Since 1975, Microsoft has been the ‘big elephant in the room.’ They basically own the market when it comes to proprietary, licensed computer software (don’t hate me Apple fans – numbers don’t lie.)

However, a major shift has been occurring. Microsoft is becoming the biggest proponent of Open-Source. Basically, opening Linux and thousands of patents to be accessed for developers to learn and improve upon.

Microsoft CEO Satya Nadella suggested in his book “Hit Refresh” that leadership at Microsoft must be “boundary-less and globally minded in seeking solutions.”

We agree!

So, how does this relate to Potomac for Advisors?

For over 30 years, Potomac’s strategies have been available to advisors as direct, third-party management business.

One channel. One distribution path. Our way, or the highway.

For those who wanted to access our strategies but were using multi-manager platforms or managing their own strategies with research and signals from outside sources – No Bueno!

Today – we are giving financial advisors more investing choice by making the availability of our risk managed strategies “boundary-less.”

Our solutions for advisors are varied and flexible because the challenges facing your firm are unique.

You dictate the terms of our engagement by choosing a full turnkey solution or accessing our strategies on one of several platforms to help you best align client portfolios with acceptable risk.

Two Ways for Financial Advisors to Access Potomac

Turnkey Asset Management Solution

We get satisfaction from being a small firm and knowing that our advisors can call us by name, rather than calling the group number and wondering if they’ll get the same answer twice.

However, it’s not for everyone and all depends on your business model.

PROS:

  • Hands-on customer service (Everyone says this but it’s impossible to deliver at scale.)
  • More control of your business
  • Access to ALL Potomac strategies
  • Multi custodian- including Fidelity and TD Ameritrade
  • Full back office support including client reporting, advisory fee billing, and trading responsibilities

CONS: 

  • Higher relative cost given back office services
  • Access to only Potomac strategies
  • Limited flexibility for choosing custodians

Platform Strategies (Unified Managed Accounts)

Financial advisors have access to multiple investment strategists (their term not ours) all under a single account or household. It also makes life easier for B/Ds and RIAs to have multiple strategists in one place when it comes to reporting and compliance. 

We are actively reviewing and adding our strategies to various platforms, however you can utilize some of our strategies through industry leading UMA platforms such as:

Convenience comes at a cost though, which is typically big business customer service and a lack of personalization. The UMA platform is powerful, but again it isn’t for everyone.

PROS:

  • No need to onboard with each strategist individually
  • Easier to change strategists (which can also be a con!)
  • Multiple strategists can be held in the same account
  • All service done by the same platform group no matter what strategists is used
  • Lower strategists’ cost (but there are typically additional platform costs)

CONS: 

  • Not all platforms and B/Ds have the strategists you may want
  • Service is done by a large group and not likely to get the same person twice
  • A disconnect from the strategist and limited understanding of philosophy
  • Additional platform and Broker/Dealer fees
  • Can be overwhelming with so many choices
  • Limited flexibility for custodian choice

Access our Portfolio Experience Through your Best Fit

We are one of the most experienced risk strategists in the industry, acting as an RIA since 1987. We offer multiple ways to access our portfolio experience: direct and through platforms.

Now that Potomac has opened our strategies up to multiple distribution paths, advisors can now offer real risk management solutions to their clients.

If you have a pain point of needing a risk-managed solution, simply choose the path to Potomac’s strategies that works for you and your clients.

Our focus is and always has been on reducing volatility and maximum drawdown to assure a smoother investment ride and less risk.

Get in touch with our team today to schedule a conversation and discuss which option is best for you.

Disclosure: This information is prepared for general information only and should not be considered as individual investment advice nor as a solicitation to buy or offer to sell any securities. This material does not constitute any representation as to the suitability or appropriateness of any investment advisory program or security. Please visit our FULL DISCLOSURE page.