4 A. Describe your advisory firm, how long you have been in business and identify primary
owners.
Beaumont Capital Management LLC ("BCM") is an asset manager based in Boston, Massachusetts.
In 2009, Beaumont Capital Management was created as a division of Beaumont Financial Partners,
LLC in order to deliver tactical, quantitatively driven investment strategies to financial professionals,
institutions, and individuals. In late 2019, Beaumont Capital Management, LLC was spun off from
Beaumont Financial Partners, forming a separate legal entity registered with the SEC effective as of
the close of business on December 31, 2019. In January 2022, BCM was acquired by Algorithmic
Investment Models, LLC (AIM). Both BCM and AIM are now owned by a holding company, Algorithmic
Research + Trading LLC (ART) but continue to exist as separate legal entities and conduct business
as usual.
Beaumont Financial Partners, LLC organized in 1999, and its predecessor firm, Beaumont Trust
Associates, started as a registered investment advisor in 1981. H & Co. Financial Services, Inc. (H &
Co.) was also founded in the early 1980s and merged into Beaumont Financial Partners in October
2000.
Beaumont Capital Management (BCM), powered by Algorithmic Investment Models (AIM), is an asset
manager that provides Al-based, quantitative portfolio solutions designed to give investors attractive
returns and a smoother ride by seeking maximum returns while managing volatility. Additionally, the firm
has a suite of proprietary quantitative tools and machine learning capabilities that can be employed to
develop custom research and investment solutions for RIAs and institutional investors.
4 B. Describe the types of advisory services offered.
As an ETF strategist, BCM offers portfolios based on three quantitatively driven investment systems:
Decathlon, Paradigm, and Sector Rotation. All three systems share a similar philosophy but are
different in construct. The Decathlon system is based on machine learning and uses pattern
recognition technology to find desirable, repeating patterns in the price histories of the ETFs in its
pool. Paradigm seeks to avoid periods of high volatility as large drawdowns often occur during periods
of high volatility, and the strategy is implemented using factor or "smart beta" ETFs. The Sector
Rotation system uses ETFs focused on the sectors of the S&P 500, is trend following, and is based on
the premise that both positive and negative trends, once identified, tend to persist for long periods.
BCM primarily implements its strategies using Exchange Traded Funds (ETFs). BCM predominantly
offers these strategies to investment professionals and institutions via four main channels of business:
(1) Wrap fee programs, also known as Turnkey Asset Management Programs ("TAMPs") and/or Model
Management Platforms (MMPs);
(2) Sub-advisory contracts, including sub-advisor to a mutual fund;
(3) Dual (client) contracts and direct business; and
(4) Solicitor arrangements.
The BCM strategies are offered in Separately Managed Account (SMA), Unified Managed Account
(UMA), model manager and model delivery, and mutual fund formats.
BCM relies on the "Source Advisor" (hereinafter defined as an investment advisor or Registered
Representative who appoints BCM as an investment manager for one or more of their investment
advisory clients' accounts) to successfully implement the know-your-client and suitability requirements
under most TAMP, MMP, and Sub-Advisory arrangements, and BCM is not involved in these
processes for these channels. For dual contract, direct, and solicitor arrangements, in addition to any
Source Advisor's work, BCM will review each client's current financial situation and ascertain their:
Investment objectives;
Risk tolerance, investment time horizons, and income needs;
Current investments and existing portfolio composition; and
Other information pertaining to their unique situation and familial considerations.
BCM will then work with each client to determine an overall asset allocation and help each client
determine if a BCM portfolio might help them achieve their investment goals. BCM does not provide
any other planning, tax, or advisory services.
As noted above, BCM also acts as sub-advisor to a mutual fund: the Decathlon Market Neutral Fund.
Prior to July of 2022, the fund was known as the BCM Decathlon Moderate Fund and followed a
different investment strategy. Advisors Preferred, LLC is the investment adviser to the fund. Advisors
Preferred, LLC is not affiliated with BCM.
Investment Management Services
BCM also provides investment advisory services to individual clients, primarily clients who are
employees of the Firm,
and seeks to tailor its investment management services to meet the needs of its
individual clients. In addition, BCM seeks to ensure, on a continuous basis, that client portfolios are
managed in a manner consistent with those needs and objectives. BCM consults with clients on an initial
and ongoing basis to assess their specific risk tolerance, time horizon, liquidity constraints and other
related factors relevant to the management of their portfolios. Clients are advised to promptly notify BCM
if there are changes in their financial situation or if they wish to place any limitations on the management
of their portfolios. In designing and implementing customized models and portfolio strategies, BCM can
manage, on a discretionary or non-discretionary basis, a broad range of investment strategies and
vehicles. BCM primarily allocates client assets among various investment managers mutual funds,
exchange-traded funds (“ETFs”), closed-end funds (“CEFs”), individual equities, structured products,
options, and debt securities in accordance with clients’ stated investment objectives, risk profile and
financial condition.
4 C. Explain if, and how you tailor your advisory services to the individual needs of clients.
Also, explain if clients may impose restrictions on securities or types of securities.
As an ETF strategist, BCM does not tailor our strategies to investors' individual needs, nor do we allow
restrictions to be placed on an account. Before agreeing to provide investment management services
to sub-advisory, dual contract, and direct clients, BCM requires clients to affirm their understanding
that the BCM strategies do not allow for tailoring to the individual needs of a specific client. To the
extent that a client requires a more individualized service, BCM will not accept such business for lack
of suitability.
For TAMPs, MMPs, institutions, and solicitor opportunities, the Decathlon system is highly
customizable and can be adapted to meet many mandates. Once these mandate strategy variants are
set up, BCM cannot tailor to individual needs per the paragraph above.
4 D. If you participate in wrap fee programs by providing portfolio management services, (1)
describe the differences, if any, between how you manage wrap fee accounts and how you
manage other accounts, and (2) explain that you receive a portion of the wrap fee for your
services.
BCM is a participating manager on multiple wrap programs. In a wrap fee program, a client is charged
a single, bundled, or "wrap" fee for investment advice, brokerage services, and other administrative
services. BCM receives an annual management fee, typically paid quarterly, from the total wrap fee
paid by the client. The total wrap fee and BCM's management fee will vary by strategy, custodian, and
wrap program based on the circumstances and services provided.
Accounts invested in BCM strategies via wrap programs are managed consistently with other clients in
the same strategy. The investment decisions are based primarily on quantitatively researched, rules-
based systems, and all clients invested in a given BCM strategy should have the same investment
allocation and trade dates. In rare circumstances, due to actions of third parties, trades may not settle
on the same date. Each wrap program and/or custodian has its own pre-determined trading
schedules/trade cut-off times, account minimums, minimum fees as well as other terms and conditions
and fees. BCM only receives a pre-determined management fee and receives no other compensation
from a wrap program. Please see Item 5 for more information about fees and compensation.
The wrap program sponsors, also known as Third Party Asset Management Programs (TAMPs) and/or
Model Management Platforms (MMPs), are responsible for trade execution in most instances;
therefore, the performance of two identical strategies may vary from one wrap program to another and
from one custodian to another as trades are executed at different times.
4 E. If you manage client assets, disclose the amount of client assets you manage on a
discretionary basis and the amount of client assets you manage on a non-discretionary basis.
Disclose the date "as of" which you calculated the amounts.
As of December 31, 2023, BCM had ~$2,202,911,265 in total assets under management and assets
under advisement.
The amount of discretionary assets as of December 31, 2023 was ~$155,335,629. This is the number
that was reported as regulatory assets under management on Form ADV Part 1.
BCM's assets under advisement totaled ~$2,047,575,636 as of December 31, 2023. This figure
includes assets from model management programs and turnkey asset management programs.