The Enduring Value of Bespoke Investment Management

In a world where automated portfolios and investment through large technology platforms is increasingly common, bespoke investment management continues to offer a compelling proposition for individuals and families seeking a more personalised and thoughtful approach to investing.

Importantly, this discussion is not a promise of future performance. Investments can go down as well as up, and clients may not get back the amount invested.  Instead, this piece sets out the reasons why many clients choose a bespoke approach: a combination of economic rationale and human motivations that, taken together, form a powerful case for personalised investment management.

Economic Rationale versus Human Motivation

Economic rationality is a core concept of economic theory which assumes humans make decisions which maximise economic utility.  In other words, humans will take financially rational decisions which benefit them most.

While being one of the most important assumptions in economics, depending on its interpretation, it may well be the most flawed.  If economic rationality means quality of life and physical and emotional wellbeing, it is a powerful gauge of human incentive yet incredibly hard to measure.  However, if it means that all decisions are reduced to the “bottom line” of maximising pounds and pence, it’s measurable, and nonsense.  In a sense, this confirms George Box’s assessment that “all models are wrong, but some are useful”.

The trusty Ford Fiesta will usually deliver you to your destination taking the same time as a Ferrari, yet people still buy Ferraris.  Most sports fans back teams which are unlikely to ever win the league but endure continued disappointment out of local loyalty or love of an underdog.  How many of us have placed a bet on a horse race because the thrill of being invested in one of the competitors outweighed the fact that statistically, the expected return on the bet is negative?

So how should we translate this core concept into Investment Management?

The Pounds and Pence Argument

A simple approach to understanding utility in investment is to assume that the investor is economically or financially rational.  The purpose of investing is to achieve a financial objective while minimising risk, often for as little cost as possible.  At its core, this summary includes the most important purpose of investing and standardised and bespoke approaches are right to focus on it.

However, even with this simple understanding, there are problems.  For a start, the financial objective can differ.  Is the client aiming to make more money (an absolute return like CPI+), more money than someone else (a relative return), or simply sleep at night with the prospect of making some money?

The next challenge is understanding risk.  The true risk is failing to meet the objective, but for many professional investors and regulators, volatility is the main risk as this is more easily measured.  Beyond this, how should one account for more intangible risks such as reputational risk or liquidity risk?  No one likes admitting they lost money or can’t access savings when they need them, especially to one’s spouse when the mortgage is due…, and a smoking-ban lobbyist doesn’t want to be caught investing in a tobacco company.  Personal and professional reputations matter and even a simple definition rapidly becomes complex. 

As the industry consolidates, it feels like investment management for most will eventually look like retail banking services.  One will interact with a technology platform, answer a handful of simple questions, and be told that a specific mix of products is appropriate.  This approach has value if it enables greater access to savings and investment, but in standardising outcomes for the many, it may fail to consider non-financial human motivations for investing.

Intangible Objectives

Bespoke investment managers, including Ptarmigan Capital, can help clients articulate purely financial investment objectives and understand what risks matter most to them.  But they can also consider other more intangible objectives:

Reassurance Through Professional Dialogue

Markets can be unpredictable, and economic conditions can change rapidly.  As Seneca noted, “we suffer more often in imagination than in reality” and having access to an experienced investment professional who understands the analysis behind the underlying investments, why they have been pieced together to build a portfolio, and the client’s circumstances, can provide reassurance during periods of uncertainty. These conversations often bring clarity, context, and perspective to the client.

Coordination with Other Professionals

For clients working with accountants, solicitors, trustees, or a family office, a bespoke investment manager can help create a joined‑up approach by aligning the client’s investment approach with tax planning, estate structures, philanthropy, or trust objectives, as well as managing existing holdings and exposures that cannot be sold for tax, legal or professional reasons.  Coordination does not guarantee outcomes, but it can make financial life feel simpler and more coherent.

Support Around Major Life Events

Life transitions such as marriage, divorce, bereavement, inheritance, retirement, or selling a business can be emotionally and administratively complex.  A bespoke investment manager offers continuity, can help prioritise decisions, and coordinate the investment response to changing circumstances.

Aligning Investments with Values

For clients who wish to support particular industries or business types, invest in themes, or express ethical preferences, a bespoke approach allows portfolios to reflect personal convictions.  Bespoke managers can help ensure that the investment approach and personal values are aligned in a coherent, risk‑aware manner.

Educating the Next Generation

Families often see investment management as part of broader financial stewardship, helping younger family members understand core financial principles, responsible investing behaviour, and the long‑term implications of decision‑making.  This educational support can help build confidence and create continuity across generations.

Bespoke Reporting and Communication

Some clients want granular reporting; others prefer succinct dashboards. A tailored service can provide the right level of detail, frequency, and format to make the information genuinely useful.

Supporting Complex Personal Structures

Trusts, charities, concentrated business holdings, cross‑border issues, or unique liquidity needs often require nuance. Bespoke management brings practical organisation and clarity even when the goal is simply to make complexity feel manageable.

A Sense of Partnership, Engagement, and Enjoyment

Trusted investment managers challenge assumptions, provide a sounding board, and help clients articulate trade‑offs and financial objectives.  Many clients enjoy the intellectual stimulation of discussing markets, the sense of partnership with an expert, and the feeling of being understood as an individual rather than an algorithmic profile.  The relationship becomes part of the client’s overall sense of financial wellbeing.  Some just enjoy an annual lunch!

Why Bespoke at Ptarmigan Capital?

Bespoke investment management remains a compelling choice for clients who value a tailored, thoughtful, and relationship‑driven approach which can address these more intangible objectives.  There are plenty of firms which provide this service to a high standard, but we believe we have a few features which, once widely available, are now rarer:

• A limit of ~20 clients per portfolio manager enables genuinely personal service and ongoing dialogue.  Our portfolio managers are the investment decision makers and are not relationship managers controlled by a central committee.

• Portfolios are typically built from single‑line stocks and bonds which allows us to adapt portfolios at a granular level to achieve our client’s objectives and manage their risks.

• An in‑house research capability allows independent research to support bespoke construction.  We can solve for a specific client problem, rather than looking for an off the shelf solution which solves a related problem.

• As an employee‑owned firm, Ptarmigan emphasises long‑term stewardship and commits to sharing a portion of operating profits with clients via lower fees, reinforcing alignment.

• While not providing tax or legal advice, our Multi-Family Office background means we are used to coordinating with private banks, tax advisers and estate planners and can produce consolidated reporting to make information more useful to our clients.

While investment outcomes can never be guaranteed, the combination of disciplined portfolio construction, personalised support, and meaningful human connection can support better decision‑making and help clients remain focused on what truly matters to them both financially and personally.

Risk Warning & Disclaimer

This article is provided for general information purposes only and is not intended to constitute investment advice, investment research, or a personal recommendation. It does not take into account the investment objectives, financial situation, or particular needs of any individual or entity.

The value of investments and any income derived from them may fall as well as rise, and investors may receive back less than they originally invested. Past performance is not a reliable indicator of future results. Where investments involve overseas assets, returns may be affected by movements in exchange rates.

The views expressed are those of Ptarmigan Capital as at the date of publication and are subject to change without notice. References to investment concepts, asset classes, or portfolio construction approaches are included for illustrative purposes only and should not be construed as a recommendation or a solicitation to buy or sell any security or financial instrument.

Ptarmigan Capital Limited is an employee-owned investment management firm providing discretionary investment management services to private clients, trusts, charities, and family offices. This article is intended to explain the firm’s perspective on bespoke investment management and the factors some clients consider when choosing such an approach. It does not relate to any specific investment product or strategy.

Ptarmigan Capital Limited is authorised and regulated by the Financial Conduct Authority (FRN 940407). Registered in England and Wales (Company No. 12715470). Registered office: 17 Cavendish Square, London W1G 0PH.