Client Focus and Objectives
At Galapagos Partners, we take a comprehensive and holistic approach to
managing our clients’ portfolios. The principals of the firm directly manage
each client relationship in order to provide high-touch service and address the
individual needs of our clients. Our service is based on relationships built on
trust and understanding between our clients and our focused team of
professionals. By getting to know each family member personally, we maintain a
comprehensive awareness of each family's entire needs.
We maintain complete oversight of our families' overall financial
situations, their ongoing needs and their specific family objectives. We
seek to eliminate time-consuming and worrisome tasks and run our clients’
estates more efficiently and cost-effectively. We provide our clients with
sound, objective financial advice and guidance; proactive investment management;
comprehensive financial analysis, and coordinate with leading firms concerning
tax planning and preparation, insurance needs, and leading-edge trust, estate,
and philanthropy planning.
By managing all the financial affairs of our clients under one roof, we
can coordinate and exploit the critical interdependencies among
investments, taxes, estate plans, insurance, expense management, and
philanthropic decision-making for our clients. And, by effectively managing
the information between all of our client's advisors, we're able to
successfully integrate each family's unique and complex needs. Where
appropriate, we will participate at the Board level for our client family's
investments or operating businesses.
Our investment advisors, analysts, in-house accountants and portfolio
tracking tools allow us to provide accurate and detailed aggregated reporting of
an entire portfolio along with sound advice to our clients. Our goal is to
leverage our collective expertise to help our clients address the
responsibilities of wealth, so they reach their goals and create the life they
Because we are independent, we utilize relationships with those institutions
and investment managers that have proven themselves to be sustainable over time.
These include the largest money center banks and some of the best investment
managers in the world.
Every client and their family members’ objectives are unique. Our goal is to
identify these objectives and work towards fulfilling them in the following
1. Needs and Gap Assessment
We meet with our clients to learn about their financial
and personal goals. Our services are comprehensive, and can include the
- Multi-Generational Family Office: for those desiring full
family-office services to sustain wealth across generations and for
- Financial Family Office: for those desiring a ‘Chief Financial
Officer’ to manage, organize, and oversee their financial affairs
- Family Investment Office: for those desiring a ‘Chief Investment
Officer’ to manage and oversee their investments
Upon reviewing our client’s existing circumstances
and their goals, we conduct a gap assessment and deliver a recommendation to
solve each individual client’s specific needs. Through active and continuing
dialog with each client, we develop specific asset allocation recommendations
mindful of their current concentration risks in order to meet each client’s
individual needs as defined by:
- Return objectives within defined time-frames
- Defined risk allowed
Our objective is to obtain the best long-term result for
each individual client corresponding to their defined return and risk tolerance
2. Portfolio Construction and Ongoing Tactical Adjustments
Upon obtaining consensus on the asset reallocation plan,
we begin to implement the plan and track performance. Our investment committee
meets weekly to review the markets and their respective impact on a client’s
portfolio and to propose necessary adjustments. The same attention is given to
the other goals and needs of the family.
3. Reporting and Family Meetings
We are in constant communication with our clients. Our
sophisticated financial software allows for customized reporting of a client’s
entire portfolio. We provide customized monthly reporting that clearly shows the
portfolio’s performance for a particular period of time, as well as over the
life of the client-firm relationship. These reports are reviewed with clients in
person and remotely on a monthly or ad hoc basis.
Clients’ interests are typically best served by a number
of carefully selected financial relationships. This introduces complexity in
managing and tracking their assets that is best met by an experienced
multi-family office with a commitment to technology and our management of
increasing amounts of data.
Integrity and Transparency
One of our roles is to objectively evaluate existing and
potential investment opportunities. Given the nature of our fee structure, we
avoid any possible conflicts of interest with other financial institutions. We
are only paid by our clients. We are regulated by the U.S. Securities and
Exchange Commission and U.S. Commodities Futures Trading Commission.
We understand and honor confidentiality. Internal and
external controls to protect privacy are regularly reviewed, and our firm
undergoes cybersecurity testing and has 24x7 network monitoring.
Our investment committee is comprised of seasoned
professionals who utilize their operating experience in conducting due diligence
and risk analysis. Our team members have deep roots in alternative investments,
and we have served clients’ needs in the family office space for over twenty
Our economies of scale have a number of realized benefits
to our clients including lower fees, aggregation of assets to reach manager
minimums, and more access to senior management and third-party portfolio
We are in constant communication with our clients. We
provide customized monthly reporting that clearly shows the portfolio’s
performance for a particular period of time, as well as over the life of the
At Galapagos Partners, our focus is to preserve and grow our client families’
wealth for them and their future generations. This is achieved through
investment expertise, independent portfolio management, rigorous analysis, and
access to diverse research and investment opportunities.
The core tenets of our investment philosophy include:
- Preservation of capital. Diversification and non-correlation reduce
- Rigorous manager selection and portfolio construction to focus on
investments with the potential to provide greater risk-adjusted after-tax,
real rates of return.
- Active management of managers that adapt to market evolutions,
produces superior returns for certain asset classes rather than relying on
a “buy and hold” strategy.
- Passive indexing may be appropriate in certain
Each specific investment or fund is selected according to
a rigorous internal methodology concentrating on long- term performance
measures. All associated data is updated and reviewed on a monthly basis
including the incorporation and consideration of newly identified,
A rigorous quantitative analysis is carried out on those
funds ranking highest according to our internal proprietary methodology. This
relates primarily to the performance of the funds, their risk levels and the
consistency of management.
The risk management approach reflects systematic
attention to understanding each manager’s individual stress risk and how that
stress risk is correlated to the other managers in the portfolio. Utilizing
volatility is helpful in portfolio construction, but truly understanding
correlation in stress events is key to avoiding drawdowns.
Qualitative Due Diligence
For managers who have passed our initial selection
process, this analysis focuses on each manager’s investment philosophy and the
consistency of its implementation, the profile of its management team, and its
approach to risk management. A meeting with each fund manager at their location
is part of our final selection decision.
Ongoing portfolio monitoring reflects a systematic
analysis of overall performance results achieved to include the positive and
negative contributions of each asset class and individual investment within
portfolios. We benchmark all our managers and monitor them for correlation and
style drift. We further develop proprietary macro-economic and manager-specific
key performance indicators for our investments. The breadth of analysis involved
in this effort demands extensive use of carefully selected and developed
quantitative management tools for the evaluation of single investments and
Galapagos Partners’ investment philosophy reflects many of the attributes of
the Galapagos tortoise including:
Compounding Wealth Over Time
While the eggs of a Galapagos tortoise are small, the
tortoise itself grows to an enormous size. Therefore, over the long life of a
tortoise (they can live to be over 200 years old), their size compounds many
times over. Each of our client families have a nest egg of their own. They come
to us to help compound their wealth over time.
Adapting to the Environment
Through the process of evolution, the Galapagos tortoise
constantly adapts to its changing environment. Since the inception of our firm,
Galapagos Partners has successfully managed a select group of large,
multi-generational family offices, while constantly evolving our business to
better serve our clients.
The Galapagos tortoise’s heavy shell provides protection
from harsh environments. Their ability to move with speed and determination is
surprising given their size. Similarly, our approach to investing is designed to
protect our clients during down markets, while allowing them to excel in