Quantum Capital adds Core Equity Strategies to WealthADV

Marin County, CA and Charlotte, NC - 13 November 2007

Quantum Capital Management, an investment strategy firm, has made three of its previously proprietary investment portfolios available to independent advisors via Adhesion’s WealthADV platform. Quantum Capital is an independently managed subsidiary company of $26 Billion Focus Financial Partners, the largest privately owned wealth management firm in the United States. Quantum is also one of approximately 225 national investment advisors in the Charles Schwab Advisor Network. The firm’s performance records are in compliance with the CFA Institute’s Global Investment Performance Standards (GIPS) and independently verified by third party auditors, Ashland Partners, LLC.

“Until recently, Quantum’s strategies were only available directly through the firm”, remarks Rich Conley, SVP of Sales at Adhesion. “Now, with WealthADV, advisors gain access to the strategies without the need to open a separate account with Quantum , without the firm’s account minimum restrictions, and regardless of which custodian they use (e.g., Schwab Institutional, TD Ameritrade Institutional, Pershing, or Fidelity).”

Howard Aschwald, a co-founder and the Chief Investment Officer at Quantum noted, “We really like the WealthADV managed service model for RIAs. With WealthADV RIAs can begin to utilize our strategies with a simple ‘check of a box’, versus going through the process of engaging us to provide the actual portfolio management for each account. It is a win-win for both the RIA and Quantum.”

The Quantum core strategies are designed to hold the majority, or in the case of the Global Growth Strategy, the entire equity component of an asset allocation plan. “We have been serving high net worth clients for over eleven years through all kinds of markets. We’ve found that clients really like an equity strategy that makes intuitive sense and allows them to weather downside risk with a lot of emotional comfort”, said Steve Bradley, co-founder and CEO of Quantum. “We really think our strategies will be a great alternative for those RIA’s serving individual clients who are looking for a steady investment approach and low manager turnover”, added Howard Aschwald.

There are three core Quantum equity strategies available at WealthADV:

QCM Long Term Growth: Invests in established US companies with solid fundamentals and proven records of increasing sales and profits that are at least $2 billion in market capitalization. Quantum looks at rising Economic Margins in relationship to a firm’s Market Value to net Invested Capital to determine an intrinsic value. Quantum’s use of non-standard financial information is one of the key differentiators and value contributors in its proprietary research process. The portfolio is exposed to all ten S&P GICS sectors and aims for returns at or above the Russell 1000 Growth Index with at least 10% lower volatility risk. This is designed as a core growth strategy.

QCM Dividend Growth: The strategy is focused on achieving above average current income, growing dividends and growth of capital. The portfolio is comprised of stable, dividend-paying companies with projected dividend growth at least equal to the rate of inflation and portfolio dividend growth that is at least double the rate of inflation. Quantum utilizes the same fundamental research process as its other disciplines, but limits it selection universe to U.S. domiciled companies that are greater than $2Billion in market capitalization and that pay at least 80% of the dividend yield of their respective GICS sector. The portfolio is exposed to all ten S&P GICS sectors aims for returns equal to S&P 500 with at least 10% lower volatility risk. This is designed as a core value strategy.

QCM Global Growth: The objective is to achieve superior returns through a strategically designed portfolio with exposure to more rapid global growth opportunities and focused participation in the more rapidly growing segments of the U.S. economy. The portfolio is exclusively constructed with ETF assets for all ten Global GICS sectors, U.S. small and mid cap growth stocks, and emerging markets. Allocations are managed at the GICS S&P500 sector level and rebalanced annually to current strategic targets in order to optimize the risk-adjusted returns of the portfolio. Returns are expected to significantly exceed the S&P500 with approximately the same level of volatility risk. This is designed to be the only equity strategy of a portfolio.

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