Ritholtz Wealth Management specializes in portfolio management for individuals and institutions with a relatively high amount of investable assets. The firm has 18 advisors on staff and more than $1 billion in assets under management (AUM). Ritholtz is headquartered in New York City, and it offers a goals-based approach to portfolio management.
All information included in this profile is accurate as of November 26th, 2019. For more information, please consult Ritholz Wealth Managementâs website.
|Assets under management: $1,003,981,435|
|Minimum investment: $750,000|
|Fee structure: Percentage of AUM, ranging from 1.25% to 0.35%, depending on portfolio size|
|Headquarters:||24 West 40th Street, 15th floor
New York NY, 10018
Ritholtz Wealth Management has been a registered investment advisor (RIA) since 2013. The firm has its headquarters in New York City and additional offices in California, Michigan, Illinois, Oregon, New York and Florida.
Ritholtz has 24 employees on staff, 18 of whom perform investment advisory functions. A number of directors at the firm hold advanced credentials, including the certified financial planner (CFP) and chartered financial analyst (CFA) designations.
The firmâs co-founders are well-known financial advisors with long-time followings in the industry. Barry Ritholtz, who currently serves as the firmâs chairman and chief investment officer, is the author of the financial blog âThe Big Pictureâ and the host of Bloombergâs âMasters in Businessâ podcast. Josh Brown, the firmâs CEO, is the author of the blog âThe Reformed Brokerâ and the host of CNBCâs âThe Halftime Report.â
In general, Ritholtz Wealth Management focuses on serving individuals and high-net-worth individuals. Trusts, estates, charitable organizations and pension and profit-sharing plans are also clients of Ritholtz. The firm also helps manage corporate retirement plans and 403(b) plans.
The minimum account balance required for Ritholtzâs comprehensive portfolio management services is $750,000. However, the company does offer a robo-advisor platform, Liftoff, that is provided by Betterment for investors who cannot meet that minimum threshold. The minimum account size for a Liftoff account is negotiable.
Ritholtz focuses on portfolio management while also offering financial planning and consulting as part of its services. The firm also offers assistance with company retirement plans and institutional asset management.
Discretionary portfolio management is done on a personalized basis. Portfolios are based on core asset allocation models and tactical models, with adjustments made for individual client goals. Portfolio rebalancing can be done regularly.
Additionally, you can access the companyâs robo-advisor, which features more generalized investing advice and doesnât come with the same level of individualization that a client would receive with the firmâs portfolio management service.
Hereâs a full list of services you can expect to see offered by Ritholtz:
Ritholtz offers a personalized approach to portfolio management for clients. It meets with its clients to understand their goals, risk tolerance and other relevant items. Using that information, an advisor then comes up with a recommended investment approach.
In general, the firm focuses on capital preservation and risk management when investing. Ritholtz uses what it terms a âcore asset allocation modelâ that includes institutional share class mutual funds and exchange traded funds (ETFs). The firm also has what it calls a âtactical model portfolioâ that it uses to complement other models. However, because the management is individualized, Ritholtz will also use other strategic asset allocation models that might employ fixed-income, all-equity or other approaches that are designed to help meet client goals.
The firm commonly uses the following investments in client portfolios:
Clients who use the firmâs automatic management platform, Liftoff, will receive more generalized investment advice compared to the personalized advice provided through Ritholtzâs portfolio management services.
Ritholtz charges fees based on a percentage of assets under management for its comprehensive portfolio management services. Fees are charged quarterly on a pro-rata, annualized basis. Here is the firmâs standard fee schedule:
|Assets Under Management||Maximum Annual Percentage of Assets Charged|
|More than $20,000,000||0.35%|
The firm also has a loyalty program, called Milestone Rewards, that offers a discount of 16% on management fees once a client has been with the firm for three years.
For Liftoff, the automated advisory service, the firm charges an annual fee of up to 0.40% of assets under management. Retirement plan consulting fees wonât exceed 1.00%, though itâs important to note that this fee estimate doesnât include fees charged by custodians or other administrators where assets are held.
Ritholtz doesnât participate in wrap fee programs, which is when a firm bundles a variety of services under one flat fee, and it doesnât sell commissionable securities or accept performance-based fees.
Ritholtz has no disciplinary disclosures to report. This means that it has a clean record with no prior legal or regulatory issues on its record.
Firms that register with the SEC must report any criminal charges, regulatory actions or legal actions like liens or civil judgments against them. These are called disclosures and must be listed on a firmâs Form ADV filed with the SEC.
To get started, Ritholtz offers a form on its website that you can fill out to get more information about the firm and provide the firm with details about yourself. After you submit the form, an advisor will reach out to schedule a time to speak. The form requests information such as:
Your advisor will try to meet with you in person to get started, or at least talk to you over the phone. This will give you an opportunity to share your goals and to make recommendations.
After youâre onboarded, your portfolio will be reviewed at least quarterly.
Ritholtz Wealth Management is most likely to benefit high-net-worth individuals who want a more personal touch to portfolio management. Because the minimum for assets under management is $750,000, many investors with less wonât qualify to have their money managed by Ritholtz, unless theyâre open to exploring the firmâs automated advisory platform, Liftoff, which offers less personalized advice.
Additionally, those with a higher amount of assets can benefit from the fact that management fees become lower as assets under management increase. For those who want individualized management and financial consulting, Ritholtz offers options that can be attractive.
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