Hippocratic Financial Advisors LLC (hereinafter "HFA") is a Limited Liability Company organized in the
State of California. The firm was formed in November 2013 and is owned by Ravi Davis.
HFA offers various advisory services, including financial planning, investment management and educational
seminar services. HFA is a fee-only investment management and financial planning firm. The firm does not
sell securities on a commission basis. However, there may be
associated persons1 who participate in
outside activities separate from HFA where they receive commissions as compensation.
Types of Services
HFA offers two types of services that are described below.
WEALTH MANAGEMENT SERVICES
HFA provides investment advisory services, also known as investment management or asset management
services, for client accounts. HFA customizes clients’ portfolios according to their individual risk tolerance,
time horizon and specific goals.
HFA primarily uses an investment approach based on Modern Portfolio Theory, which refers to the process of
reducing risk in a portfolio through systematic diversification across asset classes and within those particular
asset classes. HFA generally adheres to the low fee, broadly diversified investment style and, thus,
recommends low expense ratio mutual funds and ETFs. On a limited basis, HFA may use other types of
investments (i.e., stocks, bonds, options etc.) in our asset allocation strategies and portfolio
recommendations to clients.
Client assets managed by HFA are held in accounts at a registered broker-dealer and qualified custodian,
who will provide clearing, custody, and other brokerage services for client accounts. While HFA may assist
the client in completing the custodian’s paperwork, the client is ultimately responsible for providing all of the
necessary information to establish the account. Clients will retain all rights of ownership on the accounts,
including the right to withdraw securities and cash, vote proxies, and receive transaction confirmations.
FINANCIAL PLANNING
HFA offers clients a range of financial planning and consulting services that may be broad-based or
narrowly focused. These services include, but are not limited to, the following functions:
● Risk Management ● Estate Planning ● Insurance Needs
Analysis
● Cash Flow and Debt
Analysis
● College Planning ● Retirement Plan Analysis
● Employee Benefits Analysis ● Investment
Consulting
● Business Planning
● Retirement Planning
1 The term
Associated Persons refers to HFA’s officers, partners, directors (or other persons occupying a similar status or performing
similar functions), employees or any other person who provides investment advice on HFA’s behalf and is subject to the firm’s
supervision or control.
HFA strongly urges its clients to notify us of any change in their circumstances, and to schedule a review any
time there is such a change. Clients should consider a periodic review even if there is not a substantial
change, because tax laws, estate laws, and investment vehicles are always changing. Additional information
may be found in Item 13 of this brochure.
Conflict of Interest Statement (California Code of Regulations, 10 CCR Section 260.235.2)
In offering financial planning, a conflict exists between the interests of the investment advisor and the
interests of the client. The client is under no obligation to act upon the investment advisor’s
recommendation, and, if the client elects to act on any of the recommendations, the client is under no
obligation to affect the transaction through the investment advisor.
EDUCATIONAL SEMINARS AND WORKSHOPS
HFA provides free educational seminars and workshops from time-to-time for clients and prospective
clients. These seminars and workshops are educational in nature and involve a broad range of financial
planning and investing topics. We present information that is not based on one person’s needs and do not
provide individualized investment advice to attendees.
Client tailored services
and client-imposed restrictions
HFA customizes investment advice and financial plans according to each client’s risk tolerance, time
horizon and specific goals. Clients may impose restrictions on investing in certain securities or types of
securities. (Note that this may not be possible in all
situations, such as when the client invests in mutual
funds and ETFs).
Written Agreements
Prior to engaging HFA to provide investment management and financial planning, clients are required to
enter into a written agreement with HFA setting forth the terms and conditions under which HFA renders its
services.
TERMINATION OF AGREEMENT
Investment advisory agreements can be terminated by either party by giving to the other thirty (30) days
written notice; provided that the Client may at any time, upon delivery of written notice to HFA, terminate
the discretionary authority of HFA. Clients may terminate the investment advisory agreement within five (5)
business days of the effective date of the agreement without any payment of HFA's fee pursuant to
California Code of Regulation, Section 260.235.4(c). If the agreement is terminated after five (5) business
days of its effective date, refunds are given on a prorated basis.
Either party may terminate a financial planning agreement at any time by providing written notice. Clients
may terminate the agreement within five (5) business days of the effective date of the agreement without
any payment of HFA's fee pursuant to California Code of Regulation, Section 260.235.4(c). If the financial
planning agreement is terminated after five (5) business days of its effective date, HFA will be entitled to
compensation for any time and effort expended on preparation of the financial plan or consultation time.
For the purposes of calculating fees, all work performed by us up to the point of termination shall be
calculated at our hourly rate of $300 or the hourly rate currently in effect. In no case shall the fee amount
exceed the agreed upon fixed fee.
ASSIGNMENT OF AGREEMENTS
Agreements may not be assigned without the client's consent.
Wrap fee programs
HFA does not participate in any wrap fee programs.
IRA rollover recommendations
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, 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.
Assets under management
As of December 31, 2023, HFA manages approximately $122,978,926 of client assets on a discretionary
basis and $0 on a non-discretionary basis.
Selection of Other Advisors or Managers
HFA may recommend third-party money managers to manage all, or a portion of, your investment portfolio
through Separately Managed Account (SMA) Platform. After gathering information about your financial situation
and objectives, we will recommend a specific Manager or investment program. Factors that we take into
consideration when making our recommendation(s) include, but are not limited to, the following: performance,
investment strategy, methods of analysis, fees, your financial needs, investment goals, risk tolerance, and
investment objectives. We will periodically monitor the Manager’s performance to ensure its management and
investment style remains aligned with your investment goals and objectives. The SMA Platform provides access
to managers who offer a variety of different strategies. The Manager(s) we select will manage your portfolio and
will assume discretionary investment authority over your account. We will assume discretionary authority to
hire and fire the Manager(s) and/or reallocate your assets to other Manager(s) where we deem such action
appropriate. You may be required to sign additional documents authorizing us to use the platform, select
Managers on your behalf, and directly debit the fees associated with the management of your account.
Information about fees is found in Item 5 – Fees and Compensation.