What do we do for you?
Beddow Capital Management is an investment adviser as defined by the Investment Advisors Act of 1940. Our primary challenge is to manage risk intelligently. We stand in a special relationship of trust and confidence with our clients. As a fiduciary, we have an affirmative duty of care, loyalty, honesty, and good faith to act in the best interests of our clients. The parameters of an investment adviser’s duty depend on the scope of the advisory relationship and generally include:
- the duty at all times to place the interests of clients first;
- the duty to have a reasonable basis for its investment advice;
- the duty to seek best execution for client securities transactions where the
adviser directs such transactions;
- the duty to make investment decisions consistent with any mutually agreed upon
client objectives, strategies, policies, guidelines, and restrictions;
- the duty to treat clients fairly;
- the duty to make full and fair disclosure to clients of all material facts about the
advisory relationship, particularly regarding conflicts of interest; and
- the duty to respect the confidentiality of client information.
We report our results formally at the end of each quarter. Specifically, we show:
- The total amount placed under management and the current value of the portfolio
- The rate of return for the portfolio and appropriate comparative indices (e.g., S&P 500, Shearson Government Bonds) for the trailing quarter
- A comparison of historic returns on the portfolio and comparative indices since the inception of our management
- A full listing of investments currently held in a portfolio together with purchase cost and current valuation
- An explicit statement of our fees with an analysis showing their impact on rates of return
Each of our clients retains a custodian to hold their assets. In this way, clients receive trade confirmations and monthly statements directly from their custodial institution. Through this arrangement, clients retain effective control of their assets while giving us authority to make all investment decisions. Clients are free to choose any broker, bank or other institution as custodian.
We maintain informal contact with sufficient frequency to ensure that our clients are apprised of our thinking about investments and understand the rationale for any significant action we may take on their behalf. At the same time, this communication keeps us up to date on any significant changes affecting them, their families or their circumstances.