Invest Wisely For Tomorrow.
“Risk comes from not knowing what you’re doing.”
— Warren Buffet
Why Active Investing Wins.
Most investors can’t afford a major portfolio loss.
Active management can provide protection in volatile markets. Regular buy & hold strategies are often highly correlated with the market and with each other. Alternatively, active strategies can provide extra downside protection and useful diversification.
Consider this:
In 2008, the S&P 500 was down 37%, whereas EVO 1 was up 17.5%, after fees.
To recover from it’s maximum drawdown of 50.95%, the S&P 500 took 37 months. EVO 1’s maximum drawdown is half that of the market, and only took 8 months to recover.
To recover from a loss, you need more returns to be made whole:
A 10% loss requires a 11% return
A 30% loss requires a 42.86% return
A 50% loss requires a 100% return
Active investing strategies help you dodge these types of losses, so you can protect your assets and grow your wealth faster.
Why Potomac Advisors
Like you, we’re in it for the long haul.
As a family owned & operated business, our goal is to create a sustainable business that can help people of all backgrounds achieve financial freedom. This extends to our own family: with Rich Paul’s 40 years of investment experience, his goal is to pass that wisdom and expertise onto the next generation to keep the business thriving well into the future.
We can only do that by delivering honest results. We are fiduciaries and 100% objective. We operate and advise clients without bias. We have transparent, fee-only compensation.
Our goal is to succeed together, for both of our families.
Frequently Asked Questions
What is the difference between an RIA and a Broker Dealer?
Potomac Advisors is an SEC Registered Investment Advisor (RIA).
The primary differences are in standard of care and custody. A Registered Investment Advisor is registered with the Securities and Exchange Commission (SEC) or with individual State authorities and must adhere to a fiduciary standard of care, which mandates that we must serve in the client’s best interests. Brokers (some of the largest also referred to as Wirehouses) are generally regulated by the Financial Industry Regulatory Authority (FINRA), and are only required to adhere to a ‘suitability’ standard by law, though they have the option to adopt fiduciary standards. Suitability ensures that you are given recommendations for investments that are suitable for your risk profile, however it is a lower standard than fiduciary care.
In addition, brokers custody your assets. So if you want Broker X to manage your investments, you must open an account with Broker X’s firm. RIAs do not act as custodians and use a third-party provider. Potomac Advisors manages accounts and recommends Guggenheim, Nationwide and TDAmeritrade. This separation of custody from investment advice creates a system of checks and balances.
Where can I open an EVO account?
We manage client accounts at Guggenheim, Nationwide and TDAmeritrade.
How much can I invest in an EVO strategy?
This depends on your age, investment goals, and risk profile. However, since the EVO strategies use leverage, we typically recommend that you invest no more of 10-25% of your net worth into an EVO strategy.
Do you have a minimum client size?
We are able to serve clients across a wide range of asset levels. For our standard asset advisory services, we generally require $100,000 in invested assets, although we do make exceptions depending on the situation. Your initial investment can be split between multiple strategies in separate accounts.
What are your fees?
Potomac Advisors invests on a discretionary basis, and is compensated by a fee based on the percentage of assets under management.
Fees are payable on a quarterly basis, in advance, based on the market value of the assets under management at the end of the preceding quarter. Advisory fees do not include brokerage commissions or other charges incurred by the custodian on behalf of the client.
For the EVO strategies, our maximum annual management fee is 2.0%. These strategies require rigorous daily management and skill.
For our American Funds Strategy, High Yield Bond Program, and our Long-Term Strategy, our maximum annual management fee is 1.8%.
And yes, fees may be negotiable under certain circumstances.
Where can I learn more about your business practices?
We encourage you to read our Party III ADV Relationship Summary and our Part II Form ADV disclosure statement for more information on our management services and compliance practices. For more information, contact us.
Still looking for answers?
Reach Out to us to get answers for any other questions you mayhave.
info@potomacadvisorsinc.com
(941) 536-0974
