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Orbis Investment Management Review

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Orbis Investment Management Review

Orbis Investment Management (U.S.), LLC

Orbis Investment Management (U.S.), LLC is a hedge fund manager that employs eight financial advisors who manage the $109 million under its care. The firm is part of the Orbis Group of financial companies, so its assets under management (AUM) belong to Orbis Group’s collective $33 billion in AUM. Orbis Investment Management is based out of San Francisco, though its parent company operates offices in seven other countries.

As a fee-only firm, Orbis Investment Management (U.S.) earns compensation solely from the fees that clients pay. Fee-based firms, on the other hand, would generate income from both client-paid fees and outside sources, like securities commissions.

Orbis Investment Management Background

Orbis Investment Management is the U.S. arm of Orbis Group, an investment company that has 10 total advisory offices around the globe. Orbis has been in business since 2007, though Orbis Group can trace its history back all the way to 1989. Orbis’ Allan Gray founded Orbis Group, and remains the ultimate owner of it and Orbis Investment Management through his charitable trust, the Allan & Gill Gray Philanthropy Trust.

What Types of Clients Does Orbis Investment Management Accept?

Orbis Investment Management is a hedge fund, so technically speaking, its only client is the Orbis Institutional U.S. Equity Fund that it oversees. However, this hedge fund is naturally available for investment, though Orbis purposely affords these opportunities solely to accredited investors. You qualify as an accredited investor if you have:

  • An individual or joint (with a spouse) net worth of $1 million, excluding the value of a primary residence
  • Individual income totaling at least $200,000 ($300,000 in combination with a spouse) during each of the last two calendar quarters
    • Must provide a reasonable expectation that these income levels are maintainable

Various institutional clients also invest in the Orbis Institutional U.S. Equity Fund.

Orbis Investment Management Minimum Account Size

Although there is no minimum necessary to invest with Orbis, its hedge fund requires a variable minimum investment depending on the class you’re investing in:

  • Base Refundable Reserve Fee Class: $5 million ($1 million for investors associated with Orbis)
  • Zero Base Refundable Reserve Fee Class: $100 million
  • Core Refundable Reserve Fee Class: $20 million

Services Offered by Orbis Investment Management

Orbis Investment Management principally manages the Orbis Institutional U.S. Equity Fund according to the specific investment objectives and restrictions that the hedge fund adheres to. The firm also offers its U.S. equity recommendations Orbis Investment Management Limited, another company in the Orbis Group.

Orbis Investment Management Investment Philosophy

In general, Orbis Investment Management tries to achieve long-term returns through an active management philosophy. The firm understands that this type of approach may result in higher levels of volatility, but it maintains that this is a natural step in any long-term investing process.

As the name of its hedge fund indicates, Orbis sticks to equity securities within the U.S. stock market. In an attempt to mitigate risk and volatility, Orbis looks to invest in companies that its proprietary research uncovers as undervalued by the larger market.

Fees Under Orbis Investment Management

The base fee you’ll pay to invest in Orbis’ Institutional U.S. Equity Fund can vary from 0.30% to 0.60% depending on the fee class you subscribe to and the performance of the hedge fund. On the other hand, Orbis Investment Management receives a management fee from the fund that ranges from 0% to 7%, with the exact rate chosen based on the fund’s overall return levels. There are performance-based fees as well.

What to Watch Out For

As a hedge fund, Orbis Investment Management is not a traditional financial advisor firm that offers financial planning services. Additionally, the firm does not work directly with individuals. So if you’re an individual looking for a financial plan, try SmartAsset’s matching tool to find appropriate advisors in your area.

Orbis includes performance-based fees in its fee schedule. These charges typically only come into play if the performance of its investments outpace a preset benchmark. Performance-based fees are generally regarded as a potential conflict of interest, as they can incentivize managers to take risks in pursuit of greater returns. However, Orbis Investment Management abides by fiduciary duty, which legally binds it to act in clients’ best interests at all times.

Disclosures

According to its SEC-filed Form ADV, Orbis Investment Management doesn’t have any disclosures on its legal and regulatory record.

Opening an Account With Orbis Investment Management

The best ways to get in touch with Orbis Investment Management is to either email the firm at clientservice@orbis.com or call (415) 489-3600. If you decide to speak over the phone, reach out to the firm’s two U.S. contacts, Marley Kornreich and Seema Dala.

Orbis Investment Management is based out of San Francisco at 600 Montgomery Street, Suite 3800. Orbis Group also has branches in Vancouver, Canada; Hamilton, Bermuda; London, U.K.; Luxembourg; Tokyo, Japan; Hong Kong, China; and Sydney and Melbourne, Australia.

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How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research