Broker Check

Investment Management - Bridging the Gap

Institutional vs. Retail

Fees - Part 1

Fees - Part 2

In the world of investing, there are two major groups of investors: retail and institutional. There has historically been a large gap between these two groups, both in size, and sophistication. As background, retail clients are individuals, just like you, who typically have a retirement plan at their job or investments in a brokerage account. While a retail portfolio could be of any size, generally speaking, they are ten million dollars or less. Institutional investors are typically pension funds or endowments that have portfolios in the realm of the hundreds of millions, to hundreds of billions of dollars.

A few of the biggest differences between these two groups are that institutional investors:

  1. Have a significant portfolio allocation to alternative investments (not stocks, bonds, cash)
  2. Utilize specialized strategies within their portfolios (down-side protection, upside leverage, etc.) to help manage risk/volatility.
  3. Have the size/scale to implement the strategies above effectively

At TrestleBridge Capital, LLC we strive to bridge the gap between the retail and institutional worlds of investing. Our sophisticated money management style combines knowledge and experience in a cost-effective manner. In today’s volatile and complex financial markets, we believe that retail clients’ portfolios should have similar levels of diversification and risk mitigation that large institutional investors have had for decades. Until recently, many of the asset classes used in institutional portfolios were literally unavailable to retail investors. This is no longer the case, and TrestleBridge Capital has the expertise to build sophisticated portfolios that utilize many of the same asset types and risk mitigation techniques that large institutional investors have used for years.

Our investment models can be modified to suit any investor’s level of risk tolerance. We can move clients up and down the ‘risk dial’ based off their preference for or aversion to risk/volatility. Too many individual investors ride what we have termed the ‘retail rollercoaster’ unnecessarily, being exposed to all of the market’s volatility on the way up, and more importantly, on the way down. This does not need to be the case. Let us show you how.