Blue Ridge AM sets out to increase customization for low-tier millionaires. Three former BB&T investment managers have broken away to establish Blue Ridge Asset Management, a Raleigh, N.C.-based boutique that aims to provide customized advisory and investment services to affluent individuals and small institutions.

David Arthur, who was in charge of high-net-worth portfolio managers in BB&T's wealth-management unit, and Shawn Gibson, formerly head of alternative investments at BB&T Asset Management, founded Blue Ridge this past fall. Keith Karlawish, president of BB&T Asset Management until he left in the wake of a late-2008 re-organization at Winston-Salem, N.C.-based BB&T, joined them a few weeks later.

Access to managers

"Our goal is to deliver objective and sophisticated advice on a fully discretionary basis to individual and institutional investors that typically have at least $1 million in investable assets," Blue Ridge says in a "Firm overview" blurb on its website. "Rather than trying to force our clients into pre-defined solutions or products, we develop a customized investment plan for each of our clients that includes carefully constructed portfolios using a disciplined investment process."

Focusing on clients with between $1 million and $10 million in investable assets, and working with planners, accountants, attorneys and others, Blue Ridge hopes to have $75 million in assets under management by the end of this year. It differentiates itself from competitors in the low-tier millionaire segment by emphasizing a hands-on approach to portfolio construction and management.

The kind of client it seeks to serve "typically [talks] to salespeople, not investment professionals," Arthur told the Raleigh News & Observer. "People are looking for an adviser that will be more proactive, given the market we're in."

Also with an eye to recent market conditions, Blue Ridge emphasizes volatility management as fundamental aspect of risk management.

In addition to its headquarters in Raleigh, Blue Ridge has an office in Glen Allen, Va.

Community-bank aggregator BB&T has more than 1,500 branches in 11 states and in Washington, D.C. -FWR

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