CIFC Asset Management, LLC is a financial advisor firm in New York City that has $20.6 billion in assets under management (AUM) and 34 advisors working in its offices. The firm deals entirely within the realm of institutional investment management - that is, it does not work with any individual clients. If you’re an individual looking for a financial advisor, try out SmartAsset’s free matching tool.
As a fee-only firm, CIFC Asset Management earns compensation solely from the advisory fees that clients pay for its services. This differs from a fee-based firm, which earns additional compensation from outside sources like include insurance or securities commissions. By avoiding commission-based compensation, a fee-only firm avoids many conflicts of interest.
CIFC Asset Management Background
CIFC Asset Management is part of CIFC Corp.’s group of financial services companies. The firm was founded in 2005. Today, it is under the leadership of CEO and chief investment officer Stephen Vaccaro and chief operating officer (COO) John DiRocco.
The more than 30-person advisory team at CIFC Asset Management boasts a significant number of certifications, including eight chartered financial analysts (CFAs) and three certified public accountants (CPAs).
What Types of Clients Does CIFC Asset Management Accept?
The primary clients of CIFC Asset Management are collateralized loan obligation (CLO) funds, private investment funds and investors in corporate and structured credit. CIFC also manages accounts for a handful of insurance companies, pension and profit-sharing plans and banks.
CIFC Asset Management Minimum Account Size
CIFC Asset Management doesn’t explicitly require any minimum initial investments or minimum account sizes.
Services Offered by CIFC Asset Management
CIFC Asset Management’s hallmark service is discretionary investment management. In order to do this, the firm’s team of advisors complete original research and assessments of various investment opportunities and markets. These advisors also focus on strong diversification to avoid security imbalances, and engage in active portfolio management and continuous rebalancing and strategy reassessment.
CIFC Asset Management Investment Philosophy
CIFC Asset Management utilizes a fundamentals-based approach to investing. This ideology is centered around a combination of relative value trading and constant rebalances. By maintaining this approach over time, the firm will learn about various gaps on the levels of both markets and securities, which it can then use to leverage for stronger returns.
Fees Under CIFC Asset Management
Although CIFC Asset Management does not release specific fee rates for its services, it does state that fees are negotiable on a client to client basis. Some of the types of fees it charges include senior management fees, subordinated management fees and performance-based fees.
In general, CIFC charges its fees each quarter based on the total amount of AUM that a fund or client has invested. The only exception to this is performance-based fees, as they are only charged when a specific performance benchmark is hit.
What to Watch Out For
Certain clients at CIFC Asset Management will have performance-based fees included in their fee schedule. Based on information in CIFC’s Form ADV, the firm states that its advisors “may have an incentive to favor (client accounts) that (are) also charged a performance incentive fee.” While this represents a potential conflict of interest, the firm is bound by fiduciary duty to act in your best interest no matter what.
CIFC Asset Management has one disclosure listed on its Form ADV. However, this lone disclosure belongs to Deerfield Capital Corp. Deerfield is no longer in existence, but it was one of the predecessor firms to CIFC Asset Management. Therefore, the firm does not have any disclosures directly attributed to it.
Opening an Account With CIFC Asset Management
The best way to get in touch with CIFC Asset Management is by phone at (212) 624-1200.
Where Is CIFC Asset Management Located?
The U.S. headquarters for CIFC Asset Management is in New York City at 250 Park Avenue on the fourth floor, just north of Grand Central Terminal and the MetLife Building. Other than that, the firm operates a secondary office in London, U.K. at 27 Knightsbridge on the sixth floor.
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