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cwelsh

Managed Accounts

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Introduction

 

Most members are aware that I have a full service investment advisory firm, Lorintine Capital, which is based in Dallas, Texas and Gilbert, Arizona.  The Firm provides portfolio management services, offers investment advice, assists in risk management, and helps our clients reach their long term financial goals. 

 

We are pleased to announce that Lorintine Capital will now be offering managed accounts for both Anchor Trades and LC Diversified.  Below is an FAQ devoted to these managed accounts.  If you have any questions regarding them, or any interest in them, please contact Jesse or me at the contact information provided below.

 

What is a managed account?

 

A managed account is a specialized investment advisory account that simply uses one particular strategy.  By way of example, if you have a Edward Jones advisor, you might have two accounts with Edward Jones, (i) a retirement account and (ii) your normal investment account where your stocks, bonds, mutual funds, etfs, and so forth are located.  Each month you then get a consolidated statement showing the combined accounts and two individual statements providing a detail on each account.

 

A managed account is no different.  It is an account you own, maintained through a custodian (such as TDAmeritrade, Interactive Brokers, Edward Jones, Dain Rauscher, etc.), for which you will receive a monthly statement.  Only instead of holding stocks, bonds, mutual funds, and etfs selected by your advisor, it only trades one particular strategy.

 

A typical Lorintine Capital client who utilize a managed account typically have the following: (i) a retirement account, (ii) a traditional investment account, and (iii) a managed account (that trades the Anchor Strategy or LCD).  The account belongs to the client (unlike with a hedge fund, which owns the account) and the client gets a monthly statement.

 

Why would I use a managed account?

 

The simplest answer is ease.  Lorintine Capital is a professional investment advisory firm.  We run the strategies discussed in these forums in our firm accounts, personal accounts, and client accounts.  It takes the burden off of you by having the Firm do it, and removes some of the margin of error.  One of the most common emails we get is “I accidentally did trade X, how do I fix it?”  Having a managed account removes this issue.

 

It also means you will receive the same fills that the Firm receives, as well as the same fills which are listed on the Steady Options website.  Any member of this site is well aware of the fact that it can be difficult to obtain a fill at the same price as what was posted thirty minutes later.  Sometimes members can obtain better prices, other times vastly inferior prices.  At other times, the market may have moved significantly, resulting in the need for a different trade at a different strike.  Having a managed account means we worry about that, not you.

If you a pure “do-it-yourselfer” type individual, who just wants to have complete control over your account, you are still better off maintaining your subscription and trading yourself.  However, we get numerous messages a week asking for assistance in actual trade executions – the best way to do that is through a managed account.

 

What are the fees associated with a managed account?

 

The Firm’s typical fee structure (depending on account size) is one point five percent (1.5%) annually of assets under management.

 

Your account, as will always be the case, will also be charged commissions by the custodian for certain trades.  Lorintine Capital does not have any “soft money” arrangements where the Firm receives a “kickback” for trading a client’s account. Lorintine Capital does offer discounts to larger accounts, typically in excess of one million dollars.

 

Which strategies will be available in managed accounts?

We currently trade LC Diversified, Anchor, and a number of others that are not discussed on this site. Contact Chris and Jesse for more details or me through the site if you are interested.

 

Will I still have to pay my subscription fee if I open a managed account?

 

Depending on your account size, discounts or rebates may be available.

  • If you place $120k or more into a managed account, you will be entitled to 50% discount of the Anchor Trades monthly subscription.
  • If you place $200k or more into a managed account, you will be entitled to a free access to the Anchor Trades.
  • Regardless of the account size, you will be eligible to have access to LC Diversified forums.   

 

I am not an accredited investor/qualified client, does that matter?

 

No, anyone can open a managed account.  However, one of the Firm’s investment advisors will want to talk to you prior to opening an account to make sure a managed account is in your best interest.

 

What are the minimum sizes for a managed account?

 

The minimum managed account size for the Anchor Trades strategy and for LC Diversified is one hundred and twenty thousand dollars ($120,000). For smaller accounts, consider auto-trading.  

 

Where are the managed accounts located/what custodian do you use?

 

Lorintine Capital uses TD Ameritrade Institutional for managed accounts.

 

Do I have to have more than one account with your firm?

 

No.  While Lorintine Capital would greatly appreciate the opportunity to serve as your investment advisor on all of your accounts, if you want to simply open just a managed account, you may do so.  There is no requirement that you maintain a traditional investment account or retirement account to have a managed account. 

 

Who do I contact for more information?

 

You may contact either Jesse Blom (jblom@lorintinecapital.com) or myself (cwelsh@lorintinecapital.com) at any time.

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