Overview

 

Bantam’s consulting services are generally offered on a fixed-fee basis.  After reviewing the relevant documents, we will calculate a fixed price for the deliverables requested.

 

The firm’s asset management services are offered for a low fixed-fee, with a carried interest for outperformance of the index.

Sample Consulting Engagements

Second Opinion

 

An investor has multiple brokerage and advisory accounts along with direct investments in a hedge fund and private equity funds.

 

They need a comprehensive review of their investments, as a whole, from fee, risk, return, and tax-efficiency perspectives.

 

The client provides us with their investment statements, K-1’s, new account forms and other agreements, which we analyze, and then prepare a simple report that explains all aspects of their investments in plain English.

 

Alternatives are presented, where appropriate, as well as suggestions of ways to reduce costs.

Due Diligence

 

An investor is recommended a private equity investment but doesn’t have the time or expertise to evaluate the potential risks, returns, or deal structure.

 

The client provides us with the PPM and other deal-related materials.  We analyze the PPM to discover the true all-in costs, risks, and return expectations, as well as liquidity constraints, use of leverage and other deal terms.

 

After our analysis, we prepare a short summary of the key considerations, our opinion of the timeliness of the investment, other methods to get the same or similar investment exposure, and a final recommendation.

Trustee Services

 

A professional trustee takes over a complex estate with multiple accounts and loans.  They need an opinion about the efficiency of how the assets and loans are managed and suggestions on how to best structure the investments given the needs of the estate.

 

The trustee provides us with the trust instruments, account statements, loan agreements, and other relevant documents.  We review the documents and provide a simple report that highlights inefficiencies, risks, and suggests ways to reduce fees, risks, and interest expenses.

Fee Negotiation

 

As part of a second opinion, we find that an investor is being charged a one percent management fee in addition to an average of 75 basis points of underlying investment expenses.  Our analysis shows that on an aggregated basis, the clients equity investments are equivalent to an investment in the S&P 500, but with higher fees and worse performance.  (In essence, their advisor is charging them an alpha fee for beta performance.)

 

They would like to stay with the advisor for personal reasons, but would like to reduce their fees.

 

We prepare a forensic analysis of the portfolio that includes: beta, R-squared, correlation, and active share analyses, among others, and present the findings to their advisor.  We then negotiate fee rebates and reductions with the advisor on the client’s behalf.

Compliance and Supervision

 

Most firms supervise their advisors after-the-fact.  That is, the advisors do what they want and the supervisors wait for red flags before undertaking a review.

 

We believe this is completely backwards.  We carry out compliance on a before-the-fact basis.  That is, our supervisors know each one of our clients and review any formal recommendations with the client’s Private Wealth Fiduciary before they are made to the client.