David Stewart

Redding, CA (USA)
Role(s):
Founder/Owner/Principal

Vintage Capital Advisors, LLC

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Location: Redding
Industry: Finance
Year Founded: 2004
Number Employees: 1-10 people
Business Stage: Growth (profitable)
Entity Type: Limited Liability Company
Description: Vintage Capital Advisors, LLC is a Registered Investment Advisor (RIA) in California. We provide asset management services for corporations, partnerships, non profit organizations, 401K Plans, Pension Plans, and individuals. We also manage a series of our own funds under the VCA family of funds, and the Vintage Asset Management series of funds. We manage assets for our clients for an asset management fee, performance fee or a combination of each and engage in no transactional based compensation business. We have, what we believe to be, a great business model for investment advisors to transition from a traditional brokerage firm to independence. Here are a few of the details thate make us unique. VISION My vision is based on the idea that the financial services industry can benefit the individual investor to a greater degree than it does currently, and that over time investors are going to demand more from their investment professionals, not only in the way of services, but also in their level of knowledge. In addition, I believe that they way investors pay for investment advisory services are going to change over time. I was in the industry during the first wave of transition from the commission-based business to the asset management fee-based business. The next wave was the addition of the performance fee as a way of compensating the managers for their added value brought to the investor by way of positive returns. My belief is that the next wave will be a decrease in the asset management fees that are simply attached to the client assets, while adding a performance-based fee. I have not come across a client yet who is opposed to paying a lower asset management fee, while paying a performance fee; however, I have run across clients who do not like the idea of paying only a higher asset management fee. Their fear under the “fee only scenario” is that their advisor is only an “asset gatherer” and not really a “manager” of their hard earned assets. I envision an environment that allows the advisor to lower the cost of the asset management fee, while having the opportunity to earn a performance based fee, where this relationship is appropriate. We intend to pay our investment advisors 80%-85% of their generated asset management fees based on their assets under management. This means that the typical wire-house investment advisor could literally cut the client asset management fees in half and make more money when compared to their existing payout with the wire-house broker. Also, where appropriate, our advisors have the ability to charge a performance based fee with the same payout levels. Our investment advisors will be independent contractors working under the Vintage Capital Advisors label which affords them the ability to: Manage their own expenses Maintain their own identity Create their own teams and relationships Expense items as part of their business that they could not as a traditional employee Contribute greater amount to their own retirement plans And much more As part of our corporate structure, 20% of the net profits will be returned to the investment advisors. We achieve this through the creation of a separate share class within our company, of which our investment advisors are automatically participants. This allows them, through their “ownership” to participate in our group health care plan, but more importantly, participate on a non-discretionary basis in the profits of the company. These amounts will be paid to them at least quarterly as an addition to their earned compensation. As an added benefit, should the investment advisor die while employed at Vintage Capital Advisors, we will continue to pay their portion of the "Advisor Share Class" payout to the surviving spouse for the remainder of their life based on the employed's AUM at the time of death, calculated as a percentage of the total AUM on an ongoing basis for determining payout to the surviving spouse. We are not “self-clearing.” This means that an investment advisor can custody and trade the client assets at virtually any custodian firm he/she chooses. This results in the best relationship for the client because the clearing firm can be selected based on product array, best execution, and price without corporate bias or conflict of interest. For example, one of our custodial relationships allows us to trade equities at less than ½ a cent per share which is much cheaper than a traditional brokerage firm, and even cheaper than self-clearing investment advisory firms like LPL Financial who charge approx. $18 per trade. This also affords the investment advisor the ability to hold their clients’ assets at the very wire-house he/she may be leaving. This will help reduce the erosion to their book during the transition, and may allow clients who may be reluctant to move their assets to one of our very reputable custodians to still feel at ease working with the transitioning advisor. As an independent RIA we have the ability to invest in virtually any type of asset without restriction (as appropriate for the individual client) including but not limited to, stocks, options, futures, foreign currencies, all types of bonds and preferreds, load or no-load mutual funds, hedge funds, private equity funds, and separately managed accounts held with outside money managers if the client desires a specific manager. We also have the ability to “trade-away,” meaning we can custody assets at one firm and trade them at another based on price, security, or execution preferences. Our advisor platform allow the advisor to create customized compliance approved presentations (including portfolio yield curve analysis, efficiency frontier curve analysis, and Monte Carlo simulations), access to independent third party research, portfolio modeling and rebalancing to model capabilities, along with the ability to manage every aspect of their clients’ assets, appointments, and relationships, including statement processing and distribution. For the purposes of asset management, our various custodians allow for all types of portfolio management, and order processing, including security trading automation. Fees are negotiated between the investment advisor and the client directly (subject to final approval) based on the services the advisor is providing without firm imposed minimums. These are just a few of the attributes that set Vintage Capital Advisors apart from other independent investment advisory firms. We believe this is the best model to not only bring the best value to our clients, but also allow our investment advisors, and potential investors in our firm (like yourself), to flourish through our expansion efforts. We feel this is a sound model for success and will set us apart from our competition in the future. THIS IS THE HIRING MEMORANDUM WE ARE USING TO HIRE ADVISORS Vintage Capital Advisors is a rapidly expanding boutique Registered Investment Advisor firm based in California, and we are seeking seasoned Investment/Financial Advisors, or teams of Advisors, currently employed with an RIA or brokerage firm. This is a unique opportunity, as our Advisors are partners in our firm, and participate directly in our firm’s net profits as part of our corporate structure and receive automatic share ownership once employed with Vintage Capital Advisors. This is not a discretionary profit sharing plan, but is a compensation benefit of being part of our organization. We offer one of the most competitive compensation packages available. Our Advisors with AUM of $25MM-$100MM earn an 80.0% payout and Advisors with $100MM + earn an 85.0% payout on their Asset Management Fee-Based business. Since we encourage more of an institutional style of managing client assets, we also provide the opportunity for our Advisors to manage client assets for a performance fee, where this method of compensation is appropriate. Our Advisors receive their AUM based payout on all earned Performance-Based Fees. Our end goal is to provide our Advisors every tool available for them to manage client assets effectively, and in accordance with each Advisor’s individual style, but also provide them with a 75% PAYOUT NET OF THEIR OFFICE RELATED EXPENSES!!! Here are several of the additional benefits our Advisors enjoy: · Ability to manage for either an asset-based fee, performance-based fee or a combination of both · Multiple custodian firms to provide best execution to best suit client or security needs · Ability to trade at one firm and custody assets at another (trading away) · No self-clearing. We are not a broker dealer and make nothing on our Advisors’ transactions, and are therefore always searching for best cost and execution for our clients · Virtually unlimited security selection including external managers and hedge funds · Portfolio Modeling including ability to rebalance to model across multiple client accounts instantaneously and simultaneously · Customizable benchmarks to match your investment style · Automated Trading Systems · NO PROPRIETARY PRODUCTS or PRODUCT PUSHING!!! · Medical Benefits & Annual Outing/Trip · Ability to maintain your own/team identity while working under the Vintage Capital Advisors label · We will offset the office related expenses and set up expenses for 3 months, and help with the transition from your current firm repayable out of the following 2 years’ gross fees. Transition time can be as short as 2 weeks. I would enjoy the opportunity to speak with you regarding our expansion efforts and our funding needs. Regards, David W Stewart President / Portfolio Manager Vintage Capital Advisors, LLC