Moore Capital Management Review
Moore Capital Management is a financial advisor firm headquartered in New York City that manages just over $34 billion in client assets. The firm’s client base is made up entirely of pooled investment vehicles. That means that individuals seeking investment management or financial planning services will need to look elsewhere. SmartAsset’s advisor matching tool can set you up with one in your area.
Moore Capital Management is a fee-only firm, meaning it earns income exclusively from the fees that its clients pay. By contrast, a fee-based firm would also earn compensation from insurance sales, security transactions or other outside sources.
Moore Capital Management Background
Moore Capital Management was founded in 1989 in New York City. It is principally owned, albeit indirectly, by Louis Moore Bacon, who also serves as chairman and CEO of the firm. In addition to its primary office in New York, the firm also has locations in London and Hong Kong.
The firm has 143 advisory employees on staff between its three locations. Some of these advisors hold professional advisory certifications, such as chartered financial analyst (CFA).
What Types of Clients Does Moore Capital Management Accept?
Moore Capital Management’s client base is comprised solely of seven privately offered investment funds, which are sponsored by either the firm or one of its affiliates. So although the firm itself doesn’t currently advise any individuals, the aforementioned funds have individual investors, along with trusts, pension plans, charitable organizations and businesses.
Moore Capital Management Minimum Account Sizes
Since Moore Capital Management works only with investment funds, it doesn’t have a standard minimum account size. For the funds that are offered to investors, though, a minimum investment of $1 million is generally required.
Services Offered by Moore Capital Management
Moore Capital Management offers discretionary investment management to privately offered investment funds, which are sponsored by the firm’s parent company, Moore Group. A few of these funds are managed according to the firm’s various investment strategies, while some are invested solely in other funds. Moore Capital Management doesn’t offer financial planning services in any form.
Moore Capital Management Investment Philosophy
Moore Capital Management primarily uses two strategies when managing investments. The first, Global Macro, seeks to achieve consistently high returns while also mitigating risk. This strategy sticks to investments in foreign exchanges, government and corporate bonds, interest rate instruments, equity securities, stock indexes, precious metals and traditional and base industrial commodities. The firm occasionally invests in futures and options as well.
The Macro Managers strategy invests in a similar range of securities as the first, but does so in a slightly different way. Global Macro depends heavily on directional positioning, which is the practice of purchasing a long position if you expect the market or security price to rise or buying a short position if you expect it to fall. Macro Managers depends less on this practice.
Fees Under Moore Capital Management
Moore Capital Management typically charges its clients a management fee based on the net assets of the fund, though it does not adhere to a specific fee schedule. For most funds, fees are generally paid monthly in arrears, with rates generally translating to a 2.00% to 3.00% annualized fee.
In addition to these management fees, the funds pays brokerage commissions on securities transactions. Some funds may also pay a profit share allocation, which is defined as a percentage of the growth in a fund’s net assets over a certain period. This is a type of performance-based fee.
What to Watch Out For
As a firm, Moore Capital Management does not offer financial planning services or work with individual clients. So if you’re an individual or are on the lookout for financial planning, this firm won’t be able to meet your needs.
Moore Capital Management has one disclosure to its name. It’s in reference to a 2010 allegation levied by the Commodity Futures Trading Commission which states that one of the firm’s former employees attempted to manipulate settlement prices of certain commodity futures contracts. According to the firm’s Form ADV, the Commission also states that Moore failed to put in place a system to “detect and deter potentially manipulative practices.”
As a result, the firm paid a $25 million fine and was barred from trading in these markets during the last 15 minutes of the trading day for two years.
Opening an Account With Moore Capital Management
As things currently stand, you need to be a private investment fund sponsored by Moore or one of its affiliates in order to receive its asset management services.
Where Is Moore Capital Management Located?
Moore Capital Management is headquartered in Times Square in New York City, on the southeast corner of 42nd Street and 8th Avenue. In addition to this office, the firm also has locations in two other global financial hubs: London and Hong Kong.
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