Registered Investment Advisors
Registered Investment Advisors
At Grant Koehler & Levin our fees are completely transparent: a maximum of 1.2% on the equity portion of the portfolio annually, plus your cost to make the trades.
When bonds are purchased, the dealer is allowed to mark up the bond to reflect a “reasonable” profit. This “mark-up” does not need to be disclosed on the confirmation that the client receives. The cost shown includes the mark-up, but it is not specifically identified. Out of sight--out of mind. It is not uncommon for a bond to be marked up as much as 3 or 4 %, depending on several factors.
At Grant Koehler & Levin the bond portion of the portfolio is charged 0.5% annually.
We believe that our fee structure is as transparent as we can make it and among the lowest in the industry.
An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium.
For example, let's say that you own shares of the TSJ Sports Conglomerate and like its long-term prospects as well as its share price but feel in the shorter term the stock will likely trade relatively flat, perhaps within a few dollars of its current price of, say, $25. If you sell a call option on TSJ for $26, you earn the premium from the option sale but cap your upside. One of three scenarios is going to play out:
a) TSJ shares trade flat (below the $26 strike price) - the option will expire worthless and you keep the premium from the option. In this case, by using the buy-write strategy you have successfully outperformed the stock.
b) TSJ shares fall - the option expires worthless, you keep the premium, and again you outperform the stock.
c) TSJ shares rise above $26 - the option is exercised, and your upside is capped at $26, plus the option premium. In this case, if the stock price goes higher than $26, plus the premium, your buy-write strategy has underperformed the TSJ shares.
If you would like a copy of our form ADV (this is the information we file with the Securities and Exchange Commission that describes our business), please contact us.