On Contango

Whos a typical Contango client?

There really isnt one. Our clients include individuals, families, closely held businesses, trusts and foundations. Every client is in a different financial position now and has unique requirements and objectives for the future.

How much money does it take to become a Contango client?

We have no hard-and-fast limits. The issue is really whether our services, strategies and offerings fit your needs. Our accounts range from the low six figures to tens of millions of dollars. We welcome potential clients who want to put us to the test with a small portion of their investable assets were confident well pass with flying colors.

How does Contango differ from other investment advisors and wealth managers?

First, we focus on comprehensive life planning that begins by understanding who you are your current situation, worries, aspirations, constraints and objectives. Only after we understand what you want your money to accomplish for you do we begin developing first a realistic investment strategy that meets your requirements and then the portfolio to implement that strategy.

In applying the strategy weve designed, we draw upon a broad array of investment opportunities well beyond the convention stock and bond mix many of them typically available only to the very wealthy and to institutional investors. Each of these opportunities has already survived a rigorous due diligence process designed to thoroughly assess the quality of the investment and those who manage it.

In addition, before determining whether any given investment belongs in your portfolio and in what balance, we conduct institutional caliber risk-management analysis on that asset as well on its performance vis—vis other securities we may be considering for your portfolio.

Throughout this process, we constantly seek ways to reduce risk while enhancing return. That may mean your portfolio cant soar as high as Wall Streets latest hero, but then our goal is not to hit the occasional home run but to deliver a consistent return that will meet your long-term goals regardless of short-term market fluctuations.

You want all this information from me. What do you do with it?

We use it to develop and manage your portfolio. Where necessary, we provide selected information to third parties such as Fidelity, our account custodian, to enable us to properly manage and monitor your account. Such parties may use that information only for the stipulated purpose(s).

We do not give out client information to anyone without your specific written permission. Period.

Whats the point of offering a number of different investment types?

Contangos philosophy is based on mitigating risk through, among other means, broad diversification. And by diversification, we dont mean that we recommend small-cap as well as large-cap stocks, investing in pharma as well as in high-tech or that we favor global as well as domestic bonds.

It means that we employ a wide spectrum of investment opportunities from commodities to private equity from distressed plays to structured debt. In each instance, we have assessed the potential risks to be more than offset by the anticipated returns. Equally importantly, we are also satisfied that the assets in your portfolio will have different responses to specific pressures and events: inflation, recession, geopolitical tensions, soaring oil prices, a tsunami in Thailand or a hurricane in Kansas.

How do you price your services?

We do not receive payments from third parties, only from you, our client. That fee is based on assets under management.

Some investment products such as mutual funds and hedge funds have embedded management fees and other costs because third parties manage and implement them. We will always make these clear to you. We do not employ active managers who charge management fees unless we believe that they are likely to generate for you returns in excess of their costs. If a product that we recommend has embedded costs, we will work with you to help you understand those costs and the role of the investment in your portfolio.

What’s the net worth of your average client? I want to make sure I get good service, regardless of whether I’m one of the firm’s biggest clients

All of our clients get good service whether they’re the smallest or largest at the firm. We don’t do business any other way.

Whether you would benefit from working with us will depend on the types of investment strategies with which you would feel comfortable and on whether your assets are sufficient for us to add value to the financial strategies that address your specific goals. This is an analysis that we would need to make after discussing your needs.

On Investing

If I invest with Contango, will my money be safe?

No investment is entirely without risk. And there are many different dimensions to risk. However, managing risk is a cornerstone of Contangos approach and we employ a multitude of techniques to monitor and control it.

We seek to maximize the likelihood that you are compensated fairly for the risks you assume and to minimize the most important risk of all that you will not reach the goals you have set. Learn More

You use the phrase life planning on your website. What exactly does it mean?

Life planning refers to a comprehensive program for assessing and managing all the components of your wealth and coordinating them with your future plans. This involves integrating the tax implications, estate planning and investment planning with your lifestyle goals and your aspirations, as well as with your concerns and your constraints. Life planning goes beyond that limited financial planning advice, money management services, or specific investment advice that many financial advisors provide.

Whats the difference between ETFs, SMAs and mutual funds?

An exchange-traded fund (ETF) buys securities that are representative of one or more of the many market indices and sells blocks of shares to investors. ETFs are generally an economical way to invest in a particular market sector. Because these are essentially investments in indices, they are not actively managed.

A mutual fund is composed of a pool of securities that can include many different types of investments; typically, these are chosen according to a particular investment philosophy. Depending on their composition, they may be actively or passively managed. If the former, the managers goal is to consistently outperform the funds stated benchmarks.

A separately managed account (SMA) holds a collection of individual securities managed for an individual investor and can be customized to meet investor needs. The investment manager makes buy and sell decisions of securities based upon a predetermined agreement. Managed accounts can offer tax management benefits relative to mutual funds.

Return to top of page