Waterloo Capital is fee-based network of financial advisors who specialize in working with individuals and high-net-worth individuals, who make up a majority of its individual clientele. With headquarters in Austin, Waterloo Capital is on SmartAsset's top financial advisor list for the city.
Waterloo Capital offers its services through a network of investment advisor representatives (IARS), who may have their own businesses under different names, including AMG Wealth Advisors, Eberly Wealth Management, LLC and Lighthouse Financial Advisors, among others.
Waterloo Capital Background
John Chatmas is the owner and CEO. With a degree in finance from the University of Texas at Austin, he has worked for Smith Barney, Morgan Stanley and Morgan Keegan & Company Private Client Group. He acquired Virtus, which became Waterloo Capital Management, in 2012.
The team at Waterloo Capital and its IARs includes advisors with various professional certifications, including chartered financial analyst (CFA) and chartered retirement planning counselor (CRPC) designations.
The firm's executive team holds a lot of experience. Bennet Woodward, chief investment officer, has worked at ING, GLOBALT and Raymond James and co-founded Black Diamond Investment Partners. Donald Simoneaux, director of alternative investments, previously worked at Cambridge Associates, where he specialized in private equity and venture capital.
Waterloo Capital Client Types and Minimum Account Sizes
As noted earlier, Waterloo Capital serves individuals above and below the high-net-worth threshold. The firm also offers services to"
- Trusts
- Estates
- Retirement accounts
- Pension and profit-sharing plans
- Charitable organizations
- Corporations and other business entities
To open an account, you generally need at least $1 million dollars. The firm, though, may lower the requirement at its discretion or take into account a client's family members' accounts.
Services Offered by Waterloo Capital
Waterloo Capital offers investment management either through internal portfolio managers or third-party money managers. It also provides financial planning, which, comes with asset management services or can be stand-alone. Financial plans can cover such topics as estate planning, charitable planning, corporate and personal tax planning, real estate analysis, insurance analysis, business financial planning, retirement planning, family and business succession planning, education planning, mortgage/debt analysis and lines of credit evaluation.
Waterloo Capital Investment Philosophy
Like many firms, Waterloo Capital customizes investments to individual situations but primarily invests for the long term. However, the firm relies on what it calls the Waterloo Newton Algorithm to evaluate and select securities. The system monitors over 2,000 stocks and 1,000 ETFs, using sophisticated quantitative methods to assess each security based on macroeconomic, fundamental, and technical criteria.
By analyzing data such as market prices, trading volumes, and interest rates, the Newton Algorithm provides daily forecasts of asset prices across various timeframes. Designed to identify high-probability outperformers, Newton also aids in risk management by pinpointing sell targets to protect against significant market downturns. The system’s outputs guide trading decisions, supported by fundamental and technical analysis.
Fees Under Waterloo Capital Portfolio Styles
Waterloo Capital charges clients who utilize its investment management services an asset-based fee, paid quarterly, in advance, through a direct disbursement.
Investment management fees at Waterloo Capital come in two versions: a standard fee schedule and a wrap-fee program. While standard investment management clients are required to cover fees associated with mutual funds, separate managers, broker-dealers and custodians, these charges are calculated into the wrap-fee program. This of course means that the wrap-fee program is slightly more expensive than its standard counterpart.
Comprehensive asset management and financial planning clients at Waterloo are afforded a similar fee schedule to that of investment management clients. On the other hand, financial planning and consulting clients are subject to hourly fees, fixed fees or a combination of the two.
| Waterloo Capital Fees | |
| Service | Fees |
| Standard Investment Management | Maximum annual fee: 2.00% |
| Investment Management Wrap-Fee Program | Maximum annual fee: 2.50% |
| Comprehensive Asset Management and Financial Planning | Maximum annual fee: 2.00% |
| Financial Planning and Consulting | Hourly or fixed fee that's negotiated |
Waterloo Capital's maximum fee for standard investment management is nearly double the industry average of 1.02%, according to an AdvisoryHQ report from 2023. That said, Waterloo will negotiate its fees. Learn more about advisors' typical costs here.
What to Watch Out For
The firm reported no legal or disciplinary action in it latest filings with the Securities and Exchange Commission.
Two things to note: Some advisors may be brokers or insurance agents, who collect transaction-based fees or commissions. These can pose a conflict of interest. Also, Waterloo Capital has an economic interest in Intelligent Wealth Solutions LLC, which is an affiliate and which Waterloo Capital may recommend to clients as a manager of separate accounts. This is also a potential conflict of interest. That said, Waterloo Capital is legally bound by its fiduciary duty always to work in its clients' best interests.
Opening an Account With Waterloo Capital
The easiest way to contact the firm initially is to send it a message with your email on its website. Alternatively, you can call (512) 777-5900.
All information is accurate as of the writing of this article.
Tips for Financial Planning
- It's been said that a goal without a plan is only a dream. For help devising a plan so you can achieve your financial goals, consider hiring a financial advisor. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Are you investing enough? It's hard to know. SmartAsset’s investment calculator will do the math. You just have to tell it how much you’re starting with, how fast you expect your nest egg to grow and how long you want to invest - and the calculator will help you figure out how much more you need to sock away every year to reach your savings goal.
