Who we are Delta Investment Management, LLC (referred to as “we,” “our,” “us,” or “Delta”), has been registered as an investment advisor since April 2009. Our principals and owners are Nicholas Atkeson and Andrew Houghton.
Services we offer Delta provides investment consulting and investment management services to its clients. Delta charges fees based on assets under management (asset based fees) and does not charge fees separately for investment consulting services. For those clients who request a comprehensive investment plan, Delta will design a plan that meets industry standard practice and may include the use of third party mutual funds as a way to achieve the financial objectives identified in the plan. With the client’s approval, Delta will implement the financial plan. Within the plan, some portion of the client's funds could be allocated to one of the following strategies: Delta Capital Appreciation, Delta Kress Tactical, Delta Tactical Core, Delta Opportunity, Delta Blue Chip Growth or could be managed by Delta in a custom account. Some portion of our clients maintain only a portion of their total investable assets with Delta Investment Management.
Many of these clients with only a portion of their liquid net worth managed by Delta have their funds in the Delta Kress Tactical, Delta Capital Appreciation, Delta Opportunity, Delta Blue Chip Growth, and/or Core strategies.
Delta assists its clients in analyzing needs, setting objectives, developing asset allocation models and selecting Managers to implement the asset allocation plan and to make specific investments. In preparing a financial plan using a comprehensive disciplined approach intended to be consistent with each client's particular needs and circumstances, we consider the following issues: total net worth, liquid net worth, age, income, income visibility, risk tolerance, tax considerations, investment income needs, savings requirements, overall investment objectives, investment experience, understanding of investment risk considerations, expected investment return rates, volatility of various investment choices, correlation of portfolio assets, diversification, and asset allocation. Once we implement an investment plan for you, we will monitor your investment performance on an ongoing basis. It is your responsibility to inform us of any changes to your financial situation that may impact the suitability of your investment.
Delta also acts as a subadvisor to other investment advisors. In these cases, the investment advisor hiring Delta has responsibility for client communication, gathering suitability information and choosing the appropriate investment strategy for each client.
We do not sponsor or manage wrap fee program assets.
Delta Capital Appreciation Delta Capital Appreciation strategy seeks to appreciate client assets during bullish U.S. equity market periods and mitigate potential loss during U.S. equity bearish market periods by means of making opportunistic investments in equity and bond ETFs and cash. The strategy seeks to achieve positive absolute performance through major market cycles. The strategy is focused on managing equity risk by measuring stock market momentum of U.S. equity markets and positioning the strategy either in high relative strength stock ETFs, defined outcome/hedged ETFs, U.S. treasury ETFs or cash based on equity risk levels. During times when the strategy is invested in equities, it achieves its equity exposure through an ETF(s). During times the strategy is allocated in U.S. treasury bonds, it achieves its exposure through an ETF(s). While the strategy incorporates stringent risk control metrics, it makes no guarantee that your investment may not suffer from severe drawdowns.
Delta Capital Appreciation is managed by Delta. Asset allocation decisions are made weekly. Accounts that follow the Delta Capital Appreciation strategy are expected to experience significant turnover and short-term capital gains and losses. The Delta Capital Appreciation strategy is not suitable for all investors and involves risks associated with ETF investments including the risk of loss of the principal invested.
Delta Opportunity Delta Opportunity is an all opportunity, relative strength ETF rotation strategy that seeks to outperform the S&P 500 through the full investment cycle. The strategy may invest in ETFs representing various industry sectors, geographies, market capitalizations, styles (including value, blend and growth) and asset types including equities, bonds, treasuries and cash. On a weekly basis, price performance of the available investment opportunity set is measured and portfolio positions may be replaced with new positions with higher relative strength measurements. The investment opportunity set is analyzed quantitatively with multiple investment models using a variety of investment analysis metrics. The strategy seeks to transition client assets to the best performing areas of a broad investment set that includes global equities, bonds and cash. The strategy incorporates several layers of risk management including the capability of transitioning to defensive asset types during bearish equity cycles. Tactical position changes are designed to capture growth opportunities in up markets and mitigate risk in declining markets.
Delta Core Delta Core is a diversified strategy which owns both fixed income and equity investments using both exchange traded funds (ETFs) and mutual funds. The strategy is benchmarked against a globally diversified 60% equity/40% bond portfolio. The strategy is designed to be tax efficient with a low turnover ratio. The primary method of risk management in the Delta Core strategy is through asset diversification.
When recession risk is elevated based on macro-economic indicators, the strategy may further mange risk by reducing its equity exposure materially below the 60% range.
Delta Kress Tactical The objective of the Delta Kress Tactical strategy is to be profitable and avoid losses in both positive and negative equity market environments and to outperform the S&P 500 Index each calendar year. The strategy primarily involves purchasing and selling U.S. equities coupled with holding the account in cash when the equity market is expected to depreciate. Purchase and sales of securities is partly based on a systematic analysis on certain technical indicators. The strategy may at times cause portfolios to hold significant amounts of cash. Investors should bear in mind that even when accounts hold significant amounts of cash, earning potentially lower rates of return,

they will nevertheless be charged significant management fees. Delta Kress Tactical strategy may not be suitable for risk-averse clients or permissible for certain retirement accounts. Risks include the possibility that investors could lose their entire investment. In addition, because the strategy involves buying and selling securities on a short-term basis, generally at least every few months, the client accounts may incur short-term capital gains and losses, which are taxed less favorably than investments held for more than one year.
Delta Blue Chip Growth Blue Chip Growth is a concentrated, bottom-up stock picking strategy that seeks to outperform the S&P 500 through the full investment cycle. The strategy uses fundamental analysis to invest in individual stocks and focuses on intrinsic value growth of those stocks over time. The mandate of the strategy is to be fully invested in stocks at all times. Blue Chip Growth is unconstrained with regards to value or growth weightings, size weightings, sector concentration, or stock concentration. The manager allocates capital to where he sees the best relative value among equities at any given time even if that leads to significant concentration in sectors and/or individual stocks.
Delta Custom Delta works with clients to understand their financial conditions and goals. Delta performs in-depth analysis to provide clients with information necessary to making informed investment decisions and understand likely investment scenarios and trade-offs. With the client, Delta designs and implements investment plans that will help clients achieve their financial goals. These investment plans and portfolio holdings may be specific to each client and are designed to meet the needs of an individual client. These custom designed client accounts may hold a variety of assets including ETFs, stocks, bonds and mutual funds. Positions are not style or market capitalization constrained and may be actively managed. Delta may seek diversification in client accounts through use of various investment management techniques and a broad array of asset types including global equities, bonds, commodities and currencies. Delta monitors and reviews the investments and managers selected to ensure custom investment plans are serving the particular needs of each client.
Alternative Investments Based on client investment objectives and financial condition, Delta may recommend investing in alternative assets. Generally, Delta considers alternative investments to be investments that do not offer daily liquidity, are in pooled investment vehicles such as limited partnerships and may place restrictions on capital withdrawals. Alternative investments do not fall into one of the conventional categories including stocks, bonds, exchange traded funds (ETFs), mutual funds and cash.
Alternative investments often require that an investor be an accredited investor. The Securities and Exchange Commission (SEC) defines who is an accredited investor under Regulation D. Accredited investors are legally authorized to purchase securities that are not registered with regulatory authorities like the SEC. An individual accredited investor is defined by an income or net worth threshold.
Accredited investors are presumed to be financially sophisticated so they are able to understand the risks associated with investing in non-standard assets.
The custodians and broker/dealers that work with Delta and also custody alternative assets often apply additional fees and commissions to alternative assets that they do not on conventional, listed securities.
Commissions to buy and sell alternative assets may be substantially higher than standard commission rates and some custodians charge annual holding fees for alternative assets. High fees diminish the investment returns of alternative assets. To make the fees a small percentage of the overall investment return, alternative investments often involve significant position sizes that are often materially larger than what is suitable in a typical Delta account.
Delta Vista ETF Rotation Strategy Delta Vista is a quantitative equity trading strategy that uses machine learning models to establish portfolio market exposure through index exchange traded funds (ETFs). The analysis uses mathematical models that evaluate equity options to make decisions about the short-term direction and volatility of equities. The system analyzes all equity option activities in the U.S. options market to create about forty machine learning models. These models are used to predict the behavior of the underlying assets under different market conditions. The machine learning system uses the models to provide recommendations to maximize the Sharpe/Sortino ratios of a proposed portfolio of equity index ETFs. The machine learning system provides daily position recommendations as well as stop-loss and profit-taking criteria. Through the purchase of both standard and inverse ETFs, the strategy may achieve positive absolute performance in both up and down equity markets.
401k Held-Away Account Management We use a third party platform, Pontera Solutions, Inc., to facilitate management of held away assets such as defined contribution plan participant accounts, with discretion. The platform allows us to avoid being considered to have custody of client funds since we do not have direct access to client log-in credentials to affect trades. We are not affiliated with the platform in any way and receive no compensation from them for using their platform. A link will be provided to the client allowing them to connect an account(s) to the platform. Pontera is not registered with the Securities and Exchange Commission or the Department of Labor. Pontera is SOC 2 certified and employs bank-level encryption, security architecture, and regular pen testing to ensure that client data is protected. Once client account(s) is connected to the platform, Delta will review the current account allocations. When deemed necessary, Delta will rebalance the account considering client investment goals and risk tolerance, and any change in allocations will consider current economic and market trends. The goal is to improve account performance over time, minimize loss during difficult markets, and manage internal fees that harm account performance. Client account(s) will be reviewed at least quarterly and allocation changes will be made as deemed necessary.
Assets under management As of December 31, 2023, we manage assets of $628.9 million on a discretionary basis and no assets on a non-discretionary basis.