Edgewood Management is a financial advisor firm located in New York City. With roughly $34 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 collects transaction-based fees from third parties as well as client fees.
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).
Edgewood Management Client Types and Minimum Accout Sizes
Edgewood Management has nearly 1,200 clients. Half of these clients are individuals who do not have high net worths, and the rest are a mix of high-net-worth individuals, investment companies, pooled investment vehicles, pension plans, charitable organizations, government entities and corporations.
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 primarily offers portfolio management services with a focus on portfolios of large-cap growth equities. What that means is that the firm typically invests client assets in stocks from companies with large market capitalizations.
Edgewood Management Investing 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 seeks to gauge the intrinsic value of a stock by examining things like financial documents and economic conditions. The firm typically holds stock positions for three to 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.
Here is a chart showing what you would pay at Edgewood for its large-cap and balanced strategies, based on your account level.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Edgewood Management*|
|Your Assets||Annual Fee Amount|
Edgewood's investment management fee rate is slightly higher than the industry average of 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Learn more about what advisors typically cost here.
What to Watch Out For
A couple things worth noting: 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 bound by its fiduciary duty to always act in the best interests of its clients.
Also, Edgewood Management doesn’t offer financial planning services. So if financial planning is a must-have for you, you'll want to find another advisor in your area.
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.
All information is accurate as of the writing of this article.
- Don't go it alone. Use SmartAsset’s free matching tool to find the right financial advisor for you. It will connect you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors, 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.