Select Equity Group, L.P. is a financial advisor firm that manages more than $23 billion in client assets. The firm is based out of New York City and works with many different types of clients, including individuals, charitable organizations, businesses and other investment advisors.
This is a fee-only firm, so 100% of its earnings come from advisory fees that clients pay. This is in contrast to a fee-based firm, which may have conflicts of interest due to receiving compensation from outside sources like insurance or securities commissions.
Select Equity Group Background
Select Equity Group was founded in 1990 by current chairman and CEO George Loening. The firm has operated as a limited partnership since 2013 after a merger with its affiliate, Select Offshore Advisors, LLC, an investment advisory firm. Select Equity is employee-owned, but Loening is the principal owner.
The firm employs 52 advisors, several of whom have earned the chartered financial analyst (CFA) designation.
What Types of Clients Does Select Equity Group Accept?
While the vast majority of Select Equity Group's client base is made up of individuals (both with and without and high net worth), it also maintains relationships with many other institutional and advisory clients. These include estates, trusts, banking institutions, pooled investment vehicles, other investment companies and advisors, pensions and other retirement plans, charitable organizations, government entities, insurance companies and corporations.
Select Equity Group Minimum Account Sizes
Select Equity Group offers multiple investment strategies to its clients, and with these strategies come varying minimum account sizes. These requirements range from $100,000 all the way up to $5 million.
Services Offered by Select Equity Group
The flagship offering at Select Equity Group is its investment management service. This takes the shape of both investment portfolio design and management, usually according to one of the firm’s nine investment strategies:
- Small-Mid-Cap Strategy/Long-Only
- U.S. Core Strategy
- Concentrated Opportunistic Strategy
- U.S. Long/Short Strategy
- International Long/Short Strategy
- International Long-Only Strategy
- Private Equity Strategy
- International Long-Only Large-Cap Strategy
- Global Long-Only Large-Cap Strategy
Additionally, the firm acts as a sub-advisor for certain mutual funds.
Select Equity Group Investment Philosophy
Generally speaking, Select Equity Group doesn’t focus on attempts to time the market or predict economic trends. Instead, the firm attempts to identify investments that it believes the market is currently undervaluing. The firm uses fundamental analysis as the backbone of this identification pursuit.
Fundamental analysis involves researching a company’s “fundamentals," which might include examining its financial documents and management history and considering the current macroeconomic environment. The firm uses this information to develop an idea of the company’s intrinsic value, which it can then compare to its stock price to determine if the market is undervaluing it.
Select Equity Group maintains nine different investment strategies, with perhaps the most prominent being the Small-Mid Capitalization/Long-Only strategy. All of these strategies primarily involve individual equity investments. However, the firm may invest portions of each client portfolio in some sort of cash element, such as money market reserves.
Fees Under Select Equity Group
Select Equity Group charges advisory fees according to a number of different schedules that can vary depending on the type of client, the size of their account and the investment strategy governing their account. For individual clients utilizing the Small-Mid Capitalization/Long-Only strategy, the firm will usually charge an annual fee of up to 2.00% of their AUM, divided quarterly. Certain Private Fund clients also pay up to a 2.00% management fee, although this rate represents a portion of their account's net asset value (NAV).
What to Watch Out For
Select Equity Group’s advisory services do not include financial planning, as the firm exclusively offers investment management. If consulting with a financial planner is a must for you, try our financial advisor matching tool to find suitable options in your area.
Additionally, Select Equity may receive performance-based compensation in relation to certain Private Fund and individual accounts. According to the firm's Form ADV, this may create an incentive for the firm to choose riskier or more speculative investments when managing accounts that have this arrangement, regardless of the risk tolerance of the client. However, the firm is still bound by its fiduciary duty to act in the best interests of clients at all times.
Select Equity Group has no disclosures on its legal and regulatory record.
Opening an Account With Select Equity Group
If working with Select Equity Group interests you, there are a few ways to get the ball rolling. You can give the firm’s office a call at (212) 475-8335, or you can shoot them an email at firstname.lastname@example.org. If you’re in the neighborhood, you can also visit the firm’s office in lower Manhattan.
Where Is Select Equity Group Located?
Select Equity Group is headquartered in New York City on the northeast corner of Lafayette Street and Great Jones Street, just a few blocks south of Astor Place.
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