Fisher Investments to move headquarters from Camas for Plano Texas (fit in, sales)

[MtnSurfer]

I wonder what the impact will be to the local economy and jobs since Fisher Investments is a big local employer? Not only will they be moving their headquarters, but they will also be shifting hiring practicing toward the new headquarters according to a recent statement. Interestingly, I have a local friend who works for Fisher Investments who recently moved his family to TX. I wonder if this tax ruling was more of a final straw of something already going in that direction? He seemed to see the writing on the wall.

Protesting WA’s capital gains tax, Fisher Investments says HQ moving to Texas

Derek

[StealthRabbit]

If you've spent much time with Ken, you note this is probably a 'he' moment, as a marketing gem to his HNW clientele.

He has some very talented staff and research operations, but doubt he pays many of them $250k+, certainly not the grunts who are cranking out the research that attract clients.

I would guess in his case, it's posturing to a society where he will be more highly revered, as he burnt a lot of bridges since he arrived in SWWA. He certainly does not fit in with PNW, and especially Camas culture. He'll be very glad to leave this chapter behind.

For general businesses and earners.... I can see the new tax ruffling the feathers of several Camas entrepreneur / franchise creators and owners / business development movers and shakers.... But they can afford it, (they can just add another enterprise to cover the tax hit) and their families may force them to stay in WA through school age. (Ken has made it very clear where his family priorities end). The tax certainly is not good for high earners (who create a lot of jobs and revenue. So WA is proudly stepping on their own toes, as usual. We're just a miniature CA, so it will catch up to us, but we (WA) are proud of our choices, so will never recognize our errors. And we're big enough to not care

It's the prevalent attitude... You don't like it? Leave! Simple and impractical as that!. Beats having to think through, and make the right decision. This was the simple decision, perfect for majority voters who care only about Number One. They have no concept or concern beyond their nose and wallet. Stay tuned for more californication of all western states. Don't like it... leave, plenty of people banging on the door of your home and office who will gladly fill your spot.

Just how it is here, now and likely forever.

It's changed +/-.
It will continue to change, but not towards responsible and concerned citizenry.

[texasdiver]

I'm surrounded by Fisher Investment guys here in Camas. In the neighborhood. Other parents on my kid's soccer team. Husbands of my wife's co-workers. For some reason it is all guys.

There is no way ANY of them will be hit by any kind of capital gains tax. Not even close. Plus he just built a brand new building.

Word is, he already moved himself to Texas. He'll probably just open up some office there and call it is corporate HQ and leave the day to day operations where they are. Moving a big company is an expensive proposition. Especially when there is no obvious reason for it. And I bet a ton of his people would quit rather than move to Dallas. Perhaps even open up their own shop here.

[StealthRabbit]

Originally Posted by texasdiver

I'm surrounded by Fisher Investment guys here in Camas. ... For some reason it is all guys.

We all know why it's only men .

...I bet a ton of his people would quit rather than move to Dallas. Perhaps even open up their own shop here.

We all know this is impossible (and illegal in the finance business) They are under very strict do-not-compete clauses and Ken is very forceful about his intellectual property (staff). It would be very hard for them to equate their financial research without bridging proprietary models. and...this didn't happen overnight.

Fisher Investments manages over $192 billion* in assets. Fisher Investments maintains three principal businesses: the Private Client Group, Institutional Group and 401(k) Solutions.

[texasdiver]

Originally Posted by StealthRabbit

We all know this is impossible (and illegal in the finance business) They are under very strict do-not-compete clauses and Ken is very forceful about his intellectual property (staff). It would be very hard for them to equate their financial research without bridging proprietary models. and...this didn't happen overnight.

Fisher Investments manages over $192 billion* in assets. Fisher Investments maintains three principal businesses: the Private Client Group, Institutional Group and 401(k) Solutions.

Actually the Washington Legislature recently passed prohibitions on non-compete clauses. I think the current threshold is about $120,000 so any employee earning less than that is not bound by non-compete clauses. Or they aren't enforceable as the case may be. And if the job is being moved to Dallas or they get fired I expect there are other challenges that could be made in Washington courts that could invalidate non-compete clauses for higher earners than $120,000.

So it is unlikely that Fisher could enforce non-compete clauses here in Washington State. Most of his employees get paid less than the threshold.

And the proprietary financial model business is mostly marketing. Fisher doesn't do any better than generic index funds. They got to $192 billion in assets by hiring a massive aggressive sales staff, not because they have some secret sauce that is better than Vanguard or Fidelity.

[Pomelo]

I would not be surprised if Fisher Investments’ business itself is in decline due to the huge general underperformance of active fund managers compared to passively managed index funds.

[StealthRabbit]

Fisher investments is in no way a Vanguard or Fidelity. Their bread and butter growth was from management of corporate and institutional 401k and internal retirement management. Their personal management for $500k minimum accts is targeted to clients who desire comprehensive financial management. +/-. Their offerings and strategy is quite different than traditional fund allocations, and the creates a dog and pony show for the vulnerable, and those who impressed with the content. There are plenty of 'needy' clients out there, and a significant economic meltdown will vastly increase those fleeing to financial managers like Fisher.

BTW, the topic implied whether there will be an exodus of HNW businesses and individuals from WA due to the recent capital gains tax. Actually there are very few operations like Fisher in the USA, and for the handful in WA... The ownership may exit, but the consequences to the operation or it's employees is small. Resulting in minimal collections of the new capital gains tax. Some HNW individuals from WA will just declare another domicile, such as SD or a USA protectorate.

Fisher (and Musk) had a statement to make by relocating to Texas, that was good for their image and business. If Ken finds a commercial RE investor that will take his Camas office for a net gain, and grow Fisher's assets, I expect he would take the deal and let the WA employees fend for themselves. If the RE deal covered a few willing transfers to TX, Ken is keen enough to harvest the positive press he could receive. I'm very surprised he's still in business, but there are a lot of gullible people, and USA is very forgiving (or forgetful). The surprise is growing and retaining his corporate and government clients. That's very telling of our society, and who's got the control.

[texasdiver]

Originally Posted by StealthRabbit

Fisher investments is in no way a Vanguard or Fidelity. Their bread and butter growth was from management of corporate and institutional 401k and internal retirement management. Their personal management for $500k minimum accts is targeted to clients who desire comprehensive financial management. +/-. Their offerings and strategy is quite different than traditional fund allocations, and the creates a dog and pony show for the vulnerable, and those who impressed with the content. There are plenty of 'needy' clients out there, and a significant economic meltdown will vastly increase those fleeing to financial managers like Fisher.

BTW, the topic implied whether there will be an exodus of HNW businesses and individuals from WA due to the recent capital gains tax. Actually there are very few operations like Fisher in the USA, and for the handful in WA... The ownership may exit, but the consequences to the operation or it's employees is small. Resulting in minimal collections of the new capital gains tax. Some HNW individuals from WA will just declare another domicile, such as SD or a USA protectorate.

Fisher (and Musk) had a statement to make by relocating to Texas, that was good for their image and business. If Ken finds a commercial RE investor that will take his Camas office for a net gain, and grow Fisher's assets, I expect he would take the deal and let the WA employees fend for themselves. If the RE deal covered a few willing transfers to TX, Ken is keen enough to harvest the positive press he could receive. I'm very surprised he's still in business, but there are a lot of gullible people, and USA is very forgiving (or forgetful). The surprise is growing and retaining his corporate and government clients. That's very telling of our society, and who's got the control.

I am not saying Fisher Investments is the same as Vanguard or Fidelity. I understand completely what they are. What they actually are is just a high-end version of Edward Jones.

What I am saying is that their so-called proprietary "secret sauce" algorithms that you speak of are mostly just marketing nonsense. Since their proprietary funds don't do any better over the long term than generic plain-Jane index funds from Vanguard or Fidelity. Especially after you account for their AUM fees.