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The London Company Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

The London Company of Virginia is a fee-only, privately-held investment management firm based in Richmond, Virginia. The firm's advisors manage billions of dollars in client assets, depsite having a moderately sized advisory team.

The firm mainly works with institutional clients, such as investment companies and retirement plans. However, through these relationships, the London Company has a number of institutional clients with and without a high net worth.

The London Company Background 

Established in 1994, The London Company is an independently owned registered investment advisor (RIA) founded by chartered financial analyst (CFA) Stephen M. Goddard. Goddard is also the firm’s director, CEO and chief investment officer (CIO). The firm’s chief focus is on managing domestic equities with a long-term orientation, according to its firm brochure. 

The firm’s team includes 10 CFAs and one certified public accountant (CPA). 

The London Company Client Types and Minimum Account Sizes 

The firm’s client base consists of individuals and high-net-worth individuals, pensions, foundations, Taft-Hartley plans, profit sharing plans, banks or thrift institutions, investment companies, trusts, estates and charitable organizations. 

The London Company imposes a minimum account size requirement of $10,000,000. 

Services Offered by The London Company

The firm provides asset management services through wrap fee programs and sub-advisory programs. Advisors also offer non-discretionary services through model portfolios. 

The London Company Investment Philosophy 

The London Company says it believes in active management and that its process is driven by fundamental research, according to its website. The firm offers a range of investment strategies through mutual funds and separately managed accounts (SMAs). These include its sub-advisory funds, Small Cap, Small-mid Cap, Large Cap, Income Equity, Mid Cap, Concentrated and All Cap 25 strategies. 

The firm says its investment process is driven by optimal diversification and a focus on cash return on capital. Its principles include the belief that the value of a company is decided by cash inflows and outflows discounted by the optimal cost of capital, according to its firm brochure. The London Company says it also seeks the following: consistent free cash flow generation, high return on capital, predictability and stability and conservative valuations. 

Fees Under The London Company 

For SMAs, clients pay asset-based fees which are payable quarterly in arrears, according to the quarter-end account value. Fees are based on a percentage of AUM, but differ according to strategy.

Here's a summarized breakdown of what percentage of assets you might pay in fees for SMA services at this firm:

The London Company Fee Schedule
Strategy Annual Fee Range
Concentrated Up to 1.00%
Income Equity 0.60% - 0.75%
Large Cap 0.60% - 0.75%
Mid Cap 0.50% - 0.75%
Small Cap Up to 1.00%
Small-Mid Cap 0.70% - 1.00%

The London Company also advises wrap fee accounts sponsored by other firms, for which clients pay a single fee to the program sponsor. The firm offers performance-based fee arrangements, with rates of 15% on the amount by which the net profit exceeds 6%. If you’re planning on investing with The London Company, your expenses may also include custodial fees, deferred sales charges, odd-lot differentials, transfer taxes and wire transfer and electronic fund fees. 

The London Company Awards and Recognition

In 2012, The London Company was named as one of the top 10 performing separate account managers by Pension and Investments, an international money management newspaper. On another listing in the same year, Pension and Investments recognized the firm as a top performing small cap blend manager. Lipper, a financial services company, also named the firm as a top manager in 2012. 

The firm was also recognized in 2016 when Touchstone Investments named it as its Sub-Advisor Of The Year.

More recently, in October 2020, its Income Equity strategy was awarded Active US Large Cap Strategy of the Year at the Pension Bridge Institutional Asset Management Awards.  Additionally, its Mid Cap strategy was among a select group of nominees for Active US Mid Cap Strategy of the Year.

What to Watch Out For

The London Company’s Form ADV doesn’t list any disclosures, according to its most recent SEC filing. 

The firm is mainly compensated through asset-based fees, but it also earns performance-based compensation. Its side-by-side management of asset-based accounts and performance-based accounts creates a potential conflict of interest because performance-based accounts charge higher fees. The firm has a fiduciary obligation to prioritize each client’s best interest.

All information was accurate as of the writing of this article.

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How Long $1mm 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.

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

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

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%. 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