A. Who is Fortis?
Fortis Capital Advisors, LLC (“Fortis” or the “Firm”, “we,” “us,” or “our”) offers investment advice and
financial planning services on individual securities and portfolios of securities. The Firm was founded in
2020 in Prairie Village, Kansas and is owned by Robert M. Hagg, Donatella Malitsky, and Roman
Moldavsky as a Delaware Limited Liability Company.
B. What services do you offer?
Portfolio Management Services. Fortis provides ongoing portfolio management services to individuals,
families, businesses and other investment advisers. When providing portfolio management services,
the Firm not only makes recommendations related to investments, but also implements these
recommendations and provides ongoing monitoring and management of each account. Each portfolio is
tailored to the individual needs of a particular client (whether an individual, a family or a business)
through an assessment conducted prior to an engagement. Clients may impose restrictions related to
the level of discretion granted, the types of investments used, etc. Clients that decide to engage Fortis
on a non-discretionary investment basis must be willing to accept that Fortis cannot affect any account
transactions without obtaining prior consent to any such transaction(s) from the client. Thus, in the
event of a market correction during which the client is unavailable, Fortis will be unable to effect any
account transactions (as it would for its discretionary clients) without first obtaining the client’s consent.
Terms of an actual engagement, including description of service, limitations and restrictions, fees, etc.,
are all detailed before any engagement begins in a written client agreement.
Financial Planning and Consulting Services. Fortis provides financial planning and/or consulting
services (including investment and non-investment related matters, including estate planning, insurance
planning, etc.) on a fixed fee or hourly fee basis. Prior to engaging Fortis to provide planning or
consulting services, clients are required to enter into a Financial Planning and Consulting Agreement
with Fortis setting forth the terms and conditions of the engagement (including termination), describing
the scope of the services to be provided, and the portion of the fee that is due from the client prior to
Fortis commencing services. The client always retains absolute discretion over all such implementation
decisions and always has the right whether to accept or reject any recommendation from Fortis. Please
Note: It remains the client’s responsibility to promptly notify Fortis if there is ever any change in their
financial situation or investment objectives for the purpose of reviewing, evaluating or revising Fortis'
previous recommendations and/or services.
As indicated above, Fortis may provide financial planning and related consulting services regarding
non-investment related matters, such as estate planning, tax planning, insurance, etc. Neither Fortis
nor its representatives serve as an attorney or accountant, and no portion of its services should be
construed as legal or accounting advice. Accordingly, Fortis does not prepare estate planning
documents or tax returns. To the extent requested by a client, Fortis may recommend the services of
legal or tax professionals. Clients are reminded that they always have the right to decide whether to
engage the services of any such recommended professional.
Implementation of Financial Planning Recommendations. The client retains absolute discretion over all
such implementation decisions and always has the right whether to accept or reject any
recommendation made by Fortis or its representatives or any affiliated entities. Clients may be offered
insurance products through Fortis' affiliate Fortis Brokerage Services, Inc., a New York licensed
insurance agency. In the event clients purchase any offered insurance products, commissions will be
paid to the above insurance agencies and the licensed representative, which is a conflict of interest.
Fortis will exercise its fiduciary duty in regard to any sale of such insurance products and clients are
reminded that they always have the right to decide whether to act on any such recommendations and to
purchase any insurance products from anyone they so choose. Such recommendations will only be
made in the clients best interest.
Tax Planning and Preparation. Clients may be offered tax planning and preparation services through
Fortis' affiliated entity, Tutum Strategies, LLC, or through an entity associated with an Advisor. In the
event that the Client engages any of these entities for their services, the advisor and/or Fortis will
benefit from that engagement, which causes a conflict of interest. The Client retains absolute discretion
over all such engagement and always has the right to accept or reject any recommendation made by
Fortis or its representatives or any affiliated entities. In addition, these services may or may not be
bundled along with the asset management pricing or financial plan pricing. Please discuss with your
Advisor regarding services provided.
Client Obligations. In performing its services, Fortis shall not be required to verify any information
received
from the client or from the client’s other professionals, and is expressly authorized to rely
thereon. Moreover, each client is advised that it remains their responsibility to promptly notify Fortis if
there is ever any change in their financial situation or investment objectives for the purpose of
reviewing, evaluating or revising Fortis' previous recommendations and/or services.
Fortis shall provide investment services specific to the needs of each client. Prior to providing
investment services, an investment adviser representative will ascertain each client’s investment
objective(s). Thereafter, Fortis shall allocate and/or recommend that the client allocate investment
assets consistent with the designated investment objective(s). The client may, at any time, impose
reasonable restrictions, in writing, on Fortis' services.
Educational Workshops. Fortis provides educational workshops for those desiring information on
personal finance and investing. Topics may include issues related to general financial planning,
educational funding, estate planning, retirement strategies, insurance planning and various other
current economic or investment topics.
C. Do you customize your services?
Yes. We believe in providing customized investment advice to clients, and each Fortis' investment
advisor representative (“Advisor”) retains the authority to implement his or her own investment and
financial planning styles. Prior to making an investment recommendation or implementing an
investment strategy, we work with you to understand your financial needs and risk tolerance.
For certain clients, Fortis uses model portfolios together with a specific set of recommendations for
each client based on their personal restrictions, needs, and targets. If we use these model portfolios,
the client will not be able to impose restrictions on investing in certain securities or types of securities in
accordance with their values or beliefs unless the model portfolios are designed to accommodate such
values or beliefs. You will be responsible for notifying us of any updates regarding your financial
situation, investment objectives, or risk tolerance and whether you wish to impose or modify any
existing investment restrictions.
D. Do you have a program that wraps brokerage and advisory fees into one fee?
Yes. A wrap fee program is an investment program in which the client pays one stated fee that includes
management fees, transaction costs, and other administrative fees. Clients should refer to the
sponsor’s Wrap Fee Program Brochure and consult with their Advisor for any additional information or
questions they may have with respect to the specific wrap fee program. Wrap fee programs may cost a
client more or less than purchasing such services separately through one or more non-wrap account(s),
depending on the volume of trading and the size of a client’s account(s). In general, a wrap fee program
can be comparatively less expensive for actively traded accounts; conversely, non-wrap fee programs
can be comparatively less expensive for accounts in which there is minimal trading activity.
Fortis sponsors one wrap fee program: the Portfolio Manager’s Wrap Fee Program (“PMW”). To learn
more about our wrap fee programs you may request a copy of the PMW Wrap Fee Program Brochure.
If you receive services through a wrap fee program, you will only pay fees based on assets under
management and you will not pay a separate commission, ticket charge, or custodian fee, for the
execution of transactions in your account(s). Fortis and certain service providers, including (if
applicable) the platform provider, the custodian, and portfolio manager, will receive a portion of the fee
as compensation for services.
E. What are your Assets Under Management?
Total Assets Under Management advised on a discretionary basis is $331,804,625.62 as of December
31, 2023. $0 is advised on a non-discretionary basis.
F. IRA Rollover Recommendations
For purposes of complying with the DOL’s Prohibited Transaction Exemption 2020-02 where applicable,
we are providing the following acknowledgement to you.
When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with your interests, so we operate under a
special rule that requires us to act in your best interest and not put our interest ahead of yours. Under
this special rule’s provisions, we must:
● Meet a professional standard of care when making investment recommendations (give prudent
advice);
● Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
● Avoid misleading statements about conflicts of interest, fees, and investments;
● Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
● Charge no more than is reasonable for our services; and
● Give you basic information about conflicts of interest.