First Principles Investment Management LLC

The firm provides discretionary asset management and fixed-fee financial planning to individual clients, managing roughly $7.0 million across about 26 accounts. Services include tailored portfolio construction, ongoing monitoring, and written financial plans that cover retirement strategy, tax-aware planning, risk management, and cash-flow analysis.

Investment decisions are guided by fundamental analysis and customized asset allocation based on each client’s objectives, time horizon, and risk tolerance, with the adviser typically exercising discretionary trading authority to implement the plan. Accounts are reviewed at least quarterly, performance reports are provided regularly, and custody and trade execution are handled through an electronic custodian.

A distinctive feature is the firm’s performance-fee program for eligible clients—those meeting minimum asset and net-worth thresholds—under which eligible accounts pay a lower base management rate plus 20% of returns above an agreed benchmark or hurdle, with underperformance carried forward and annual calculation; this arrangement is uncommon among independent advisers. The firm also charges a fixed fee for comprehensive financial planning and discloses that its principal holds a CFA and performs an external executive-education role (about 10% of time), described as an unrelated activity with no crossover clients.