Headquartered in Laguna Beach, California, WCM Investment Management, LLC is a fee-based firm with more than $42 billion in assets under management (AUM). The financial advisor provides services to a range of institutional clients, but it also serves individuals through separately managed accounts.
WCM Investment Management Background
WCM was founded in 1976 as an independent asset management firm. The advisor provides investment advisory services on a discretionary basis, and it specializes in equity investments. Its key owners are Sloane Payne, Peter Hunkel, Michael Trigg, Sanjay Ayer, David Brewer, Matt MacArthur, Duff Daniels, Bill Orke, and Andrew Wiechert.
The firm’s ownership is managed through Thalia Street Partners, a holding company.
WCM Investment Management Client Types and Minimum Account Sizes
WCM provides services to institutional clients, including pension and profit sharing plans, business entities, endowments, charitable organizations, foundations, trusts and public funds. It also offers advisory services to high-net-worth and non-high-net-worth individuals, mutual funds and private funds.
WCM generally requires a minimum account size of $10 million for separately managed accounts (SMAs). WCM Private Funds has a minimum of $5 million. The minimum for WCM Mutual Funds is $100 thousand for the Institutional Share Class and $1 thousand for the Investor Share Class. It may waive these, depending on client circumstances. For WCM funds, each fund’s private placement memorandum, prospectus or offering memorandum specifies the minimum investment requirements.
Services Offered by WCM Investment Management
WCM offers the following investment advisory services:
- Portfolio management
- Model portfolio recommendations for other advisors
WCM Investment Management Investment Philosophy
WCM says it bases its investment approach off four principles: differentiation, simplicity, culture and temperament. Through these principles the firm strives to achieve long-term, excess return. The advisor also strongly believes in employing multiple strategies to ensure the best investment results for its clients.
The firm uses a bottom-up, fundamental analysis approach that focuses on many factors, including competitive advantages, long-horizon growth prospects and valuation. In addition, structural differentiation, company culture, focused portfolio and temperament are four key elements that guide its investment strategies.
Fees Under WCM Investment Management
For separately managed accounts, WCM charges 1% of AUM, and clients must have a minimum account size of $10 million. The management fees are payable quarterly in advance, and the final fee is based on AUM on the last business day of each calendar quarter. The management fees and minimums are negotiable, and WCM may charge lower fees or waive minimums depending on certain client criteria, including: historical relationships, related accounts, anticipated future earning capacity or account composition.
WCM mutual funds pay management fees, shareholder service fees and other expenses. The exact fees are specified in each fund’s prospectus. Fees for private funds are also specified in each fund’s prospectus. The fee is payable quarterly, based on the net asset value of the capital account on the first day of each calendar quarter. Fees for the firm’s Canadian Fund, Australian Funds and UCITs are specified in each fund’s disclosure documents.
The firm may also charge performance-based fees.
What to Watch Out For
WCM Investment Management does not have any disclosures, according to its most recently filed Form ADV.
WCM offers advisory services to accounts that are charged an asset-based fee and accounts that are charged a performance-based fee. The firm acknowledges that this may incentivize advisors to prioritize the accounts through which they earn performance-based fees. But it employs preventative measures, such as order aggregation and trade rotation, in an effort to place clients’ interests first.
The firm is also fee-based, as certain advisors may receive compensation for selling financial products as a broker-dealer representative. This potential conflict of interest is mitigated by the firm's status as a fiduciary, which legally obligates it to act in your best interest at all times.
Opening an Account With WCM Investment Management
You’ll have a few options for getting in touch with WCM if you’re interested in opening an account. You can reach out to an advisor through the firm’s contact form, or you can visit or call the firm’s office at (949) 380-0200.
All information is accurate as of the writing of this article.
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