Florida Trend: Investing Intelligently for the 21st Century

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Financial advisors remain a key factor in successfully planning one’s financial future, and yet conflicts often arise when the advisor’s compensation is tied to sales and commissions. Horan Capital Management sees the flaw in this equation and has built an entirely new way of doing things, starting with fee-based financial advice.

Chairman, CEO and Senior Financial Advisor Patrick J. Horan has been providing financial advice for 32 years and developed the idea for Horan Capital Management (HCM) after working for a major Wall Street firm. He saw the way financial advisors were tied to the sales they produced, and he decided to create a business plan that was more beneficial to the client.

“I started my own firm in 1995 because I didn’t want to work on a sales basis, selling products to people and earning commission,” Horan says. “I wanted to be a fee-only advisor, because those types of advisors provide objective advice to clients. We’re not pushing products, and our advice is free from conflicts of interest.”

HCM provides a six-step investment process for its clients, starting with evaluating financial needs and ending with daily portfolio monitoring and periodic client reviews. The firm’s financial advisors are not only objective, they have a solid and widespread background in investment practices.

HCM integrates financial planning services with their proprietary wealth management process called “Intelligent Investing for the 21st Century,” to deliver measurable results to clients.

“We’re going to provide objective advice for every variable that you could possibly think of so that our clients achieve their short, intermediate and long term financial objectives,” Horan acknowledges.

HCM also shifts the focus from asset allocation, which Horan says is a flawed strategy. Over the last 20 years, markets and economies have become much more correlated and global in nature, which makes tactical asset allocation obsolete.

Horan points to the 2008-09 financial crisis as proof.

“Virtually every asset class imploded, had negative returns and big draw-downs during the financial crisis. Asset allocation was supposed to help protect against declines in values across the board; but it didn’t work” Horan says. “A lot of the investment theories out there these days are flawed because they haven’t been updated to reflect current markets and trends.

“I want to make sure my clients are making the right investments at the right times for the right reasons,” Horan says. “I think a lot of advisors are afraid to really advise people for fear that they’re going to be wrong. I don’t have that fear because our investment philosophy is based on fact. We look at facts, and we look at numbers. We are very disciplined and analytical. Most of all we help clients develop reasonable longer term expectations for growth and preservation of assets.”

HCM uses TD Ameritrade, Charles Schwab and Co., and Fidelity Investments, all national discount brokerage firms which provide physical custody of assets, brokerage services, account maintenance are reporting services including online access to account. The firm’s average new client relationship is over $million of investment assets, and Horan believes that the firm’s attention to client service separates them from other advising firms on the market.

HCM was featured in Barron’s list of top 100 independent financial advisors in America (out of 22,000 registered advisors) and in Worth magazine as the top 250 best financial advisors in the country. The firm has earned a spot in the Bloomberg Weath Management Top Dog list for the past nine consecutive years.

Horan states, “We’re really on the cutting edge of planning and investment advice.”

–Ashley Cisneros
Ashley Cisneros is a co-founder of Chatter Buzz Media, an Orlando Internet marketing firm that helps companies and organizations engage with their target markets through inbound marketing via the Internet. Chatter Buzz Media, which won the Social Madness competition for the Orlando small business market, is a full-service digital marketing firm specializing in website design, search engine optimization (SEO), social media marketing and content creation. Prior to founding Chatter Buzz, Ashley worked as a newspaper reporter, magazine editor, technical writer, marketing manager, public relations practitioner and freelance journalist. To see Ashley’s content writing, visit www.ashleycisneros.com. You can also reach Ashley on her Google profile.

About the Author:

Ashley Cisneros Mejia is a journalist, entrepreneur and marketer. She began her career as a newspaper reporter and later as an editor at Florida Trend business magazine. Ashley has worked as a professional freelance writer since 2009, as a technical writer, marketing manager, and public relations practitioner. She also founded two digital marketing agencies in Orlando. Named one of Orlando’s 40 Under 40 and honored by the Women’s Executive Council of Orlando for achievements in media and communications, Ashley earned a B.S. in Journalism and an M.S. in Entrepreneurship at the University of Florida.

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