Fisher Investments, a privately-held investment management company, has been a dominant player in the financial industry for over four decades. Founded in 1979 by Ken Fisher, the company has grown to manage over $150 billion in assets, making it one of the largest independent investment management firms in the United States. But how is Fisher Investments ranked, and what drives its performance? In this article, we’ll delve into the company’s rankings, its investment strategies, and what sets it apart from its competitors.
Rankings and Accolades
Fisher Investments has received numerous accolades and rankings from prominent financial publications and organizations. Here are a few notable ones:
Bloomberg’s Top 100
In 2020, Fisher Investments was ranked #14 on Bloomberg’s Top 100 Hedge Funds list, which recognizes the top-performing hedge funds globally.
Forbes’ America’s Top Wealth Managers
Fisher Investments has consistently featured on Forbes’ America’s Top Wealth Managers list, which recognizes the top wealth management firms in the United States. In 2020, the company ranked #2 on the list, with assets under management of over $100 billion.
Pensions & Investments’ Best Places to Work
Fisher Investments has been recognized as one of the Best Places to Work in Money Management by Pensions & Investments magazine, a leading industry publication. This recognition is based on the company’s commitment to employee satisfaction, diversity, and community involvement.
Investment Strategies and Philosophy
Fisher Investments’ success can be attributed to its time-tested investment strategies and philosophy. The company’s investment approach is built around the following key principles:
Global Macro Approach
Fisher Investments takes a global macro approach to investing, which involves analyzing global economic trends, market cycles, and geopolitical events to identify investment opportunities. This approach enables the company to navigate complex market landscapes and make informed investment decisions.
Active Management
Unlike passive index funds, Fisher Investments employs an active management approach, where experienced investment professionals actively monitor and adjust the portfolios to maximize returns and minimize risks.
Research-Driven Investing
The company places a strong emphasis on research-driven investing, with a team of over 300 research analysts and a rigorous research process that helps identify undervalued or mispriced securities.
Tax-Smart Investing
Fisher Investments recognizes the importance of tax efficiency in investment returns. The company’s tax-smart strategies aim to minimize tax liabilities and maximize after-tax returns for its clients.
Performance and Returns
Fisher Investments’ performance has been consistently strong across various market cycles. Here are some key performance metrics:
Long-Term Performance
According to Fisher Investments’ own data, its portfolios have outperformed the broader market over the long term. For instance, the company’s flagship strategy, the Fisher Investments Institutional Strategy, has returned over 10% annualized since its inception in 1979, compared to the S&P 500’s return of around 7% annualized over the same period.
Short-Term Performance
While past performance is not a guarantee of future results, Fisher Investments’ short-term performance has been impressive. In 2020, the company’s portfolios reportedly outperformed the market during the COVID-19 pandemic, with some strategies returning over 20% in the first half of the year.
Fees and Pricing
Fisher Investments’ fee structure is competitive with other investment management firms. The company charges a management fee based on the assets under management, with fees ranging from 0.65% to 1.5% depending on the strategy and the size of the portfolio.
<h2ClientId and Reputation
Fisher Investments has built a reputation for serving high-net-worth individuals, families, and institutions. The company’s client base includes:
High-Net-Worth Individuals
Fisher Investments serves a diverse range of high-net-worth individuals, including entrepreneurs, executives, and professionals.
Families and Trusts
The company has expertise in serving family offices, trusts, and other multi-generational wealth entities.
Institutional Clients
Fisher Investments manages assets for various institutional clients, including pension funds, endowments, and foundations.
Conclusion
Fisher Investments’ exceptional rankings, accolades, and performance are a testament to its commitment to delivering exceptional investment results for its clients. The company’s time-tested investment strategies, research-driven approach, and tax-smart investing philosophy have contributed to its success over the years. While past performance is not a guarantee of future results, Fisher Investments’ impressive track record and reputation make it a compelling option for investors seeking a trusted and experienced investment management partner.
Is Fisher Investments a good investment management company?
Fisher Investments has a mixed reputation in the investment management industry. While it has received high rankings from reputable organizations such as Barron’s and Forbes, it has also faced criticism for its high fees and aggressive marketing tactics. Additionally, some investors have reported dissatisfaction with the company’s investment strategies and customer service.
Ultimately, whether Fisher Investments is a good fit for an individual investor depends on their personal financial goals, risk tolerance, and investment preferences. It’s essential to thoroughly research the company, its investment strategies, and its fees before making an informed decision. It’s also crucial to read reviews and testimonials from existing clients to get a better understanding of their experience with the company.
What are the fees associated with Fisher Investments?
Fisher Investments charges a management fee based on the size of the investment portfolio. The fee ranges from 0.65% to 1.15% of the portfolio’s value, depending on the size of the account. This fee is competitive with other investment management companies, but it can be higher than what individual investors would pay if they managed their investments directly.
It’s essential to note that the management fee is not the only cost associated with investing with Fisher Investments. There may be additional fees for trading, custody, and other services. Investors should carefully review the fee structure and understand all the costs involved before investing with the company.
What is Fisher Investments’ investment strategy?
Fisher Investments uses a proprietary investment strategy that focuses on global macroeconomic trends and sector rotation. The company’s investment managers analyze various economic indicators, such as GDP growth, inflation, and interest rates, to identify trends and opportunities. They then use this information to allocate assets across different sectors and geographic regions.
The company’s investment strategy is designed to be adaptable to changing market conditions. Fisher Investments’ investment managers continuously monitor market trends and adjust the investment portfolio accordingly. This approach aims to minimize risk and maximize returns over the long term.
Can I open a Fisher Investments account online?
No, Fisher Investments does not offer online account opening. The company requires potential clients to speak with one of its financial advisors to discuss their financial goals, risk tolerance, and investment preferences. This advisor will then help create a personalized investment plan and guide the investor through the account opening process.
Fisher Investments takes a consultative approach to investment management, and the company believes that a personal consultation is essential to creating a customized investment plan. While this approach may not be as convenient as online account opening, it allows investors to receive personalized guidance and advice.
Is Fisher Investments a fiduciary?
Yes, Fisher Investments is a fiduciary. As a registered investment advisor (RIA), the company is bound by the Investment Advisers Act of 1940 to act in the best interests of its clients. This means that Fisher Investments has a legal obligation to provide investment advice that is in the best interests of its clients, rather than in its own interests.
Fisher Investments’ fiduciary status means that the company must disclose any conflicts of interest, provide full transparency into its fees and investment strategies, and avoid any practices that could be detrimental to its clients. This provides an added layer of protection for investors who choose to work with the company.
Does Fisher Investments have any minimum investment requirements?
Yes, Fisher Investments has a minimum investment requirement of $500,000 for new clients. This minimum applies to the total value of the investment portfolio, and it’s intended to ensure that the company can provide personalized service and attention to each client.
The minimum investment requirement may be a barrier for some individual investors, especially those who are just starting to invest. However, it’s essential to note that Fisher Investments targets high-net-worth individuals and institutional investors, and its services are designed to meet the needs of these clients.
Can I withdraw my money from Fisher Investments at any time?
Yes, investors can withdraw their money from Fisher Investments at any time. The company does not have any lock-up periods or surrender charges that would prevent investors from accessing their funds. However, investors should be aware that frequent buying and selling of investments can be detrimental to their long-term financial goals.
Fisher Investments encourages its clients to take a long-term approach to investing and to avoid making emotional decisions based on short-term market fluctuations. The company’s investment strategy is designed to generate returns over the long term, and investors who stay the course are more likely to achieve their financial goals.