Grey Owl Capital Management, a Virginia-based investment management firm, has opened ‘Opportunity Strategy’ for new clients. Reportedly, it provides a back-to-basics investment approach focused on identifying mispriced securities with the opportunity for outsized gains.

It has been reported that the firm’s ‘Opportunity Strategy’ is for clients with a $250,000 minimum initial investment and a 3-5 year minimum investment time horizon.

Eric Brugel, co-founder, said: “Wall Street investment firms are emphatically designed to distribute investment product, not to provide best-in-class investment advice. This was certainly evidenced by the packages of sub-prime assets these banks sold to institutional and high-net-worth clients which have recently dominated the news. It is equally supported by the application of a misguided investment approach for retail clients based on a flawed academic theory that is inconsistent with the real world.”

Jeff Erber, co-founder, said: “Over the past ten years, the US stock market has essentially provided zero return and we just saw a period where all assets except cash and US Treasuries lost a significant amount of value at the exact same time. Yet, most ‘wealth managers’ continue to tell their clients to build broadly ‘diversified’ portfolios that ignore valuation and focus instead on statistical artifacts like volatility and asset correlation, pretending they have some meaningful relationship to return.”