Overview
Firm Description
Profit Investments serves institutional clients investing in U.S. equities. Based in metropolitan Washington,
DC, Profit Investments was founded in 1996 by Eugene Profit, who had the goal of establishing a first-class
investment adviser that delivered more to its clients than benchmark-beating returns. Eugene Profit is
President and sole owner of Profit Investments.
Types of Advisory Services
Profit Investments offers portfolio management services to state and municipal governments, banks, trusts,
investment companies, estates, corporations or pensions, charitable organizations and profit sharing plans.
Profit Investments’ management of these accounts is guided by the stated objectives and restrictions of each
client as reflected in a written agreement between Profit Investments and the client setting forth the terms and
conditions under which Profit renders its services (collectively the “Agreement”).
Profit Investments may use standardized composite portfolios and/or create customized recommendations in
order to adequately address a client’s needs. The composite portfolios have been created to enable Profit
Investments to establish, trim or eliminate positions on a pro rata basis across all like managed accounts.
Please refer to Item 8 for more information.
Tailored Relationships
Clients may impose reasonable restrictions on the management of their account(s). Every account is
governed by the unique objectives of that client and monitored on a frequent basis (as described in Review of
Accounts below).
Model Provider Programs
Profit Investments provides trading signals regarding its proprietary model portfolios on a real-time,
nondiscretionary basis to certain institutional clients. Profit continuously
reviews, supervises and administers
the model as well as provides ongoing signals to these clients containing the firm’s recommendations for
transactions/re-allocations of assets within the model. Trade recommendations from Profit Investments are
provided to these institutional clients at the same time (or as concurrently as possible) the trades are executed
on behalf of the firm’s managed accounts. Profit does not have discretionary authority over these assets and
will not execute any recommended transactions.
Retirement Plan Services
Profit Investments may also provide certain investment management or investment advisory services to
employer-sponsored defined contribution, defined benefit or profit sharing plans, subject to ERISA. The terms
of any such services are governed by the contract between the Plan Sponsors and Profit Investments and
may differ from the fee schedules shown below.
Profit Investments may perform certain fiduciary services and act as a fiduciary of Plan assets under Section
3(21) or Section 3(38) of ERISA. Such services may include providing recommendations to a Plan Sponsor
who will retain the final decision making authority regarding the selection, retention addition and removal of
investment options. Profit Investments may also provide the firm’s composite portfolios as options within the
Plan and have full discretionary authority over the investment management of the assets within those model
portfolios selected by the Plan and/or the underlying plan participants.
Client Assets
Profit Investments provides continuous and regular management services to discretionary securities
portfolios. As of December 31, 2023, Profit had discretionary assets under management of $180,331,957.