfolio management
- Personal investment policy creation
- Risk tolerance determination
- Investment strategies
- Asset allocation
- Asset selection
- Regular portfolio monitoring and rebalances
- Third party investment management
- Financial planning
- Investment planning
- Retirement planning
- Tax minimization
- Life insurance and risk management
- College funding planning
- Debt/credit planning
- Specific investment type advice regarding:
- Mutual funds
- Exchange-traded funds (ETFs)
- Fixed income securities
- Real estate investment trusts (REITs)
- Hedge funds
- Private equity funds
- Inflation-linked bonds
- Non-U.S. securities
- Venture capital funds
- Private placements
Bluepath Capital Management Investment Philosophy
Bluepath Capital Management does not implement a singular investment strategy. Instead, it combines parts of six different strategies to meet clients’ unique needs. These six strategies include long-term trading, short-term trading, margin transactions, options transactions, short sales and the selection of other advisors.
Even though the firm is generally focused on the long term, it does engage in short-term strategies. This is usually done to increase a portfolio’s liquidity, which can be beneficial for clients who require cash at a moment’s notice.
Fees Under Bluepath Capital Management
Bluepath Capital Management has two distinct fee schedules: one for its wrap fee program and another for its non-wrap portfolio management service. The wrap fee program rolls all fees for the firm’s services and other additional charges into a single, holistic rate to simplify clients’ costs. Wrap fees are charged every month. The firm determines clients’ exact monthly fees based on the value of their assets under management on the last day of the previous month.
|Wrap Fee Programs|
|Total AUM||Annual Fee|
|Up to $500,000||2.00%|
|$500,001 - $1,000,000||1.85%|
|$1,000,001 - $2,000,000||1.50%|
While the annual rates for Bluepath’s non-wrap portfolio management services are lower, this rate does not include account transaction costs, trading costs and other miscellaneous charges like the wrap fee program does. Like the wrap fee program, all portfolio management fees are charged to clients’ accounts on a monthly basis.
|Non-Wrap Portfolio Management Fees|
|Total AUM||Annual Fee|
|Up to $500,000||1.50%|
|$500,001 - $1,000,000||1.25%|
|$1,000,001 - $2,000,000||1.00%|
Bluepath does charge performance-based fees for some client accounts. These clients are charged an annual fee of 1.00% of assets under management as well as a 20% performance fee based on capital appreciation. This fee only applies to any growth beyond what the firm calls your portfolio’s “high water mark.” This is defined as the highest value of your AUM at any given time. For example, if your account performs so well that it reaches a record high, you’ll be charged a 20% performance-based fee on the difference between your new and old high water mark.
The firm charges hourly fees for its financial planning services. Rates are negotiable and range between $250 to $1,000 per hour.
Check out the table below to see how Bluepath’s fees for its asset management services compare. Note that these fees are only estimates and actual costs may vary.
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
|Estimated Fee Comparison*|
|Your Assets||Bluepath Capital Management Non-Wrap Portfolio Management||National Median Advisory Fees**|
|$1MM||$13,750||$8,500 - $10,000|
|$5MM||$52,500||$25,000 - $32,500|
What to Watch Out For
Current and prospective clients should note that Bluepath Capital Management’s sole employee and advisor, founder David Nicholas, is also an insurance agent and a registered representative of a broker-dealer. In these capacities, Nicholas is eligible to earn extra compensation and commissions for the sale of specific securities and insurance policies. Although this represents a potential conflict of interest, the firm is a fiduciary, meaning it is legally bound to act in your best interest at all times.
It’s also worth noting Bluepath’s size. With just $28 million in AUM, Bluepath does not necessarily have access to the same resources that larger advisory firms do. On top of this, the firm is limited by the U.S. Securities and Exchange Commission (SEC) to conducting business solely in Georgia. If you’re not a Peach State resident, this likely isn’t the firm for you.
Bluepath Capital Management does not have any disclosures or other legal issues listed in its Form ADV.
Opening an Account With Bluepath Capital Management
Feel free to stop by Bluepath Capital Management’s office in Atlanta, Georgia, if you’re interested in working with the firm. If you can, though, first try to set up an appointment by calling (404) 890-5606 or sending an email to firstname.lastname@example.org.
Where Is Bluepath Capital Management Located?
Bluepath Capital Management’s one location is is in Atlanta, Georgia, at 2859 Paces Ferry Road, Suite 420.
Tips for Selecting a Financial Advisor
- Many people find it difficult to select a financial advisor they can trust, as there are so many certifications, services and other factors to take into account during your search. The SmartAsset financial advisor matching tool aims to make this process as simple as possible. Simply take the time to answer a few questions regarding your personal financial situation, and you’ll be paired with up to three advisors in your area who are equipped to handle your needs.
- Fiduciary is one of the most important terms within the financial advisor sphere. This title indicates that an advisor is bound, by law, to act in your best interest under all circumstances. All firms registered with the U.S. Securities and Exchange Commission (SEC) are bound by fiduciary duty.