When it comes to assets, a new investment management firm is trying to have its cake and eat it too.
Macey & Co., a newly opened Atlanta shop, is a hybrid of consultant and money management firm, said founder Rex Macey.
The firm is a registered investment adviser and will manage some investments, particularly for individual clients, while working mainly in the asset allocation and performance review areas for his institutional clients, farming out those investments to other money managers. Mr. Macey likened his approach to a general practitioner who diagnoses a patient and then calls on a specialist; the general practitioner may not get paid as much as the specialist, he said, but he is still a doctor.
Mr. Macey said he now is conducting interviews for a consultant to open an office in Chicago; a decision is expected soon.
The firm has $10 million in assets from individuals, and Mr. Macey is targeting $500 million in assets as his optimal size. Mr. Macey said he is concentrating on individuals before attempting to attract institutions because of his firm's short track record.
Mr. Macey's background includes stints as a consultant with Kidder Peabody Co.'s Prime Asset Consulting Group, a broker consultant, which he left to join the start-up of Mobius Group Inc. After leaving Mobius in 1993, he worked on several independent consulting projects before opening Macey & Co. in June.
Once he begins marketing to institutions, Mr. Macey said he will target small and midsized corporate plans of approximately $5 million to $50 million, as well as foundations and endowments. His minimum account size is $250,000 and the fee schedule begins at 100 basis points for the first $500,000 in assets.