Wealth Management and Long Term Investing Products

Institutional Wealth Management

The stability of Gaineswood’s deep pool of institutional investment management professionals and its commitment to being operator owned result in continuity of money management style and process for your institution’s investment management needs. Beginning in the 1980s, William W. Baker, CFA, was a money manager overseeing the investment management of more than $100 million in institutional funds for over nine years before founding Gaineswood in 1995. In 2000 Gaineswood began managing institutional separate accounts and a private limited partnership as an investment advisor.

Individual Wealth Management

As an individual investor of substantial wealth, you want your portfolio management advisor to treat your assets as though they were his own. The very first separately managed accounts of Gaineswood were those of family members of our founder, whose aim was to preserve value yet compound great wealth through wise, tax-averse investment management. Since our inception in late 1995, Gaineswood’s wealth management strategy of low portfolio turnover and its search for equity investments with persistent growth characteristics has been tailored to maximize capital appreciation and minimize capital gains taxation.

Family Office Management

Great wealth has been accumulated by families retaining high quality growth businesses for decades. Long-term ownership of private companies with sub-par returns on capital can also build wealth, but it compounds more slowly than stock investing by investment management professionals.

Why shouldn’t your family wealth management office take a critical look at the return generated by its core asset and see if Gaineswood’s portfolio management strategies can elevate your return on capital and propensity toward growth? Similarly, if your family has diversified away from long-biased stock investing, has it accepted mediocre investment returns merely in the name of reducing equity market correlation? Moreover, has your family accepted a higher tax burden associated with trading and hedging strategies that purport to reduce this correlation? Taxation is parasitical to your family’s successful wealth management. The most impressive family wealth management offices are those which garner stock investing returns from owning extraordinarily profitable enterprises such as Microsoft or GEICO, but because turnover is low, are not forced to share profits from effective portfolio management repeatedly with tax authorities.

Families whose goal is to augment a legacy for future generations through stock investing in superior companies for the long haul are an ideal philosophic match with Gaineswood’s wealth management investment approach. We are prudent yet aggressive in our wealth management strategies, and above all we adhere to a long-term objective of persistent wealth creation through strategic stock investing. Our extensive research coverage can spread stock investing risk across multiple sectors and holdings, while maintaining a focus on keeping you invested on a multi-year basis in companies that have superior return on capital. The result: effective wealth management.

Risk Management

High net worth individuals, foundations and endowments have flocked to long/short hedge funds for wealth management, carving them out as a non-correlated category of investments that by definition minimize risk from stock investing. Singular devotion to avoiding market risk and grinding out small, predictable monthly returns in investment management requires high turnover and the embracing of untested vehicles such as emissions credits or esoteric derivatives. “Advertised” returns on stock investing are pretax, and the bite of taxation is frequently underestimated or is taboo in discussions of your investment management objectives. Ironically, general partners of money management firms often do not keep a significant portion of their own wealth in the investment products they hawk to you, for they are sensitive to taxes and wish to achieve more attractive portfolio management investment returns. Since inception, Gaineswood’s asset management products have been heavily owned by the founder or his family as a percentage of personal assets, thus unifying Gaineswood’s own portfolio management interests with your wealth management objectives.