Overview
A. Firm Information
Sterling Investment Management, LLC (the “Registrant”) is an SEC-registered investment advisor.
Founded in November 1995, we provide sophisticated portfolio management services to high-net-
worth individuals, endowments, foundations, and corporations located throughout the United States.
John H. Payne, CFA, is the founding member and Chief Investment Officer of Sterling Investment
Management, LLC.
Sterling is organized as Limited Liability Company in the State of Arizona. The company has been
in continuous operation since inception.
B. Advisory Services Offered
Introduction
Sterling Investment Management, LLC (“Sterling,” “the Registrant," “the Firm”, “our”, or “we”) is
an independent research-driven investment management boutique. Using a meticulous security
analysis framework rooted in value investing, we provide our clients with long-term investment
strategies designed to complement their unique financial goals by utilizing our structured approach
to portfolio management. Our investment portfolios predominantly consist of individual equity,
fixed income, and alternative securities.
Investment Management
Sterling provides clients with ongoing investment advisory services on a fee-only basis. Portfolios
may include the common equity, preferred stock, and debt of domestic and international companies,
municipal and private-placement debt securities, REITs, MLPs, and alternative assets. In addition,
Exchange Traded Funds (ETFs) may be implemented for risk hedging purposes, or to satisfy unique
client investment objectives.
Each portfolio is individually customized to align with our clients’ financial goals. All security
selection and asset allocation decisions are predicated upon each client’s risk tolerance, time horizon,
and unique financial and investment goals.
Portfolios
are constructed with the following underlying goals: maximize total returns while
assuming an appropriate level of risk.
Sterling approaches securities analysis from the perspective of a business owner; the firm seeks to
hold positions in businesses that have high probabilities of generating attractive returns on invested
capital over a long-term time horizon.
Investment management services are performed on a discretionary basis. Investment guidelines and
restrictions must be provided to us in writing. For more information on Sterling’s discretionary and
non-discretionary asset management practices see Item 16 – Investment Discretion.
Financial Planning
Sterling provides consultation services involving the analysis of a client’s financial situation. This
commonly takes the form of a financial plan but may solely focus on a topic such as retirement
planning, college planning, or cash flow analysis.
In preparing a financial plan for a client, Sterling gathers information through personal interviews
and document requests. Should a client implement the recommendations contained in the financial
plan, Sterling suggests that the client work closely with his or her attorney and/or accountant and
share the recommendations. Consulting Services may be charged on an hourly basis of $500/hr. or
as a flat fee but are usually covered under the Investment Advisory Fee for clients that have assets
under our management.
C. Wrap Fee Programs
The Registrant does not place client assets with any wrap fee programs. All management services
are performed by the Registrant on behalf of its clients.
D. Assets Under Management
As of March 20, 2024, Sterling’s Assets Under Management are as follows:
Discretionary Assets $371,202,026
Non-Discretionary Assets $0
Total Assets $371,202,026