Overview
Firm Description
Cortland Associates is a fee based investment advisory firm that commenced business on
February 2, 1989. The firm is owned by two principals: William Carey, President and Chief
Investment Officer and Thomas Podlesny, Chief Operating Officer.
Advisory Services
Cortland Associates manages two types of client investment portfolios-equity and balanced
portfolios. Equity accounts are primarily invested in domestic and international publicly
traded common stocks, although periodically, equity oriented exchange traded funds and
equity mutual funds may be included in equity accounts. The equity portfolio and the equity
component of balanced portfolios (on a pro-rata basis) are uniformly managed with the
exception of client directed portfolio restrictions. Balanced accounts are accounts that invest
in both equity securities and fixed income securities. A balanced account’s asset allocation
(equity percentage allocation and fixed income percentage allocation) is customized
dependent upon the client’s specific risk tolerance and portfolio income requirements. The
fixed income portfolio of taxable balanced accounts may be invested in municipal bonds, U.S.
Treasury securities, U.S. government agency securities, corporate fixed income securities,
tax-exempt fixed income mutual funds and money market securities. The fixed income
portfolio of tax-exempt balanced accounts may be invested in U.S. Treasury securities, U.S.
government agency securities, corporate fixed income securities, taxable fixed income
mutual funds and money market securities. The allocation of fixed income assets to the
aforementioned securities, duration of the fixed income portfolio and aggregate credit
quality of the portfolio varies depending on the current investment opportunities available
in the fixed income market.
Advisory Service Customization
If a client prefers to not invest in a specific company or industry, Cortland Associates will
exclude those company(s) from their portfolio. In reference to balanced portfolios, the
portfolio’s asset allocation and thereby its equity and fixed income percentage allocations
are tailored for each client based upon their risk tolerance and income requirements.
Wrap Programs or Fee in Lieu Commission Programs
Cortland Associates participates in several brokerage firm fee in
lieu of commissions
programs or “Wrap Fee Programs.” Cortland Associates does not differentiate the
investment management of wrap fee accounts and non-wrap fee accounts. Wrap programs
are sponsored by unaffiliated investment advisory or financial planning firms (each a
“Sponsor”). Each Sponsor is affiliated with or dually-registered as a broker-dealer and
provides execution services to program participants directly or through its affiliates. Under
a wrap fee arrangement, the Sponsor may recommend to the client the retention of Cortland
Associates as an investment advisor; pay Cortland Associates’ investment advisory fee for
services to the client; monitor and evaluate Cortland Associates’ investment performance;
execute the client’s portfolio transactions without commissions being assessed; provide
custodial services for the client’s assets; or provide a combination of these or other services,
all for a single fee paid by the client to the Sponsor. The aggregate wrap fee paid by the client
is not the fee paid to Cortland Associates. Cortland Associates receives a portion of the
aggregate fee from the Sponsor and this percentage varies by Sponsor. The fees paid to the
program Sponsors by participating clients include fees for the execution of client
transactions and accordingly, Cortland Associates is directed by the clients in these
programs to effect transactions for their accounts through the sponsoring broker-dealer or
the Sponsor’s broker-dealer affiliate. In evaluating such an arrangement, a client should
recognize that fees for execution are not negotiated by Cortland Associates. Therefore, it is
the client’s responsibility to determine that the Sponsor offering the wrap fee arrangement
can provide best execution of transactions. The client should also consider that, depending
upon the level of the wrap fee assessed by the Sponsor, the amount of portfolio trade activity
in the client’s account, the value of custodial and other services which are provided under
the arrangement, and other relevant factors, the fee may or may not exceed the aggregate
costs of such services if they were to be provided separately.
Assets Under Management
As of December 31, 2023, Cortland Associates was managing $788,000,000 of assets on a
discretionary basis. Cortland Associates does not manage assets on a non-discretionary
basis.