Description of Services and Fees Cornerstone Advisory, LLC ("Cornerstone") is a registered investment adviser based in Hunt Valley, Maryland. We are organized as a limited liability company under the laws of the State of Maryland. We have been providing investment advisory services since 2006. Donald S. Huber, Jr., Thomas N. Biddison, III and Erik D. Johnson are the principal owners of our firm. Currently, we offer the following investment advisory services, which are personalized to each individual client:
•Portfolio Management Services
•Advisor to Private Fund
•Recommendation of Third Party Asset Managers
•Financial Planning and Consulting Services
•Pension Consulting Services
•Sub-Advisory Services to Registered Investment Advisers The following paragraphs describe our services and fees. Please refer to the description of each investment advisory service listed below for information on how we tailor our advisory services to your individual needs. As used in this brochure, the words "we", "our" and "us" refer to Cornerstone Advisory, LLC and the words "you", "your" and "client" refer to you as either a client or prospective client of our firm. Also, you may see the term Associated Person throughout this brochure. As used in this brochure, our Associated Persons are our firm's officers, employees, and all individuals providing investment advice on behalf of our firm.
Portfolio Management Services We offer discretionary portfolio management services. Our investment advice is tailored to meet our clients' needs and investment objectives. If you retain our firm for portfolio management services, we will meet with you to determine your investment objectives, risk tolerance, and other relevant information (the "suitability information") at the beginning of our advisory relationship. We will use the suitability information we gather to develop a strategy that enables our firm to give you continuous and focused investment advice and/or to make investments on your behalf. As part of our portfolio management services, we may customize an investment portfolio for you in accordance with your risk tolerance and investing objectives. Once we construct an investment portfolio for you, we will monitor your portfolio's performance on an ongoing basis.
If you participate in our discretionary portfolio management services, we require you to grant our firm discretionary authority to manage your account. Discretionary authorization will allow us to determine the specific securities, and the amount of securities, to be purchased or sold for your account without your approval prior to each transaction. Discretionary authority is typically granted by the investment advisory agreement you sign with our firm and the appropriate trading authorization forms. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased for your account) by providing our firm with your restrictions and guidelines in writing. If you enter into non- discretionary arrangements with our firm, we must obtain your approval prior to executing any transactions on behalf of your account.
Outcome Driven Fund, L.P. Our firm is also the investment adviser and management company to the Outcome Driven Fund, L.P. (the "Fund"), a private pooled investment vehicle. The General Partner to the Fund is Cornerstone Management Partners, LLC, an affiliated entity. The objective of the Fund is to use an opportunistic strategy in order to obtain consistent income and reasonable growth in all types of market conditions. The Fund's strategy is to invest in a broad range of securities, the majority of which will be structured notes. The majority of the structured notes will be investment contracts with major investment banks 4 that are registered with the Securities and Exchange Commission. The portfolio will be broadly diversified and will include equity, fixed income, commodity, and interest rate strategies with a lower correlation to traditional equity and fixed income instruments.
Recommendation of Third Party Asset Managers As part of our overall asset management strategy, we may also recommend Third Party Asset Managers ("TPAMs") or programs to manage all or a portion of your account. All TPAMs recommended by our firm must either be registered as investment advisers or exempt from registration requirements. Factors that we consider when making our recommendations include, but are not limited to, the following: the TPAM's performance, methods of analysis, fees, your financial needs, investment goals, risk tolerance, and investment objectives. We will periodically monitor the TPAM's performance to ensure its management and investment style remains aligned with your investment goals and objectives.
Where you have appointed Cornerstone as your agent to buy and sell securities or other investments for your account on a discretionary basis, you have delegated to us the authority to retain one or more TPAM(s) to provide all, or a portion, of the discretionary management services with respect to your account. Cornerstone shall have the discretion to hire and fire any TPAM without your consent. To the extent you participate in a specific program offered by us that is provided through a TPAM or platform, the investments that are available to you through that program may be limited to certain types of securities. Generally, you may not impose restrictions on investing in certain securities or types of securities in accounts managed by a TPAM.
In some cases, you may be required to sign an agreement directly with TPAM(s). In which case, you may terminate your advisory relationship with the TPAM(s) according to the terms of your agreement with the TPAM(s). You should review each TPAM's brochure for specific information on how you may terminate your advisory relationship with the TPAM and how you may receive a refund, if applicable. You should contact the TPAM directly for questions regarding your agreement with the TPAM.
A complete description of the programs and services provided, the amount of total fees, the payment structure, termination provisions and other aspects of each program are detailed and disclosed in: i) the TPAM's Form ADV Part 2A; ii) or other applicable disclosure documents; iii) the disclosure documents

of the portfolio manager(s) selected; or, iv) the TPAM's account opening documents. A copy of all relevant disclosure documents of the TPAM(s) and of the individual portfolio manager(s) will be provided to anyone interested in these programs/managers.
Outcome Driven Strategies, LLC Cornerstone Advisory, LLC is under common ownership with Outcome Driven Strategies, LLC, an SEC-registered investment adviser offering sub-advisory services. A complete description of the programs and services provided by Outcome Driven Strategies, LLC, including the amount of total fees, the payment structure, termination provisions and other aspects of each program are detailed and disclosed in their ADV Part 2A and/or applicable account agreements. Financial Planning Services We offer broad-based and consultative financial planning services. Financial planning will typically involve providing a variety of advisory services to clients regarding the management of their financial resources based upon an analysis of their individual needs. If you retain our firm for financial planning services, we will meet with you to gather information about your financial circumstances and objectives. Once we specify those long-term objectives (both financial and non-financial), we will develop shorter-term, targeted objectives. Once we review and analyze the information, we will deliver a written plan designed to help you achieve your stated financial goals and objectives.
5 Financial plans are based on your financial situation at the time we present the plan to you, and on the financial information you provide to our firm. You must promptly notify our firm if your financial situation, goals, objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to act on any of our recommendations, you are not obligated to implement the financial plan through any of our other investment advisory services. Moreover, you may act on our recommendations by placing securities transactions with any brokerage firm.
Pension Consulting Services We will provide pension consulting services to employee benefit plans and their fiduciaries based upon an analysis of the needs of the plan. In general, these services may include an existing plan review, asset allocation advice, communication and education services where we will assist the plan sponsor in providing meaningful information regarding the retirement plan to its participants, investment performance monitoring, non-discretionary asset allocation services, and/or ongoing consulting.
All employee benefit plans are regulated under the Employee Retirement Income Securities Act ("ERISA"). We will provide consulting services to the plan fiduciaries as described above. Typically, the named plan fiduciary must make the ultimate decision as to retaining the services of such investment advisers as we recommend. The plan fiduciary is free to seek independent advice about the appropriateness of any recommended services for the plan.
Sub-Advisory Services to Registered Investment Advisers We offer sub-advisory services to unaffiliated third party money managers (the "Primary Investment Adviser"). As part of these services, we will provide model portfolios, which the Primary Investment Adviser selects for their clients. We will not directly manage the Primary Investment Adviser's individual client accounts. The Primary Investment Adviser will be responsible for selecting the appropriate model for its clients.
Types of Investments We offer advice on equity securities, certificates of deposit, municipal securities, variable life insurance, variable annuities, mutual fund shares, United States government securities, options contracts on securities, private placements, money market funds, REITs, derivatives, structured products, ETFs and interests in partnerships investing in real estate.
Additionally, we may advise you on various types of investments based on your stated goals and objectives. We may also provide advice on any type of investment held in your portfolio at the inception of our advisory relationship.
Since our investment strategies and advice are based on each client's specific financial situation, the investment advice we provide to you may be different or conflicting with the advice we give to other clients regarding the same security or investment.
IRA Rollover Recommendations Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the following acknowledgment 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, 6 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. We benefit financially from the rollover of your assets from a retirement account to an account that we manage or provide investment advice, because the assets increase our assets under management and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in your best interest.
Assets Under Management As of December 31, 2023, we provide continuous management services for $1,741,867,186 in client assets on a discretionary basis.