VALUE: After Hours (S07 E13): Billion-Dollar Advisors, Underperforming Portfolios

During their recent episode, Taylor, Carlisle, and Barry Ritholz discussed Billion-Dollar Advisors, Underperforming Portfolios. Here’s an excerpt from the episode:

There was this big Bloomberg story about a family. They’re German, like generations of German chemical industrialists that survived both wars and built a small fortune. The problem is it should have been a large fortune. The headline that blew my mind was they have two advisors for 20 something years. Their advisors became billionaires. Not through their side investments, not through having hundreds of billions of dollars in assets that they’re charging a fee.

One family, these guys ran the family office and each managed to capture a billion dollars apiece while at the same time wildly underperforming both the index and the benchmark. So, I don’t know why they felt entitled to a billion dollars other than just having the sheer chutzpah to take that much in fees. “Hey, how do we do this year?” “We underperformed the S&P 500 by 400 basis points. That’s got to be worth $100 million, line it up.” [Jake chuckles]

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VALUE: After Hours (S07 E13): Billion-Dollar Advisors, Underperforming Portfolios

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