dedicated to independent and objective counsel

The Altair Story
Altair is committed to providing true
independent investment counsel.
Our personal stories demonstrate our
commitment to your family.
we hope you can get to know us a little better.
1
Steven B. Weinstein, CFA®, CFP®
President & Chief Investment Officer
Lifelong Chicagoan, active in numerous charitable and
educational institutions, Ravinia enthusiast, third-generation
Chicago Bears season-ticket holder
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A
dear friends
s we enter our second decade at Altair, we extend our heartfelt gratitude to our clients and colleagues,
many of whom have been with us since we opened our doors in June 2002. That summer, the future was filled with uncertainty.
In the months leading up to Altair’s formation, our principals, formerly the nucleus of the Investment Advisory Services
practice of Arthur Andersen’s Chicago office, were thrust into the chaos of the Andersen crisis. It was a watershed moment
where we were forced to make a decision: Do we make the safer career move and go work at another large institution or do we
take a leap of faith and build the business we want for ourselves and our clients? We took the leap.
We built a firm based on our core belief that the only investment advisory model that is truly independent and aligned
with the interests of the client is one that is free of ties to any money managers, brokers, custodians, analysts or investment
bankers. Our clients shared our convictions and their faith in our abilities has enabled us to grow this firm to over $3 billion in
assets under advisement.
Altair’s model of independence and objectivity is even more important as we look to the future. The market crisis of
2008 once again exposed the conflicts of interest and systemic risks that plague many financial institutions. As these events unfolded, we have been honored to serve as a haven for our clients and to be recognized as a firm exclusively motivated to serve
our clients’ best interests.
In the following pages, we hope to give you a better sense of who Altair Advisers is – our culture, our values and the
people and personalities that make up our firm. This is a group of incredibly committed, highly credentialed individuals. As I
look back over the past 10 years, I feel extremely fortunate to have been surrounded by such an exceptional group of colleagues.
In the past few years, Altair has experienced banner growth led by referrals from our clients. We view these referrals as
confirmation of the value we bring to clients and we deeply appreciate the trust and confidence they represent. In return, our
growth and success provides significant benefits for our clients, including increased access to select investment
opportunities, enhanced negotiation powers that directly lower management and custody fees and, critically, expansion of our
staff to continuously improve our service delivery.
We are thrilled to have reached this 10-year milestone and even more excited about the next decade. To those who
have stood with us from the beginning and shared our passion, thank you. We are honored to serve you. To those looking to
learn more about Altair, we invite you to come to our office and meet with us. There is no better way to gain an understanding
of who we are and the values we represent.
Warm regards,
Steve
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the altair
Left to Right: Front Row – Don Sorota, Jason Laurie, Jason Lister, Rebecca Gerchenson, Richard Black,
Steve Weinstein, Bryan Malis, Rebekah Kohmescher, Michael Murray, Brett Rentmeester
Second Row – Damon Cole, Claire Browne, Paul Courtney, Anna Stith, James Walter, Rebecca Stroe,
Joseph Alexander, Denise Turcott, Aaron Dirlam, Matthew Gaines, Paulette Stephenson
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advisers team
Third Row – Daniel Tzonev, Anna Nichols, Clare Sather, James Shen, Olga Yudina, Jason Schultz,
Megan Babowice, Michael Russin, Adriana Haro, Lauren Macias, Jason Carr, Katarzyna Solarczyk,
Michael Roncone, Sean Morrison
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Altair is...
dedicated to independent and objective counsel
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Jason Laurie and Bryan Malis
t
he only compensation we receive is for providing
investment advice.
Jason – When I started out in financial services,
I remember how excited I was as a young intern
at a large firm to learn that I would have the
opportunity to work with their best broker.
I thought this would give me an opportunity to
really learn the technical aspects of investing.
I was shocked to find out that by “best” they
meant that this person sold the most products.
It had nothing to do with his advice resulting in
superior portfolio performance or a better outcome for the clients; those things were immaterial.
In 1997 I read an article featuring Steve
Weinstein in the Chicago Tribune where he
emphasized the importance of paying for
objective investment advice and then measuring that advice by end
performance. It took direct aim at the product sales model and instead
placed all the value on technical investment skills. It resonated with
me and so I reached out to Steve. I sought out this model.
Bryan – Those core beliefs in the importance of independent and
objective investment advice influence every aspect of our firm infrastructure. When we set up the firm, we structured staff compensation to
prevent conflicts of interest and ensure our advice is not influenced by
other factors beyond a client’s financial goals. We have no proprietary
products to push, we do not accept commissions for using specific asset
managers and we have no fee-sharing or soft-dollar arrangements with
other service providers.
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Jason – This gives us tremendous flexibility in our investment decisions.
We are not locked into specific managers in any asset categories. We
continuously evaluate new options and we have the freedom to make
manager changes whenever we feel it is in the best interest of our clients.
Bryan – Our fees are also structured to ensure our recommendations are
not biased. We charge one set fee for managing the client’s total portfolio.
We do not have separate fee schedules for different asset classes as that
can serve as an incentive for recommending a riskier portfolio. The only
factors that influence a client’s portfolio mix are the client’s particular
situation, preferences, risk tolerance and long-term financial goals.
Jason – Large institutions will argue that paying for investment advice is a
fee on top of a fee. They promise to provide manager selection and
When we set up the firm, we structured compensation
to prevent conflicts of interest.
handle custody and then throw in the investment advice for free. But that
advice is not objective because the firm is incentivized to use specific
products and partners. The advice may be “free” but those monetary
incentives are a central part of their revenue model and can influence their
recommendations.
Jason Laurie, Managing Director
Art fair aficionado, seafood fanatic, long-time East Lakeview resident,
former summer boat captain and tour guide
Bryan Malis, Managing Director
Enjoys family time, traveling, gardening, new gadgets, chocolate, and all
things baseball
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From Top: Clare Sather,
Anna Nichols; Paul Courtney,
Aaron Dirlam
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Altair is...
aligned with your interests
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Rebecca Gerchenson and Jason Lister
O
ur responsibility, and our legal obligation as
fiduciaries, is to put your interests first.
Jason – One of the things that attracted me to Altair when I initially
interviewed in 2007 was that their culture of motivation and incentives was
starkly different from other financial institutions. Altair serves as a
fiduciary, not a broker or a product provider. As such, our job and our
legal mandate are to always act for the sole benefit and interest of our
clients. We have no other competing responsibilities.
Becca – I was also pretty swept off my feet by just
how different the culture is here towards the
responsibility to our clients. People here are very
passionate about helping their clients make the best
financial decisions possible. It’s their solitary focus
and there are no distractions. From the point of
personal integrity, the very purity of Altair’s model is
extremely compelling.
Jason – It isn’t that people are not passionate at
other firms. At many financial institutions people
want to be good advisers but unfortunately, they are
not incentivized to do so. It makes it hard to do
right by your client because the very structure of the organization is
against you.
Becca – That is an advantage Altair had in building from the ground up.
Our internal processes are organized to support our core values of objectivity and independence, and we developed a compensation structure that
encourages collaboration across the firm.
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Jason – And it has been successful. People are happy working here in
large part because it is collaborative. The firm recognizes that the best
creativity and problem-solving for clients comes from the pooled wisdom of
our professionals.
Becca – When clients work with us, they are tapping into the knowledge
and experience of 34 people as opposed to a single adviser. This is far
better for the client and we tend to attract clients who value our intellect
and appreciate this collaborative approach to client servicing.
Jason – Our client retention rate of 95%+ across the past five years is a direct testament to our clients’ trust in our work, and trust has to be earned.
As a fiduciary, we are held to a higher standard, and as such we enter into
People here are very passionate about helping their clients
make the best financial decisions possible.
every client relationship with the intention of serving as the trusted adviser
for multiple generations.
Becca – There is a pride that comes with serving clients in this capacity.
I work with people I respect, they seek out my input and I am continuously
exposed to new ideas by my colleagues. Altair has fostered an environment
that is both personally and professionally rewarding and I go home at the
end of each day feeling good about the work we do for our clients.
Jason Lister, Director of Client Reporting and Operations
Father of three boys, soccer coach, baseball coach, Cub Scout den leader
Rebecca Gerchenson, Senior Consultant
Enjoys reading, design, the ocean, and spending time with her husband and
their dogs
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Top to Bottom: Rebekah Kohmescher, Bryan Malis,
Jason Laurie, Steve Weinstein; Brett Rentmeester,
Michael Murray; Paulette Stephenson
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O
Richard Black and Daniel Tzonev
ur investment team includes attorneys, CPAs, CFAs and CFPs who
are cross-trained in a wide range of financial planning disciplines ensuring our advice
complements your full financial picture.
Richard – No one’s investment portfolio exists in
a vacuum; it is one part of a client’s larger financial
picture. The wide range of educational and professional backgrounds on our staff gives us the ability
to evaluate a client’s full financial planning needs
and provide holistic, integrated investment advice.
Daniel – Typically our clients have complex wealth
management needs that require knowledge across
multiple disciplines. A formulaic approach to their
asset allocation is not appropriate. Rather we evaluate the individual circumstances of every client cash flow requirements, time horizon, risk tolerance,
tax issues and other illiquid holdings, often real
estate, private equity or a family business – to create
a customized asset allocation. In most cases, this
includes a thorough review of the client’s current
financial structure to ensure our investment advice
complements the rest of their planning.
Richard - This means we are usually in close contact with our client’s other advisers and that is where our crosstraining provides the greatest benefit. We work well with other advisers because we understand their strategies, tools
and techniques. We do not try to do their jobs, but collaborate with them to create a cohesive plan for the benefit of
our client.
Daniel – Our understanding of multiple disciplines also enables us to be an issue spotter. We recognize when
something is off or if an opportunity in tax or financial planning is being overlooked. For example we recently
worked with clients to ensure they were taking advantage of the Roth conversion window and what could be an
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exceptional opportunity for gifting. The latter is an estate
planning issue and while we do not create trust structures
directly, we know the options available to the client and
we serve as a second set of eyes raising the issues that need
to be on their radar screen.
Richard – In many instances we also help our clients
build out their team of advisers. Whatever the need attorney, accountant, banker, insurance broker, or even
actuaries to create customized retirement plans - we can
recommend experts and outline the standard costs and fee
structures for working with them. Furthermore, Altair’s
senior executives have powerful extended networks. We
can directly reach the people who are at the top of their
field and can access their expertise on behalf of our client.
Daniel – Clients know that we recommend professionals
that we would hire for ourselves if it were our family or our
own need.
Richard – We’re proud that our clients look to us for
help across so many disciplines. Initially, people hire us to
be their investment adviser but over time we earn our way
into the role of trusted adviser on a wide array of financial matters. So whether someone is wrestling with an issue
that is truly investment-focused or they need help recognizing the best way to structure a partnership agreement,
transfer ownership of a family property to their children or develop a meaningful philanthropic strategy, we have the
experience and expertise across our team to help them get the right answers.
Richard Black, Managing Director
Husband, father, outdoorsman, philanthropist, globe trotter, and occasional Montana resident
Daniel Tzonev, Senior Consultant
Avid runner, reader and father of three girls
Altair is...
organized to meet your needs efficiently and effectively
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Claire Browne and Aaron Dirlam
w
e continuously reinvest in our business operations to
maximize our service value to clients.
Claire – A client can evaluate an investment firm by their back-office operations.
How does the firm make investment decisions? What is their process and does it
have the integrity required to be successful over the long term?
Aaron – Altair has made an ongoing investment
in our operations and back-office systems. We
have taken the time and committed the resources required for creating efficiencies and solutions that benefit the firm and our clients.
Claire – When the firm was founded, one of the first operational decisions was, do
we buy research from a third party or build out a team to do our own research? We
decided to do our own research. We wanted the ability to fully vet different options
and look at investment opportunities from every possible angle. It has proven to be
a huge strength for us and a tremendous benefit to our clients who often have
unique needs that are not adequately addressed by third-party research groups.
Aaron – Our decision to offer to take discretion for clients in 2010 was another
significant business decision. When a client gives us discretion over their portfolio, meaning we not only advise on
their investment strategy but implement that strategy on their behalf, they maximize our value as an investment adviser
because they enable us to rapidly respond to changing markets and take advantage of imbalances and inefficiencies.
Claire – All these operational decisions translate to direct savings for our clients. The more efficient we are
administratively, the greater our ability to negotiate fees with managers and service providers. We pass on those
fee savings fully and directly to our clients.
Aaron – In investments, net gains are a factor of both returns and costs. When our internal efficiencies enable us to
save clients six to eight basis points here and there, that is extremely significant. It is yet one more way that clients
benefit from Altair’s strong internal capabilities.
Claire Browne, Manager of Investment Operations & Compliance
Enjoys traveling, trivia and spending quality time with family and friends
Aaron Dirlam, Director of Research
Enjoys the outdoors and spending time with his wife and kids
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Altair is...
united in ensuring your success
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Rebekah Kohmescher and Donald Sorota
a
s firm owners, our long-term success is aligned with
that of our clients.
Beka – In most cases, a new firm is established under the name, ownership and authority of the more senior professionals. In our case, the
original owners came together and recognized that our differences – in
background, experience, age and generational perspective – were
strengths. So on Day One, we made this financial and career leap that
united us together as a team.
Don – It’s true, most people don’t have the same history and dependency on their colleagues. We have all placed
our individual success in the hands of our partners. We are a team and this is
our business. We are passionate about it and all of us are excited to be here
working together.
Beka – From the client’s perspective, our approach is tremendously valuable.
You are not just working with employees but owners.
Don – Our level of customization and client servicing would never be
feasible in a corporate setting. Most client advisers have to account for their
time to a parent company or they have to produce profit margins that keep
shareholders happy or make the firm attractive to investors. We only answer
to our clients so we can choose to provide this level of customization.
Beka – We are building an independent firm to last in perpetuity and that goal serves our clients well. As owners,
we have “skin in the game.” This is our career, our reputation, our financial and personal investment. If we serve our
clients well and we build successful, long-term client relationships, then our firm - our investment - also will grow.
Rebekah Kohmescher, Managing Director
Loves Hilton Head, SC; reading library books on an iPad and running half-marathons
Don Sorota, Managing Director
Father, new world red wine oenophile, passionate college basketball fan, long-suffering Chicago Cubs season-ticket holder
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Altair is...
structured for a strong future
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Michael Murray and Matthew Gaines
a
ltair’s leadership spans multiple generations,
ensuring consistent, high-touch, personalized services for
clients well into the future.
Mike – The most exciting aspect of reaching our 10th anniversary is
that we are at the beginning of our business. For a high percentage of our
firm owners, retirement is decades away.
Matt – And our youthfulness is a real asset for our clients. Many have
wealth that will surpass their lifespan. They see owners and young
professionals on our team as a strength and take comfort in our long-term
sustainability. Clients are working today with the people who will be here
to serve their children.
Mike – Although many of our firm leaders are young, we’re well-seasoned.
In the short timeframe since Altair was founded, we have successfully
helped our clients navigate two of the four worst bear markets in history.
Matt – Part of the reason we have navigated rough markets so well is our
thought leadership and creative investment approach. On the whole, we
tend to be cautious and we take measures to protect our clients from
downside loss. We are also a very intellectual firm and we are willing to
buck the traditional rules for evaluating a manager and look at investment
options with fresh eyes. Our willingness to be contrarian and go against
the herd has served us well.
Mike – We can take this approach and make independent decisions with
confidence because we do all the due diligence ourselves. You cannot rely
on what others tell you in this industry, you have to do the research yourself and battle-test all the options.
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Matt – In 10 years we have grown from a local to a national brand; now
40% of our clients are from outside Chicago. With more than $3 billion in assets under advisement, we have the critical mass to bring amazing opportunities to our clients and we plan to continue to expand our
footprint in the marketplace.
Mike – We want this firm and what it stands for to outlive us as founders.
We went into this together to build a business that will last in perpetuity
and we have never lost sight of that goal.
Matt – That means we can never get too comfortable or too confident.
The investment markets are humbling and always changing. At Altair
employees are encouraged to continuously question and evaluate every
What is exciting about our 10th anniversary is that we
are at the beginning of our business.
investment decision to ensure our clients’ success in a constantly
changing world.
Michael Murray, Managing Director
Recent father, NFL franchise owner, enjoys spending time in Northern
Wisconsin
Matthew Gaines, Consultant
Passionate University of Wisconsin sports fan, heavily involved in
charitable work, enjoys the outdoors, live music and new dining experiences
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Top: Richard Black, Steve Weinstein;
Lower Left: Matthew Gaines;
Lower Right: Joseph Alexander
Bottom: Jim Walter
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Altair is
...
Managing Directors
Steven B. Weinstein, CFA®, CFP®
President & Chief Investment Officer
Richard K. Black, CFP®
Managing Director
Rebekah L. Kohmescher, CFP®, CPA
Managing Director
Jason M. Laurie, CFA®, CFP®
Managing Director
Bryan R. Malis, CFA®, CFP®
Managing Director
Michael J. Murray, CFA®, CFP®, CAIA®
Managing Director
Donald J. Sorota, CFP®, CPA
Managing Director
Consultants
Rebecca E. Gerchenson, CFA®
Senior Consultant
Daniel L. Tzonev, CFA®
Senior Consultant
Joseph F. Alexander, CFP®
Consultant
James Shen , CAIA®
Research Analyst
Investment Operations
Jason D. Lister, CFA®, CIPM
Director of Client Reporting & Operations
Claire C. Browne
Manager of Investment Operations & Compliance
Denise G. Turcott
Client Operations Analyst & Team Leader
Anna M. Stith
Senior Client Operations Analyst
Adriana Haro
Performance Analyst
Sean E. Morrison
Performance Analyst
Jason E. Schultz
Client Operations Analyst
Katarzyna B. Solarczyk, CPA
Client Operations Analyst
Olga Yudina
Investment Operations Associate
Firm Administration
Matthew A. Gaines, CFP®
Consultant
Anna E. Nichols
Director of Communications
Thomas C. McWalters
Consultant
James J. Walter, CPA
Director of Administration & Controller
Megan Babowice
Client Service Assistant
Paulette V. Stephenson
Office Manager
Jason D. Carr
Client Service Assistant
Clare E. Sather
Marketing Coordinator
Michael Roncone
Client Service Assistant
Damon E. Cole
Administrative Assistant
Research
Firm Contact Information
Aaron D. Dirlam, CFA®, CAIA®
Director of Research
Altair Advisers LLC
303 W. Madison Street, Suite 600
Chicago, IL 60606
Phone: (312) 429-3000
Fax: (312) 429-3029
Paul S. Courtney, CFA®, CAIA®
Senior Research Analyst
Dave Carpenter
Investment Communications Analyst
Michael B. Russin
Research Analyst
www.altairadvisers.com
k
AlTAir AdviSerS
A LTA I R A DV I S E R S LLC
303 W E S T M A D I S O N S T R E E T
S U I T E 600
C H I C AG O, I L L I N O I S 6 0 6 0 6