Registered Investment Adviser · California
Invest Prudently
Tired of financial service business models charging investors layers of fees through opaque investment vehicles with passive management, exposing investors' wealth to substantial risks? We use thoroughly verified and market-proven sophisticated computer algorithms to construct well diversified and actively managed portfolios.
Our approach ensures: buy-and-sell decisions not limited by human computational capacity; investment process free of fear and greed; timing not missed by human inaction; and account value not at the mercy of the market.
Our Strategies
If an equity portfolio is left to depend upon a passive buy-and-hope strategy, its value is at the mercy of the market and it is unlikely for investors to reach the desired risk/reward investment goal. We use proprietary computer algorithms to actively manage portfolios with the goals to maximize gains and minimize risks.
To provide the best possible investment management for each client, we only accept a limited number of clients for each portfolio.
What Sets Us Apart
Clients can view their holdings online 24×7 to monitor investment progress in real time in their own brokerage accounts. We are compensated by advisory fees directly from our clients, not from financial product companies. This ensures our investment decisions are never biased by conflicts of interest.
Securities remain in clients' own brokerage accounts under their own control. Account market values are updated daily. Clients have access to their money whenever needed. No early termination fee, no surrender charge, no lock-ups on client holdings, and no illiquid investments.
Traditional financial service companies manage investments passively in order to focus resources on accumulating client assets to maximize business profit. We actively manage all clients' accounts exactly like our own accounts with the same goals — protect wealth in bear markets and maximize growth in bull markets.
Investment results are the true measure of investment success, and all our investment results are totally transparent and fully disclosed. We do not use hypothetical back-test returns to confuse investors. Only real, live performance data from actual accounts.
Get Started
Separately Managed Account – Transparency, Liquidity, Active Management, Performance.
Our clients maintain accounts (individual, joint, trust, defined benefit, corporate, partnership, traditional IRA, Roth IRA, SEP IRA, and direct rollover IRA) with custodian Interactive Brokers. We operate pursuant to an investment advisory contract that provides us with the limited power to manage our clients' accounts, receive duplicate statements, and deduct fees from clients' accounts.
Clients retain individual ownership of all securities in their own accounts. There are no barriers to exit — the contract is terminable by clients at any time with no termination fees, back-end loads, or redemption charges.
Thoroughly review all our disclaimer and disclosure documents in the Legal section below.
Review Interactive Brokers' disclosure documents and the inverse/leveraged ETF disclosure:
You will need an email account. For security, we recommend Gmail with 2-Step Verification.
Open Interactive Brokers Account →
Read, fill in, scan, and email us your signed advisory agreement (PDF).
After your account is approved, login to your Interactive Brokers account and approve the automatic fee deduction under "Pending Items." We will immediately begin actively managing your account after it is funded and fee deduction is approved.
Upon completion, your selected portfolio will be immediately replicated into your account. You can use the Mobile App or log in via browser to monitor real-time information. Our computer algorithms will continue finding buy-low sell-high opportunities.
Account Custodian
Analytic Investment Management LLC uses Interactive Brokers LLC (NASDAQ: IBKR) as the global brokerage custodian for clients' accounts. Interactive Brokers is one of the premier securities firms in the world with over $6 billion in equity capital.
Important resources for your Interactive Brokers account:
Interactive Brokers uses different login servers for different account functions. For tax forms, login to Account Management, click "Report Management," then "Tax Forms." Annual tax forms (Schedule D, 1099, etc.) must be downloaded electronically.
Questions & Answers
General Questions
In the US, all institutions and individuals giving investment advice are required to register and disclose with the SEC, and are subject to government reporting, compliance, and exam requirements. You can check all detailed information about Analytic Investment Management LLC and our representatives from the SEC website.
However, the US Government does not have resources to regulate the significant number of unregistered "Financial Advisors" that target unknowing investors daily through the internet, emails, newspapers, radio, and TV. The SEC offers helpful resources on How To Avoid Fraud and Ponzi Schemes.
A SMA investor maintains full control of their own accounts 24×7, because they: (1) own the invested assets directly under their own name; (2) hire their own investment adviser to manage the account; and (3) hold the account at a custodian where the adviser cannot remove funds. Our global clients use Interactive Brokers as their account custodian.
This differs from opaque products like mutual funds, hedge funds, or insurance products, where funds are commingled and investment managers have full access to the funds.
Please read information about Interactive Brokers' financial strength, account protection, and secure login system and do your own due diligence.
Not at this moment. We are constantly evaluating alternative custodians with low trading cost, strong financial strength, account security, and superior trading technology. We work for our clients exclusively and do not accept soft money or incentives from custodians — we only choose the best option for our clients.
No. We only publish results from actual investment accounts net of fees and trading costs. Having used some of the most powerful optimization and simulation software and run millions of simulations, we know that market and trading executions are very complicated systems that cannot be reliably represented by back-tested results. Investors should only trust performance data from real investment accounts.
"Hedge" is a dangerous marketing term. Strategies such as long/short and market neutral have significant margin call and total loss risks during volatile periods. The best way to protect investment is staying in cash during volatile time or using fixed income to diversify. We offer two strategies: Smart Cash Flow for conservative investors and Absolute Return for growth investors.
No. US tax laws are complicated and many investors fall into the traps of tax-saving investment schemes. Simple truths: (1) paying tax on gain is always better than making no money; (2) deferring tax does not mean saving tax; (3) tax rates in the future may be higher or lower; and (4) investors can get powerful tax-free investment gain using ROTH 401(k) or ROTH IRA.
Clients can terminate at any time with no penalty or termination fee. Options include:
Account
Due to government regulations, at this moment we only accept non-US residents or California residents as our clients. If there are sufficient demands from residents of other US states, we will consider registering in those states.
All account types that Interactive Brokers supports can be managed by us. Frequently used types include:
Yes. First open a ROTH IRA account at Interactive Brokers under our management, then login to your existing IRA to issue an "Internal Full Conversion" instruction. ROTH conversion can have significant tax consequences — please review IRS publications carefully or consult a tax professional. Generally, the best time to convert is when the market has had large corrections and/or during years with lower income.
Yes, definitely. We can duplicate a strategy from your existing account. Many of our clients use multiple strategies in multiple accounts.
Management Fee
Each trading day, your account is charged a fee equal to 1/252 (the typical number of trading days per year) of the annual rate, multiplied by the daily net market value of your invested assets. The fee is calculated and deducted automatically by Interactive Brokers.
Example: At market close, an account with a $100,000 value in a portfolio with a 2.5% annual fee would be charged $9.92 ($100,000 × 2.5% ÷ 252).
Traditional buy-and-hold advisers can offer fee breaks for larger accounts because they do not actively manage risk. Our strategies have capacity limitations that exist for the benefit of existing investors. It would not make sense for us to cut prices to attract larger accounts at the expense of our current clients.
Disclaimer & Disclosure
Investing in the financial markets involves risk, including the risk of principal loss. Don't invest with money you can't afford to lose. Information in this website is in no way intended as personalized investment advice and should not be interpreted as such. Past performance is not necessarily indicative of future results. Performance results do not take into account any tax consequences.
Please review our FORM ADV Part 1 and Part 2 Disclosure from the SEC website: Analytic Investment Management LLC FORM ADV Part 1 and Part 2
Analytic Investment Management LLC is a registered investment adviser under the Investment Advisers Act of 1940. Analytic Investment Management LLC may only transact business in those states or countries in which it is registered, or qualifies for an exemption or exclusion from registration requirements.
For non-clients, this website is limited to the dissemination of general information pertaining to our investment advisory services. Any subsequent, direct communication with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption in the state or country where the prospective client resides.
Blog articles in this website are for informational purposes only and do not constitute a recommendation or an offer to sell or a solicitation of an offer to buy any security or financial instrument.
The content appearing on this website is the property of Analytic Investment Management LLC or its licensors, and is protected by intellectual property rights. Information is accurate as of the date published; Analytic Investment Management LLC disclaims responsibility for updating information and for third-party content accessed through hyperlinks.
Data & Privacy
Analytic Investment Management LLC requires clients to provide current and accurate financial and personal information when signing advisory agreements. However, we do not collect sensitive information such as social security numbers, credit card numbers, or account passwords. Client information is stored only in computers behind a secure firewall. We are committed to protecting your privacy and safeguarding that information.
We collect non-public client data in checklists, forms, written notations, and documentation provided by clients for evaluation, registration, licensing, or related consulting services. Access to customer records is locked and monitored. Failure of supervised persons to observe our privacy procedures will result in immediate termination.
We will not share such information with any affiliated or nonaffiliated third party except:
It is not our policy to share nonpublic personal and financial information with third parties except under the circumstances noted above. Since sharing under those circumstances is necessary to service accounts or is mandated by law, there are no allowances for clients to opt out.