Founded in 2009, Lighthouse strives to provide investment advice and asset management to private investors pursuing an absolute return approach.
Our first objective is to shield clients’ assets from adverse impacts such as price depreciation and inflation.
We base our advice on more than 26 years of investing, having successfully managed money since 1985.
Our remuneration model distinguishes Lighthouse from most investment managers – we only get paid when performance exceeds a hurdle (money-market rate or 10-year government bond yield, whichever is higher). We charge 25% of the excess performance, aligning our interest with our clients’ goals. Additionally, we offer high-water marks (any losses have to be recovered before performance fees kick in).
Examples:
10-year US Treasury bond yield: 1.6% (serves as “risk-free” hurdle)
A) Portfolio return after 1 year = 0% => performance fee 0%
B) Portfolio return after 1 year = 1.6% => performance fee 0%
C) Portfolio return after 1 year = 5.6% => performance fee 1% [(5.6 – 1.6)/4]
D) Portfolio return after 1 year = 11.6% => performance fee 2.5% [(11.6 – 1.6)/4]
A monthly “Letter to investors” informs about performance, investment strategy and important themes. In addition, a daily “market comment” helps understanding important events.
We consider ourselves as “marco-” investors, looking at all asset classes and global markets for a complete picture of the financial world.