Overview
A Fulcrum Capital, LLC (“Fulcrum,” “we,” “us,” “our,” “Advisor”) is a Seattle company
registered with the Securities and Exchange Commission as an investment advisor. The
firm was founded in 2007. Fulcrum is employee-owned and pays careful attention to its
obligation to clients to provide long-term continuity of service. Both Michelle Mathieu,
our Chief Executive Officer, and Janet Welcher, our Managing Director, are Managing
Members and each owns more than 25% of the company.
B, C We offer a wide range of investment advisory services to our Clients. Advice and services
are tailored to the stated objectives of the Client(s). Generally, we have the authority to
determine, without obtaining specific Client consent, the securities bought or sold, as well
as the amount of securities bought or sold and commission rates paid. Occasionally clients
will direct us to buy or sell specific securities, or not to buy or not to sell specific securities.
We generally construct portfolios using liquid assets (i.e., assets that may readily be sold
in the public markets). While we don’t limit our advice to certain securities, our portfolios
generally employ individual equities and fixed income securities (i.e., stocks and bonds),
as well as exchange traded funds (“ETF”) and some allocation to cash.
We may also recommend illiquid investments, ranging from unregistered securities
(private placements) that have very low liquidity, to interval funds where the issuer
agrees to redeem a certain amount of the fund’s assets periodically, such as quarterly or
annually. We do not typically seek out and recommend private placements, though we
may do that on occasion. We are more likely to review a specific offering at the client’s
request and then
provide on opinion on the offering’s investment merit. When
recommending or reviewing a private placement, our due diligence is generally limited to
review of the issuer’s offering materials. We do not independently verify issuer
representations. We are not able to use our discretionary authority to invest in private
placements. We recommend illiquid investments only where we believe the client has
sufficient other assets to meet cash flow and other liquidity needs, and where the client
has the wherewithal to tolerate significant loss in the investment.
D We do not participate in any wrap fee programs.
E When we recommend that you rollover retirement assets or transfer existing retirement
assets (such as a 401(k) or an IRA) to our management, we have a conflict of interest. This
is because we will generally earn additional revenue when we manage more assets. In
making the recommendation, however, we do so only after determining that the
recommendation is in your best interest. Further, in making any recommendation to
transfer or rollover retirement assets, we do so as a “fiduciary,” as that term is defined in
ERISA or the Internal Revenue Code, or both. We also acknowledge we are a fiduciary
under ERISA or the Internal Revenue Code with respect to our ongoing investment
advisory recommendations and discretionary asset management services, as described in
the advisory agreement we execute with you. To the extent we provide non-fiduciary
services to you, those will be described in the advisory agreement.
F As of December 31, 2023, we managed approximately $810 million of Client assets on a
discretionary basis and approximately $37 million of Client assets on a non-discretionary
basis.