Craig Novorr at his office talking to a client (Desktop background).Mobile background of Paragon Capital Management LLC conference room.

Institutional Investors

At Paragon, we focus on a specific set of portfolio strategies according to our investment philosophy, and we are constantly striving to master our abilities and knowledge within that wheelhouse. While we do partner with the largest alternative asset managers in the world to provide our clients access to private equity, hedge funds, private funds, and private real estate deals, our in-house focus is simple: equities, bonds, and structured notes.

Read More
a yellow arrow on a black background.
Scroll to learn more image
Orange outline of a rectangle

Institutional Investors definition: large organizations or entities such as commercial banks or investment banking, pension funds, labor unions, or insurance companies that make sizeable investments in securities (the stock market), real property & and other investments, or originate loans.

The term institutional investor is typically meant to describe a legal entity that makes significant investments, but some clients of Paragon Capital Management, LLC control greater assets than financial institutions.

What is an Institutional Investor?

Institutional Investors

Institutional Investors

In our modern investing and financial environment, institutional investors are bound by more constraints than ever. Regulations from the Securities and Exchange Commission (SEC) create an enhanced need for regulatory-based risk-management strategies. This can lead to good investments being pulled because the market overreacts abruptly before it settles into its natural course.

Institutional investors have a large influence on the financial markets because they invest money in far greater sums than retail investors. Because their moves can greatly influence the stock market, risk mitigation plays a major role in institutional investing.

Paragon Capital Management, LLC has a unique approach to capital markets that benefits institutional investors and individual investors alike, but in very different ways. Large institutions, endowment funds, mutual funds, hedge funds, financial institutions, non-profit organizations, and accredited investors investing their own money may be well-served by the unique types of financial instruments and investment strategies utilized by Paragon.

Suppose your firm is seeking investment vehicles that can provide returns, steady cash flows, significant risk mitigation, or new investment vehicles. In that case, we will outline why Paragon Capital Management, LLC may be the right partner for you.

Paragon can improve corporate governance for your firm by providing significant risk mitigation to your investment portfolio and providing simple yet lucrative investment opportunities that most other firms neither utilize nor understand (even though they aren't complicated).

Types of Institutional Investors that Are Well-Suited for Paragon's Strategy

Hedge Funds

While Hollywood depictions of hedge funds like Axe Capital (from the show Billions) show firms in the business of finding outsized returns and investment opportunities that others can't see, this isn't entirely correct. A real-life hedge fund focuses on, as the name suggests, creating a hedge against losses in the greater market.

A retail investor cannot typically invest with a hedge fund, as their portfolios are often not liquid assets, and can't be withdrawn by the investor before a long time period (often 5 years). Like our ultra-affluent clients at Paragon Capital Management, LLC, hedge funds strive to protect the legacies of their accredited investors while growing their investments. The fixed income and structured product strategies utilized by Paragon are a perfect alignment for a hedge fund seeking new investment options for its clients. Our multi-generational clientele stays with Paragon because of our ability to generate steady cash flows through our laddering strategies that provide capital on a regular basis while also mitigating risk and participating in the upside of the stock market.

Pension Funds

Pension funds may be one of the most important investment vehicles in the financial markets because the investments they make determine the retirement standard of living for their end customers. The individual investors that a pension fund serves need these funds to outpace inflation and the standard of living cost increases in a way the average retail investor does not. This makes the investment decisions and corporate governance of a pension fund extremely important.

Paragon Capital Management, LLC is uniquely well-positioned to help pension funds meet their goals. Our background as institutional investors and an investment philosophy that is centered on customer service while protecting the legacies of our clients is in perfect alignment with the needs of pension funds.

Mutual Funds

With his experience running multiple mutual funds at a highly acclaimed firm, Paragon Capital Management, LLC Chief Investment Officer (CIO) Craig Novorr knows more about mutual funds than the typical financial advisor. If you are a mutual fund manager running an actively managed fund, a fund that pays dividends and could use a steady stream of cash flows, or one with a fixed-income strategy, it may be incredibly beneficial to invest with a firm whose leadership knows your needs and requirements far more intricately than other institutional investors.

The investment strategy utilized by Paragon Capital Management, LLC was born out of experience running mutual funds, working with numerous investors, and investing at the institutional level. Retail investors who invest in mutual funds usually do so as part of a diversification strategy to mitigate losses in the financial markets.

With its unique investment strategy, eye on risk mitigation, and experience with mutual funds, Paragon is a natural fit for the managers of these vehicles.

Endowment Funds

Endowment funds are often long-term investment vehicles designed to fund specific causes, institutions, or organizations in perpetuity. Established as legal entities by wealthy individuals, universities, hospitals, charitable foundations, or non-profit organizations, these institutional investors choose certain securities to invest in that can provide long-term and reliable returns which are then used to fund the organization for the foreseeable future.

The needs of endowment funds are in perfect alignment with the investment philosophy and strategy of Paragon Capital Management, LLC. Our ever-present focus on risk mitigation, dedication to protecting & growing the legacies of our clients, and fixed-income laddering strategy that creates a steady stream of cash flow are well-suited to the needs of these institutional investors.

Institutional Funds

Managers of institutional investment funds operate funds that are only open to institutional investors, which provides more leeway than managers of a mutual fund that caters to retail investors. The large institutions that make up their clientele have different needs than individual investors, which leads institutional investment funds to create diverse and comprehensive portfolios designed for varying market objectives.

Our team of investment experts at Paragon Capital Management, LLC can help your institutional investing fund enjoy preferential treatment with unique investment vehicles that other firms don't understand, or know how to create. At Paragon, we trade securities based on each of our clients, no matter how large or small. We can custom-build portfolios for your institutional investors that provide a unique ability to achieve risk mitigation while also participating in upside opportunities of the stock market.

Insurance Companies

Warren Buffet famously loves investing in insurance companies for their financial structure and the ability to use the "float" to turn a profit. While most property and casualty insurers focus exclusively on bonds for their portfolio, Berkshire Hathaway's willingness to invest in other types of securities and investments has led to that firm being a financial powerhouse. Unlike Wall Street, the price dynamics of insurance companies provide a timeline through which client premiums can be invested and used to achieve higher market returns than the company eventually pays out in premiums.

Because insurance companies often do have to pay out to their customers, they utilize a far more risk-averse investment philosophy than most. At Paragon Capital Management, LLC, our focus is on growing and protecting our clients' legacies first and foremost, which has taught our firm to utilize other securities than equities for concurrent growth and risk mitigation. If you are an insurance company that wants to put your float to work but needs risk mitigation to be an integral part of your investment strategy, you would be right at home with Paragon Capital Management, LLC.

Non-Profit Organizations

Non-profit organizations may not be able to turn a profit due to their tax structure, but they do need to pay the bills and maintain adequate funding to focus on their cause. Giving back to our communities is a key focus of Paragon Capital Management, LLC, both as a firm and as the individuals who comprise it. This creates a very warm spot in our hearts for non-profit organizations.

Many institutional investors tend to focus on money & numbers above all, but our firm is based on serving our families and communities. Our founder Howard Jacobson and current CIO Craig Novorr count serving their communities as the hallmarks of their life work, putting a huge amount of effort into giving back more than they receive.

If your non-profit organization is looking for a capital management firm that will not only invest your money with care but who also have hearts based on gratitude and giving themselves, Paragon Capital Management, LLC is the place for you.

Accredited Investors

As a capital management firm that focuses exclusively on ultra-affluent clients, our team at Paragon Capital Management, LLC can provide access for accredited investors to invest in places outside the market that typical individual investors cannot. Our firm regularly partners with strategic alternative asset managers, providing our clientele access to private equity deals, private real estate deals, private funds, and hedge funds.

If you are an accredited investor who has outgrown your current advisor, is interested to see what other types of investment opportunities are available to you, wants downside risk strategies, or you are simply looking for a firm with lower fees than you are currently paying, it may be worth your time to call our experts at Paragon Capital Management, LLC. Our team would love to show you what we can provide for your portfolio that other firms cannot.

Private Equity & Venture Capital

Private Equity (PE) and Venture Capital (VC) are seemingly different on the face but very similar in their business model. These institutional investors invest in companies at different stages (mature firms vs startups). Still, both forms of investing are high-risk  and focus on non-public companies.

The individual investor in each type of company must be an accredited investor through whom the PE or VC firm pools investments to provide capital in exchange for equity in the target company. These institutional investors need access to capital when they find a suitable company to invest in, but also need a way to grow their money while it is not actively invested.

The investment strategy utilized by Paragon Capital Management, LLC is an excellent fit for both Private Equity and Venture Capital firms due to the mix of equities, bonds, structured products, and ability to generate returns along with a reliable stream of cash flow. In the same way that these firms are dedicated to finding excellence in companies with future revenue potential, Paragon is dedicated to finding future returns in investments across all classes.

Whether revenue from prior successes or capital that is not being utilized, Paragon can help grow your fund in the capital market so you have more when it is time to invest in the right company or startup.

Leverage Our Fixed Income & Structured Product Expertise

If your institutional investment firm knows the power of fixed-income strategies when properly implemented, but doesn’t have the expertise or ability to do so in-house, Paragon Capital Management, LLC is well-suited to help provide those abilities for you.

At Paragon Capital Management, LLC we focus on goals-based portfolios for every client. Our experience as institutional investors and access to financial instruments that many firms don't understand can be the perfect addition to your portfolio to drive market returns while protecting your bottom line.

Orange outline of a rectangle
sky at night

Get in touch

Whether you feel as if you’ve outgrown your advisor or you just want a fresh perspective on portfolio strategies in our current market, our team of experts is here for you.

Let's talk
Howard Jacobson and Craig Novorr sitting at a desk in front of a monitor.