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Privacy Information .......................................................................................................................... A
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Description of Advisory Firm
L&S Advisors, Inc. (“L&S,” “we,” “our,” or “us”) is a privately-owned corporation headquartered in Los
Angeles, CA. L&S was originally founded in 1979 and dissolved in 1996. The two founders and majority
shareholders, Sy Lippman and Ralph R. Scott, reformed the corporation in May 2006, and the firm
registered as an investment adviser with the U.S. Securities and Exchange Commission in June 2006.
Fiduciary Duty
Registered investment advisers are considered fiduciaries under federal law. Our fiduciary duty carries
with it an obligation to act in the best interest of our clients pursuant to a relationship of trust and
confidence. It encompasses a
duty of care and a
duty of loyalty.
Duty of Care
The duty of care includes, among other things,
1. the duty to provide advice that is in the best interest of the client;
2. the duty to seek best execution of a client’s transactions where the adviser has the
responsibility to select broker-dealers to execute client trades; and
3. the duty to provide advice and monitoring over the course of the relationship.
The duty to provide advice suitable to each client based on a reasonable understanding of the client’s
objectives is a critical component of the duty of care. Providing suitable advice includes making a
reasonable inquiry into the client’s financial situation, investment experience, and financial goals and
then updating this information as necessary throughout the course of the relationship to reflect the
client’s changing objectives over time and adjusting the advice we provide to reflect any changed
circumstances.
When L&S has the responsibility to select broker-dealers to execute client trades in discretionary
accounts, we seek to trade such that the client’s total cost or proceeds in each transaction are the most
favorable under the circumstances. In doing so, we consider the full range and quality of a broker’s
services and so the determinative factor is not necessarily the lowest possible commission cost but
whether the transaction represents the best qualitative execution. Moreover, we periodically and
systematically evaluate the execution we receive on behalf of our clients.
Our duty of care includes an obligation to provide advice and monitoring at a frequency that is in the
best interest of the client, taking into account the scope of the agreed relationship. This scope is
indicated by the duration and nature of the services as outlined in each client’s advisory arrangement
and extends to all personalized advice provided to clients.
Duty of Loyalty
L&S adheres to a duty of loyalty where we seek to serve the best interests of our clients and never
subordinate the interests of our clients to our own. Simply put, L&S cannot place its own interests ahead
of the interests of our clients. In observance of this duty, we must make full and fair disclosure to clients
of all material facts relating to the advisory relationship. Further, we also seek to eliminate or at least
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expose through full and fair disclosure all conflicts of interest which might incline L&S, consciously or
unconsciously, to render advice that is not disinterested. We believe that in order for disclosure to be
full and fair, it should be sufficiently specific so that each client is able to understand the material fact or
conflict of interest and make an informed decision whether to provide consent. Consequently, we
provide this ADV 2A brochure to all prospective clients at or before entering into a contract so that they
can use the information within to decide whether or not to enter into an advisory relationship.
Advisory Services Offered
Investment Management Services
L&S provides continuous and regular investment supervisory services on a discretionary basis. Sy
Lippman, Ralph R. Scott, Stephen Seo, Craig Weston, Kenneth Malamed, Matthew Nussbaum, Ofer Ben-
Menahem, and Heather Liu work with clients and have the ongoing responsibility to select investments,
based upon the objectives of the client, as to specific securities or other investments that they purchase
or sell in client portfolios.
L&S primarily offers different portfolio types for managing client accounts, and clients may request to
further modify these strategies to fit their particular needs and objectives. We describe the investment
strategy for each portfolio type in
Item 8 – Methods of Analysis, Investment Strategies, and Risk of Loss
below. Additionally, client-specific investment strategies and/or additional strategies geared toward
preserving the integrity of incoming portfolios may be offered at the client’s request subject to L&S’
discretion.
Depending on the strategy selected, L&S will primarily utilize the following investment types when
making investment purchases in client accounts:
1. Equity securities including stocks and foreign securities listed on US exchanges (ADRs)
2. Securities with equity and debt characteristics including preferred stocks
3. Fixed income securities, such as corporate bonds
4. Exchange traded funds (ETFs)
5. Money market funds, cash equivalents and cash
Additionally, L&S’ investment selections depending on the individual investment objectives and needs of
the client may include:
1. Municipal bonds
2. U.S. government securities
3. Open-end and closed-end mutual funds
4. Options contracts on securities
5. Real estate investment trusts (REITs)
6. Alternative investments such as private equity, private lending, and private REITs
L&S may also occasionally utilize additional types of investments if they are appropriate to address the
individual needs, goals, and objectives of the client or in response to client inquiry. L&S may offer
investment advice on any investment held by the client at the start of the advisory relationship. We
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describe the material investment risks for many of the securities that we utilize under the heading
Specific Security Risks in
Item 8 below.
We discuss our discretionary authority below under
Item 16 - Investment Discretion. For more
information about the restrictions clients can put on their accounts, see
Tailored Services and Client
Imposed Restrictions in this item below.
We describe the fees charged for investment management services below under
Item 5 - Fees and
Compensation.
Sub‐
Advisory Relationships
Clients can also access L&S’ investment management services through unaffiliated third parties under a
sub-advisory relationship. L&S has entered into sub-advisory agreements for portfolio management with
outside managers. The fees L&S receives under these arrangements are described below under
Item 5 -
Fees and Compensation.
Financial Planning
L&S does not offer financial planning services on a stand-alone basis. However, we generally offer
financial planning advice at the request of our investment management clients at no additional charge.
As part of the financial planning process, we collect information about the client’s financial situation and
needs, which may include net worth, income, expenses, taxes, investments, retirement plans, life
insurance, disability insurance, health insurance, long term care insurance, business agreements, divorce
papers, pre-nuptial agreements, estate documents, and any other documents that pertain to their
overall financial picture. In addition, L&S asks the client about their future goals and objectives. We then
develop a written personalized plan including specific recommendations. L&S offers to work with the
client to provide advice regarding a particular aspect of the client’s financial situation. Areas of focus
might include:
1. Preparing for or living in retirement
2. Investment strategies
3. Estate and gift planning
4. Income tax planning
5. Stock option analysis and planning
6. Insurance overview
7. Family savings and cash flow planning
8. Marital and cross-border planning
9. Education planning and funding
10. Debt management
11. Employee benefit usage
12. Other, as determined between L&S and the client
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L&S brings expertise in the above areas and works directly with the client and, when applicable, with
their other trusted third-party experts. Together, we focus on the client’s individual objectives and goals
in developing a comprehensive financial plan that seeks to meet the client’s specific needs.
L&S does not provide legal or accounting services and does not prepare legal documents or tax returns.
Limitations on Investments
In the event L&S is managing assets within a retirement plan such as 401(k), 403(b), or other employer
plan, L&S is limited to those investment providers and investment options chosen by the plan
administrator.
Tailored Services and Client Imposed Restrictions
L&S manages client accounts based on the investment strategy the client chooses as discussed below
under
Item 8 - Methods of Analysis, Investment Strategies, and Risk of Loss. L&S applies the selected
strategy for each client based on the client’s individual circumstances and financial situation. We make
investment decisions for clients based on information the client supplies about their financial situation,
goals, and risk tolerance. Our investment selections may not be suitable if the client does not provide us
with accurate and complete information. It is the client’s responsibility to keep L&S informed of any
changes to their investment objectives or restrictions.
Clients may also request their accounts to be margined and/or to place restrictions on the account such
as when a client needs to keep a minimum level of cash in the account or does not want L&S to buy or
sell certain specific securities or security types in the account. L&S reserves the right not to accept
and/or terminate management of a client’s account if we feel that the client-imposed restrictions would
limit or prevent us from meeting or maintaining the client’s investment strategy.
Wrap Fee Programs
L&S also manages accounts in wrap fee programs sponsored by other financial services firms. As part of
these programs, the client pays a single bundled fee to the company offering the wrap fee program,
instead of paying separately for L&S’ advisory services, commissions on transactions, custodian fees, and
other transaction-related fees. The company sponsoring the program then pays L&S a portion of the
wrap fee for our investment management services. L&S chooses investments and manages the accounts
of clients in the wrap fee program the same way we manage other client accounts with similar
objectives.
Assets Under Management
L&S manages client assets in both discretionary and non-discretionary accounts on a continuous and
regular basis. As of March 31, 2024, the total amount of assets under our management was:
Discretionary Assets $1,006,898,005
Non-Discretionary Assets $ 0
Total Assets $1,006,898,005
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