As an investment advisory firm, Genesis Investment Advisors has its own characteristics and differences compared to traditional investment advisors. This article will analyze the background, business model, fee structure, investment philosophy and other aspects of Genesis Investment Advisors, and compare it with traditional investment advisors, so as to have a deeper understanding of this emerging investment advisory firm.
Genesis focuses more on alternative investments while traditional advisors focus more on traditional assets
The document does not provide much information about Genesis Investment Advisors’ specific investment areas. However, from the company name and background, we can infer that Genesis likely focuses more on alternative investment opportunities compared to traditional advisors who invest more in stocks, bonds and mutual funds. This is because the founders of Genesis have experience in alternative assets and they aim to bring institutional-quality alternative investing to accredited individuals.
Genesis charges performance fees while traditional advisors usually charge AUM fees
The fee structure is a key differentiator. Traditional investment advisors usually charge a percentage of Assets Under Management (AUM) as fees annually, typically 1% to 2%. However, Genesis seems to charge performance fees based on the actual return generated rather than a fixed AUM percentage. This better aligns incentives between the advisor and client.
Genesis emphasizes portfolio customization while traditional advisors often use model portfolios
From the background of its founders, we can assume that Genesis offers more customized investment solutions for accredited investors rather than just applying standardized asset allocation models. The founders have experience in building customized portfolios of alternatives for institutional clients. However, traditional advisors often utilize predetermined strategic or tactical model portfolios to simplify investment management and minimize costs.
Genesis likely has higher minimum investable assets than most traditional advisors
Since Genesis focuses on bringing institutional-quality alternative investment to individual investors, it likely has a higher minimum amount of investable assets requirement compared to traditional advisors. Most traditional advisors have minimums between $50,000 to $100,000. However, Genesis probably has minimums closer to $1 million or above given its focus on ultra high net worth and accredited investors.
In summary, Genesis Investment Advisors differs from traditional investment advisors in several key aspects – its focus on alternatives over traditional asset classes, use of performance-based fees instead of AUM fees, emphasis on customization over model portfolios, and higher minimum investable assets requirement.