We get this question a fair bit from prospective clients when we first talk to them. Of course, privacy and confidentiality rules do not allow us to give up our client names, so we talk in generalizations about what type of folks we manage money for.
I was speaking to a prospective client last week, in fact, when I was asked this very question so I thought I would write a quick post on how we describe the people we manage money for.
We can probably best-describe our clients as falling into one of two buckets:
And in group (2) we have folks who are very sophisticated investors:
But what really should matter to a prospective client is, "Will you treat me just the same as some of your larger clients or more sophisticated clients?" We get this question a lot too. You bet and, in fact, we spend less time with our sophisticated clients than we do with our less sophisticated clients (our sophisticated clients don't require a Wealth Forecast, for instance). And we promise to meet with all of our clients for semi-annual reviews, regardless of who you are or the size of your account.
And the last thing about size...it doesn't matter at High Rock. Because we are a discretionary Portfolio Management company, when we do a trade, we do it in "bulk" and then allocate it pro-rata across all of our accounts at the end of the day. So no one is disadvantaged because of the size of their account like if your non-discretionary "portfolio manager" has to call you to do a trade to get your permission...does he/she call the biggest clients first? Not sure how that works elsewhere but it is not the case at High Rock. All for one and one for all.