Gresham Investment Management
Headquartered in New York, Gresham Investment Management, LLC is a fee-only firm offering services to a range of institutional clients. The financial advisor currently advises fewer than 40 clients. The firm has more than $6.4 billion in assets under management (AUM).
Gresham doesn’t provide investment management for individual clients. SmartAsset’s free financial matching service can help you find a firm that does.
Gresham Investment Management Background
Founded in 2005 by The Falconwood Corporation, Gresham specializes in diversified commodity portfolios. The firm primarily advises private funds and separately managed accounts (SMAs), but it also provides sub-advisory services to investment companies. Gresham focuses on a number of strategies, including portfolios of commodities futures contracts, forward contracts, options on futures contracts, swaps and physical commodities.
The firm is also registered as a Commodity Trading Advisor and Commodity Pool Advisor with the U.S. Commodity Futures Trading Commission. Nuveen Investments, Inc. is the principal shareholder and majority managing member of Gresham.
What Types of Clients Does Gresham Investment Management Accept?
The firm’s clients include corporate pension funds, endowments, corporations, health systems, insurance companies, pooled investment vehicles, sovereign wealth funds, non-profit organizations and other advisors. The company has sovereign wealth funds in the Americas, Europe, Asia and the Middle East.
Gresham Investment Management Minimum Account Sizes
Gresham requires a minimum investment amount of $50 million to open an SMA. For commingled investment vehicles, the firm requires at least $100,000.
Services Offered by Gresham Investment Management
Gresham offers the following services:
- Portfolio management
- Discretionary trading authority
- Order placement
- Discretionary investing
- Selection of other advisors
Investment Philosophy
Gresham believes in offering its clients exposure to a broadly diverse selection of commodities and commodity groups. To increase client exposure, the firm also offers Diversified Commodities Portfolios (DCPs), physical commodities, commodity indices, natural resource equities and managed future funds.
The firm employs four key investment strategies to ensure risk-adjusted returns. These include flagship, enhanced commodities, managed futures and risk premia strategies. Gresham also utilizes several analytical investment methods when conducting research. It uses fundamental, technical, quantitative and “risks for all forms of analysis” methods.
Fees Under Gresham Investment Management
For SMAs and commingled funds, the firm bills clients quarterly or monthly in arrears. The fee is based on a percentage of AUM at the end of the calendar quarter. The firm also charges performance-based fees for certain commingled investment vehicles.
Gresham offers a range of fee schedules for its investment vehicles and SMAs. Rates for commingled funds generally range from 0.25% to 1.25%. SMA rates range from 0.15% to 0.75%.
What to Watch Out For
Gresham charges management fees based on a percentage of client AUM, but it also earns performance-based compensation for certain investment vehicles. This may create an incentive for advisors to favor accounts that earn performance based fees. To prevent transaction bias, the firm employs a trading system which it says leaves traders without discretion to favor performance-based accounts. The firm has a fiduciary duty, but prospective investors should still keep this in mind before opening an account.
Remember that this firm only provides investment management for institutional clients, so you may want to search for other advisors if you’re in need of individual account management. Our free financial advisor matching service can help you.
The firm also has several disclosures, which we’ll look further into below.
Disclosures
Gresham has six disclosures reported on its most recent Form ADV. Each disclosure involves the Teachers Insurance and Annuity Association of America (TIAA), one of the firm’s affiliates. A more recent disclosure was in 2016 when the New York Department of Financial Services found the affiliate in violation of numerous provisions in New York insurance law. TIAA paid a fine of $18,112.
Opening an Account With Gresham Investment Management
If you’d like to invest with Gresham, you’ll have a few options for getting in touch. You can contact the firm’s investor relations email address, or you can visit its office. You can also set up an appointment with an advisor by calling the firm at (212) 984-1430.
Where is Gresham Investment Management Located?
Gresham’s office is located on the seventh floor at 257 Park Avenue South in New York, New York.
Tips for Investment
- Interested in finding an advisor that best suits your financial situation? Whether its financial, retirement or estate planning guidance you seek, you don’t want just any professional. You want one that can offer a holistic and structured approach to helping you meet your savings goals. Consider our list of questions to ask a financial advisor before you make your decision.
- If you’d like help narrowing down your search, SmartAsset’s free financial advisor matching tool pairs you with up to three local advisors within five minutes.
All information was accurate as of the writing of this article.
