Edgewood Management is a financial advisor firm located in New York City with roughly $25 billion in assets under management (AUM). The firm works with a mix of clients including individuals, investment companies, charities, corporations and retirement plans. Portfolio management services are the hallmark of Edgewood Management.
This is a fee-only firm, so all of its earnings come from advisory fees paid by clients. This differs from a fee-based operation, which can earn compensation from additional outlets, such as insurance and securities commissions.
Edgewood Management Background
Edgewood Management was founded in 1974. The firm is principally owned by Edgewood Management Company I, Inc., which in turn is principally owned by Alan Breed. Breed is also the president of this firm and one of its 11 advisors. Its advisory staff includes one certified public accountant (CPA) and one chartered financial analyst (CFA).
What Types of Clients Does Edgewood Management Accept?
Edgewood Management has nearly 1,200 clients. Half of these clients are individuals beneath the high-net-worth threshold, and the rest are split between high-net-worth individuals, investment companies, pooled investment vehicles, pension plans, charitable organizations, government entities and corporations.
Edgewood Management Minimum Account Sizes
For the most part, Edgewood Management requires a $5 million minimum account size to take advantage of its services. The firm reserves the right to waive or lower this minimum at its discretion.
Services Offered by Edgewood Management
Edgewood Management focuses its offerings around portfolio management services. Within this sphere, it concentrates primarily on portfolios of large-cap growth equities. What that means is that the firm typically invests client assets in a portfolio of stocks from companies with large market capitalizations.
Edgewood Management Investment Philosophy
Edgewood Management primarily invests in large-cap growth stocks. To be specific, the firm states in its Form ADV that most of its portfolios consist of shares from roughly 22 publicly traded companies. While this strategy inherently keeps diversification to a minimum, the portfolios are specifically designed to induce strong returns and lower risk over the long term.
In order to decide on which stocks to purchase, the firm performs fundamental analysis, which attempts to gauge the intrinsic value of a stock by examining things like financial documents and economic conditions. The firm typically holds stock positions for between three and five years, adopting a long-term approach that pays little attention to short-term fluctuations.
Fees Under Edgewood Management
Edgewood Management charges advisory fees as a percentage of your AUM. For clients in the firm’s Large-Cap or Balanced strategies, the firm charges a 1.00% annual fee. Wrap fee program clients will pay a non-negotiable rate that ranges from 0.50% to 0.75%. Fees will generally be paid on a quarterly basis, although this can vary from client to client.
What to Watch Out For
From time to time, Edgewood Management may enter into a performance-based fee arrangement with a client. According to the firm’s Form ADV, “Performance-based fee arrangements may create an incentive for Edgewood to recommend investments which may be riskier or more speculative than those which would be recommended under a different fee arrangement.” While this has the potential to create a conflict of interest, Edgewood is still bound by its fiduciary duty to always act in the best interests of its clients.
Another factor to consider is that Edgewood Management doesn’t offer financial planning services to its clients. So if financial planning is a must-have for you, you might want to find another advisor in your area.
Edgewood Management has no disclosures listed on its Form ADV, meaning it has a clean legal and regulatory record.
Opening an Account With Edgewood Management
Interested in working with Edgewood Management? You can contact the firm by sending an email to Questions@Edgewood.com or calling (212) 652-9123.
Where Is Edgewood Management Located?
Edgewood Management is headquartered in New York City at the intersection of 54th street and Madison Avenue. However, most investors won’t ever have a reason to visit the firm’s office in person.
- Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- If you find that the account minimums at many traditional advisors are above your head, you may be interested in a robo-advisor. Robo-advisors often have lower minimums and fees while also helping you reach your investment and retirement goals.