Shenkman Capital Management, Inc. is a privately-owned and independent company headquartered in New York City. The financial advisor operates as a fee-only firm serving both individual and institutional clients in its New York, Stamford, Connecticut and London, U.K. offices.
Shenkman Capital Management Inc. Background
Shenkman was established in 1985 by firm founder, president and co-chief investment officer (CIO) Mark R. Shenkman. Justin W. Slatky serves as the firm’s executive vice president and co-CIO. The registered investment advisor (RIA) is also under common control with Romark Credit Advisors, L.P. (RCA) and Romark CLO Advisors LLC.
Shenkman Capital Management Inc. Client Types and Minimum Account Sizes
The firm advises individuals and high-net-worth individuals, public pension plans, corporations, Taft-Hartley plans, religious and charitable organizations, endowments and foundations, mutual funds, insurance companies, wrap fee programs, government entities and other pooled investment vehicles.
Shenkman Capital’s firm brochure doesn’t specify a minimum account size requirement.
Services Offered by Shenkman Capital Management Inc.
Shenkman Capital provides the following advisory services:
- Portfolio management
- Publication of periodicals or newsletters
First Trust Advisors Investment Philosophy
Shenkman Capital’s approach for earning high risk-adjusted returns is to preserve capital under all market conditions and to maximize compound interest income through a disciplined process supported by comprehensive, fundamental analysis, according to its website. The firm also says it strives to minimize defaults and utilize proprietary credit analytics.
Shenkman Capital mainly relies on fundamental credit analysis and broad diversification when making investment decisions, but advisors also employ traditional credit and alternative credit investment strategies. These generally range from senior secured loans and high yield bonds to collaterized loan obligation (CLO) debt and equity and absolute return strategies.
Fees Under Shenkman Capital Management Inc.
Shenkman Capital mainly receives its compensation through asset-based, performance-based and service-based fees. The firm’s asset-based management fees range from 0.0% to 1.5%, depending on the investment vehicle used and the strategy employed. The firm says it negotiates fee arrangements with separately managed account (SMA) clients and investors in its Sponsored Funds.
Shenkman Capital’s performance fees range from 0.000% to 20.000% of returns. The firm has an Intercompany Services Agreement with RCA which allows it to earn service-based fees for providing credit research and analysis and financial services to RCA.
What to Watch Out For
Shenkman Capital honors a fiduciary duty to work in each client’s best interest, but the firm acknowledges that its asset-based and performance-based fee arrangements can create conflicts of interest. Advisors may favor performance-based accounts that earn them higher management fees, neglecting a client who may benefit from a perhaps more suitable and less expensive investment.
Shenkman Capital doesn’t have any disclosures.
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All information was accurate as of the writing of this article.