TYPES OF CLIENTS
We provide investment advisory services for a variety of clients including endowments, foundations, corporations,
municipalities, high-net-worth individuals, trusts, non-profit organizations, insurance companies, financial
institutions, private investment funds and other institutional clients.
MINIMUM ACCOUNT SIZE
We require a minimum account size of $10,000,000 for Fixed Income accounts.
The minimum account size for investment in Hillswick Macro Strategy Fund is $5,000,000 and subsequent
contributions require a minimum of $100,000. Prospective investors in the Fund should refer to the Offering
Memorandum and other Fund documents for complete information.
The minimum account size for separate account invested in the equity S&P 500 Sector Selection strategy is
$1,000,000.
Occasionally, we make exceptions to minimum account sizes or subsequent investments because of existing
client relationships or for other reasons.
We reserve the right to refuse to accept proposed management responsibilities or to resign from the management
of any account.
Wrap Fee Programs:
In certain wrap-fee plan sponsor programs our minimum account size are different than our typical minimum
account size. For example:
- In Wells Fargo Advisors’ Masters and DMA Programs the minimum account size for both our Core and
Intermediate Duration strategies is $500,000.
- In RBC Wealth Management Consulting Solution Program the minimum account is $500,000.
Model Portfolio Provider:
Our S&P 500 Sector Selection strategy available as model with the following minimum account sizes through:
- Envestnet Asset Management, Inc has a minimum account size of $100,000.
- SMArtX Advisory, LLC has a minimum account size of $15,000.
- Atria Investment LLC/Overlay Manager has no minimum account size requirements.
ITEM 8. METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS Link to TOC
METHODS OF ANALYSIS AND INVESTMENT STRATEGIES
As mentioned in Item 4, we provide the following investment strategies:
- Fixed Income products:
o Short Duration
o Intermediate Duration
o Core Duration
o Long Duration
o Active Duration
- Equity product:
o S&P 500 Sector Selection
- Balanced product:
o U.S. Strategic Balanced (a tactical asset weighted blend of investments from our Core Fixed
Income and Equity strategies)
In doing so, we invest, within the limitations of client’s investment guidelines, in a wide range of securities and
other financial instruments, including, but not limited to:
- United States Government and Agency securities
- Mortgage-backed securities
- Corporate Debt securities
- Certificates of deposit
- Mutual Fund shares
- Exchange Traded Funds
- Exchange-listed equity securities
- Option contracts on securities
As financial markets and products evolve, we may be able to invest in other instruments or securities, whether
currently existing or developed in the future.
We apply fundamental and technical methods of analysis to all strategies. As part of our fundamental analysis
process, we attempt to determine the intrinsic value of a security by looking at economic and financial factors
(including the overall economy, industry conditions and the financial condition and management of the company
itself) to determine if the company’s securities are underpriced (indicating it may be a good time to buy) or
overpriced (indicating it may be time to sell). As part of our analysis, we also analyze past market movements and
apply that analysis to the present in an attempt to recognize recurring patterns of investor behavior and to
potentially predict future price movement.
In conducting our security analysis we utilize a broad spectrum of information including: financial publications,
third-party research materials, annual reports, prospectuses, regulatory filings, company press releases, corporate
rating services, inspections of corporate activities and meetings with management of various companies.
Clients and investors should understand that investing in securities involves risk of loss which clients should be
prepared to bear.
RISKS ASSOCIATED WITH METHODS OF ANALYSIS AND INVESTMENT STRATEGIES
Fundamental analysis cannot anticipate market movements. This presents a potential risk, as the price of a
security can move up or down along with the overall market regardless of the economic and financial factors
considered in evaluating the security.
We use subjective judgment to forecast security prices by examining past price movements and other observable
indicators of market activity. Our securities analysis method relies on the assumption that the companies whose
securities we purchase and sell, the rating agencies that review these securities and other publicly-available
sources of information about these securities, are providing accurate and unbiased data. While we are alert to
indications that data may be incorrect, there is always a risk that our analysis may be compromised by inaccurate
or misleading information.
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