SB Value Partners operates as a registered investment advisor that manages private investment partnerships and separately managed accounts for qualified clients. The firm focuses primarily on value-oriented strategies, investing in community bank stocks, U.S. government bonds, and municipal securities, including high-yield debt. SB Value Partners offers several specialized investment vehicles, such as the SAB Moderate Equity Partnership, SAB Capital Markets, and SAB High Yield Capital Markets, as well as separately managed accounts. The firm does not charge traditional management fees for these portfolios; instead, compensation is earned through a performance-based profit participation structure ranging from 20% to 25% of net profits, subject to high-water marks and loss carryforward provisions. In addition to investment management, SB Value Partners provides institutional asset management and efficiency optimization consulting services. The firm's strategies are generally not tailored to individual investor restrictions, except for certain institutional accounts. Minimum investments typically start at $250,000 for the partnerships and $1,000,000 for separately managed accounts.
Fee Structure
SB Value Partners does not charge traditional annual management fees based on the value of your portfolio. Instead, the firm is compensated through performance-based fees (a share of your net profits):
- SAB Moderate Equity Partnership — 20% of net profits per year
- SAB Capital Markets & SAB High Yield Capital Markets Partnerships — 25% of net profits per year
- Separately Managed Accounts — 25% of net profits per year
Performance fees are calculated annually and are subject to loss carryforward provisions, meaning no profit share is charged until past losses are recovered. Minimum initial investments are $250,000 for partnerships and $1,000,000 for separately managed accounts.