Barac Capital Management is an Austin-based investment advisor offering customized investment accounts on a fee-only basis. Our client arrangement means that there are no sales commissions, no conflicting incentives, and no high-pressure sales. We now offer retail investors customized accounts that are managed by an experienced institutional investor and fund manager. Contact us today for a free no-commitment portfolio evaluation at your convenience. E-mail [email protected] or call 512-981-8080. ABOUT: BCM was founded with the belief that investors often over-pay for high-fee investment solutions under advisory arrangements with considerable conflicts of interests (which can enrich the advisor at the expense of the client). The company aims to address these issues with the following positive features: NO TRADE COMMISSIONS: -- Many financial advisors are paid by trade commissions, which can incentivize unnecessary trading and the “churning” of client’s accounts. -- BCM receives no trading commission. Management compensation is solely based on a percentage of assets. The company's revenues only grow if client accounts grow. -- BCM believes that this structure best aligns the interests of the financial advisor and the client. NO CONFLICTING INCENTIVES: -- Many financial advisors are affiliated with brokers who also sell actively-managed mutual funds and annuities (which can have an additional layer of high commissions and/or fees). -- These financial advisors can be incentivized through commissions to sell high-fee products. -- BCM sells no products and will not invest in anything that has a sales commission or an active management fee. BREADTH OF EXPERIENCE: -- Many financial advisors succeed based on their marketing and self-promotion skills rather than their investment skills and experience. -- Conversely, Mr. Barac's experience is heavily weighted in fundamental securities research and global institutional investing, including: -- Proprietary analyst and trader for Barclay's Capital in London -- responsible for investing a portion of Barclay's capital through a combination of bonds, stocks, and fixed-income derivatives (credit default swaps). -- Corporate bond analyst for Schroders (over $200 billion in assets) in London. -- Vice-President and Senior Credit Officer for Moody’s in N.Y. and London. -- Commercial banking experience with FleetBoston (f.k.a. BankBoston) in Buenos Aires, Argentina. -- Manager of a multi-asset (bond/equity) fund since 2011. -- B.S. from Trinity University (1989) and M.B.A. from Southern Methodist University (1998). -- Registered Investment Advisor in both the States of Texas and Florida. CUSTOMIZATION: -- With your input, we will customize your investments to meet your own specific financial needs and goals. -- Going forward, accounts will be continuously reviewed (and adjusted, when necessary). -- Investments are held in your individually-owned Interactive Brokers brokerage account in your name. BCM will have trading privileges (with your consent), but you will have complete control of the account and only you can withdrawal/transfer funds. INVESTMENT PHILOSOPHY: -- The investment strategy entails looking beyond momentum and sentiment and seeking assets that are substantially undervalued, relative to intrinsic value. -- Investment assessments are based on a fundamental analysis that utilizes both a top-down and bottom-up analytical approach which capitalizes on Mr. Barac’s extensive experience in corporate securities analysis. -- Investment allocations to different asset classes (e.g. stocks, bonds) may vary considerably, over time, depending on an assessment of the different asset categories. -- The research-driven and long-term value investing philosophy aims to capitalize on market inefficiencies and deliver systematic outperformance over time. -- The longer-term investment horizon can help to moderate transaction costs and provide for greater tax efficiency, relative to higher-frequency trading strategies. RISK MANAGEMENT: -- Risk management is fundamental to the overall integrity of the investment strategy which focuses extensively on capital preservation and downside risk. -- Considerable focus is put on credit and general risk analysis to determine risk/reward and the appropriate sizing of positions. -- BCM's general strategy further controls risk by limiting exposure to any one single-name security and avoiding illiquid stocks, mortgage-backed securities, or other illiquid assets.
BCM is an Austin-based advisor offering accounts on a fee-only basis (no sales commissions). We now offer retail investors customized accounts managed by an experienced institutional investor and hedge fund manager. Contact us for a free consultation.
Monday: 09:00 - 17:00