OWNERSHIP/ADVISOR HISTORY
Luminist Capital, LLC was formed in August 2014. It is owned by Luminist Holdings, LLC. It is
a Michigan limited liability company. It was registered as an investment adviser in Michigan in
June 2015 and subsequently became registered with the SEC in July 2022.
ADVISORY SERVICES OFFERED
Prior to the Adviser/Client relationship, the firm may offer a complimentary general consultation
to discuss services available and to give a prospective client time to review services desired.
Investment advisory services begin only after the client and firm formalize the relationship with a
properly executed client agreement. After engaging the firm, the client will be asked to share in a
data gathering and discovery process in an effort to determine the client’s stated needs, goals,
intentions, time horizons, risk tolerance and investment objectives, based upon information
provided by the client and the nature of services requested. The client will then be placed in one
or more of the firm’s portfolios. They are:
Market Participation and Tactical Market Participation Models
The Luminist Capital Market Participation models are designed to provide low-cost passive
participation in a diversified blend of liquid ETFs. The allocation between equities and fixed
income are based upon each investor’s risk appetite. The models are rebalanced quarterly, and
dividends are reinvested according to investor preferences.
The Luminist Capital Tactical Market Participation models are intended to provide low-cost
participation in diversified combinations of liquid ETFs selected for specific market regimes. The
holdings in the models are allocated toward equities, fixed income and alternative assets classes
based upon the prevailing and expected market regimes. The models are rebalanced quarterly and
as market regime shifts occur. Dividends may be reinvested according to investor preferences.
All Weather Models
The Luminist Capital All Weather Models aim to provide investors with improved risk-adjusted
returns compared to their benchmarks across various economic environments. The models invest
in a diversified portfolio of low-cost exchange-traded funds (ETFs) that offer exposure to
commodities, fixed income, and equity sectors, including technology, consumer staples, and health
care. The models are constructed to be resilient across different market conditions, with a focus on
long-term performance. All Weather models are constructed around five core ETFs that are
selected based on their ability to provide broad exposure to key asset classes while keeping costs
low. The models are rebalanced quarterly to maintain target allocations and adjust to changing
market dynamics. Variations of the All Weather model can be tailored to accommodate specific
investor preferences, such as a focus on yield or varying degrees of risk appetite. By adjusting the
allocation weights within the core ETFs or incorporating additional ETFs with different risk-return
profiles, the models can be customized to meet the unique investment objectives and constraints
of individual clients.
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Risk Managed Models
The Luminist Capital Risk Managed Models aim to provide investors with protection against
negative market movements while maintaining upside potential. The models utilize exchange-
traded funds (ETFs) that employ options and option overlays as hedging strategies to mitigate risk
and manage volatility. Variations of these models can focus on yield generation, downside
protection, or upside participation and can be customized to accommodate varying risk appetites.
The models employ a dynamic risk management approach by incorporating ETFs that utilize
options and option overlays to hedge against adverse market movements. These strategies are
designed to provide downside protection during market downturns while allowing for participation
in positive market trends. The models may include ETFs that offer downside buffers or employ
defined protection strategies to limit potential losses. The Risk Managed models prioritize risk
management by employing ETFs with built-in hedging mechanisms and downside protection
strategies. Active monitoring and periodic adjustments ensure that the portfolio remains aligned
with its risk objectives and market conditions. Variations of the Risk Managed models can be
tailored to meet specific investor preferences and risk profiles. Customization options may include
adjusting the allocation weights within different ETFs, selecting ETFs with varying levels of
downside protection or upside participation, or incorporating additional ETFs to enhance yield
generation or risk management.
Stock Portfolio
The firm will create a portfolio consisting mainly of individual stocks. The portfolio will be
tailored the client’s investment goals and objectives. For example, a portfolio may be designed for
growth or income depending upon the specific goals of the client and size of the account.
Financial Planning and Consulting Services
The Adviser offers clients financial planning and consulting services to evaluate their financial
situation, goals and risk tolerance. Through a series of personal interviews and the use of
questionnaires the Adviser will collect pertinent data, identify goals, objectives, financial
problems, potential solutions, prepare specific recommendations and implement
recommendations. As a result of these actions, the Adviser’s advice may be provided on financial
and cash management, risk management, financial issues relating to divorce or marital issues,
estate planning, tax issues, stretch IRA planning, Investment Planning/Asset Allocation, retirement
planning, educational funding, goal setting, or other needs as identified by the client and Adviser.
The Adviser may offer broad-based written planning services, or the client may desire advice on
certain planning components that does not include a written plan; the Adviser can tailor services
as desired by the client.
Selection of Third-Party Investment Advisers
After an initial meeting with the client and when deemed appropriate, we may recommend the
services of an independent investment adviser (“Third Party Adviser”). The recommendation will
depend on the client’s circumstances, goals and objectives, strategy desired, account size, risk
tolerance, or other factors. Working with the client we determine which Third Party Adviser may
be appropriate.
We will review Third Party Advisers prior to making a recommendation to the client. We will
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consider the following factors during its review: fees, reputation, performance, financial strength,
management, price, reporting capabilities, client’s financial situation, client’s goals, client’s needs,
and client’s investment objectives. After its review we will present the client with one or more
recommendations.
If the client wishes to proceed with the recommendation, we will enter into a promoter relationship
with the recommended Third-Party Adviser. The promoter relationship means our firm and the
Third-Party Adviser will have separate rolls while serving the client. In effect, the client will
engage both us and the Third-Party Adviser to serve his/her accounts and we and the Third-Party
Adviser will provide separate services to the client.
Under this arrangement, the Third-Party Adviser will be responsible for portfolio management,
best execution, portfolio reporting, trading, trade error resolution, and custodian reconciliations.
While we will maintain our relationship with the client by monitoring the status of the client’s
accounts with the Third-Party Adviser, make recommendations about the performance of the
Third-Party Adviser, and acting as the client’s primary financial adviser. All questions regarding
the Third-Party Adviser’s services and performance shall be directed to us.
When using the services of a Third-Party Adviser, clients will be given a copy of its Form ADV
Part 2A. Clients are encouraged to read and understand this disclosure document.
TAILORED SERVICES
The firm’s services are individualized to each client. Portfolio management clients may impose
restrictions on investment in certain securities or types of securities. All restrictions must be
presented to the Adviser in writing.
WRAP PROGRAM
The firm does not sponsor or participate in a wrap program. This section is not applicable.
CLIENT ASSETS MANAGED
As of December 31, 2023, the firm manages $128,575,454 in client assets on a discretionary basis
and $0 on a non-discretionary basis.