Please read these before hiring C.J. Coletta & Company, Inc. to manage your assets.
Why work with an independent Registered Investment Advisor that specializes in asset management?
Some people work with an independent Registered Investment Advisor because they don’t have the time required to do the proper work that is necessary to run their portfolio. In many cases, people are so caught up in running their personal and professional lives that they can’t seem to find the necessary time to run an active portfolio. Others are looking to diversify their current investment strategies in an effort to achieve a higher level of return. Many wealthy individuals seem to find it less stressful and may enjoy better results by working with a team of investment professionals.
What makes C.J. Coletta & Company, Inc. different from a hedge fund or mutual fund?
All our accounts are managed individually. A hedge fund or mutual fund is managed collectively. The benefits to the individual investor are transparency and individualized tax reporting. Every client individually owns and can view all the positions in their account at any time.
How will I know what you are doing with my account?
You can receive information online, the mail, by phone, or you can visit our office. Our clients receive at least quarterly statements from their custodian/broker dealer, they can choose to have every confirmation sent to them, and you can go online where you can see the activity updated daily. Since all equities are owned by the client, the issuer companies send proxy statements and annual reports to the account holder on a regular basis.
Why should I hire C.J. Coletta & Company, Inc to manage a portion of my assets?
Client’s hire us because they are looking for active investment programs that focus on absolute returns independent of an index. They understand our investment process and believe that we can add value over the long term to their overall portfolio.
What is C.J. Coletta & Company, Inc allowed to do with your account?
As an investment advisor C.J. Coletta & Company, Inc. is only authorized to place orders to buy or sell securities within each clients individual brokerage account. The custodian (brokerage firm) holds your assets separately, safeguards your account, facilitates securities transactions and sends confirmations, monthly statements, and year end 1099 tax information directly to the client.
Are all portfolios managed exactly the same way?
No they are not. We understand that each of our clients has their own unique circumstances and goals and we tailor our programs to meet your objectives. We talk about your specific investment objectives, experience, comfort level, risk tolerance, and other relevant issues take come into consideration when managing your portfolio. Our investment advisory services are highly personalized. Our in house developed investment programs are unique and we spend the time to understand how they can best fit into your overall investment strategy.
What kind of record keeping does C.J. Coletta & Company, Inc. provide to their clients?
Besides receiving brokerage statements from your custodian, our clients receive detailed quarterly statements and performance figures from C.J. Coletta & Company, Inc. At the end of each year, clients with taxable accounts receive a thorough tax summary that includes capital gain/loss information and breakdown all income and dividend payments. This consolidated statement is invaluable at tax preparation time. Our goal is to keep your record keeping simple.
What is your minimum account size for your managed account programs?
The minimum account size for our firm is $50,000 for an individual.
How is C.J. Coletta & Company, Inc. compensated?
Our incentive based fee structure is designed to align our interests with clients. C.J. Coletta & Company, Inc. does not receive compensation from commissions. The flat annual percentage fee is customized for each client based upon individual client’s funds under management.
How often can I expect to talk to or meet with my Investment Advisor?
We keep an open door policy and encourage clients to contact us with any questions they may have or to come in and meet with us as often as needed. We pride ourselves in educating our clients and are prepared to spend the time necessary with clients so they have a better understanding of our approach and decision making process. We want our clients to feel comfortable in allocating a portion of their assets to us for the management of their wealth.
What is margin?
Margin refers to the borrowing of funds, using your account equity as collateral. At C.J. Coletta & Company, Inc clients borrow funds from Interactive Brokers to buy more shares than the cash value of their account would allow. Clients pay interest on the loan, and are potentially exposed to the risk of liquidations, should the market turn suddenly. There is also a chance a client utilizing margin could lose more than their initial investment. Investing on margin is riskier than investing on a cash-only basis. For margin approved accounts, we also offer a Short Selling Program-a risky strategy. Should you choose to open a margin account, a Margin Disclosure Statement will be provided to you which discusses the operation of a margin account and the risks associated with trading on margin.
What is short selling?
Short selling is selling shares you do not own to take advantage of an anticipated decline in price, which the intentions of buying the shares at a future date at a lower price. The borrowing is done from your custodian/brokerdealer, creating a “short” position in your margin account until the transaction is closed out or “covered” by purchasing the same shares and returning them to your custodian/brokerdealer. Our shorting strategy is a means of seeking returns in the market as equities go down. Shorting Strategies can be used in tandem with other programs in an effort to balance risk in the equity markets or for those who wish to pursue performance during market declines. Shorting is a risky strategy, because theoretically potential losses are only limited by how high the price of a stock can go.