Frequently Asked Questions
What does Maxim Partners do?
We are an investment advisor that creates and actively manages investment accounts for clients. We offer our portfolio management services to individuals and families, pension and profit sharing plans, trusts, estates, charitable organizations, corporations and other business entities, including other investment advisors, endowments, foundations, hedge funds and private funds.
Is Maxim Partners regulated?
Yes. We are regulated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Commissioner of Financial Institutions of Puerto Rico. All personnel who deal with clients or are involved in investment management have passed the Series 65 exam, called the Uniform Investment Adviser Law Examination and are registered in any jurisdiction which requires registration. While the firm and its associates may be registered and/or licensed within a particular jurisdiction, that registration and/or licensing in itself does not imply an endorsement by any regulatory authority, nor does it imply a certain level of skill or training on the part of the firm or its associated personnel.
Who owns Maxim Partners?
We are owned by Joel Arberman, who is our founder, chief investment officer, chief compliance officer and investment advisor representative.
Will you call me before each investment is made?
No. All client accounts are managed with discretionary authority. Discretionary authorization allows us to implement investment strategies and trading decisions, including the specific securities and the amount of securities to be purchased or sold for your account without your prior approval to each transaction.
Am I in control of the relationship?
Yes. If you are ever unhappy with our service or performance, you may notify us or Interactive Brokers that you want to remove us as your investment advisor. You could also transfer your account to a new custodian at anytime. While we would value our relationship and would be sad to see you leave us as a client, you are always in control.
Is a long-term commitment required?
No. You may terminate our service at any time without our consent or approval. If you terminate before the end of a calendar quarter, you will only be charged fees associated with the number of days in the investment period that we provided service for.
Can I engage your services if I do not live near your office?
Of course. Our financial advisors are available by telephone, video conference and face-to-face when at our office if you visit or at a location near you if we are traveling.
Can you provide references?
While we are aware that client references may be provided by other firms seeking to gain your trust, there are specific rules that prohibit the use of testimonials for advertising purposes in our profession. You may read the rule set forth by the United States Securities and Exchange Commission here.
Where can I find your historical investment performance?
We do not provide historical performance information at this time because of regulatory hurdles and third party testing requirements. However, you are welcome to discuss our investment performance with anyone who may have recommended you to us. Please note that past performance is not indicative of future results and investments involve risk.
Where can I find regulatory information about Maxim Partners and its financial advisors?
You can get more information by contacting us, from our SEC Form ADV Part 2A (firm brochure) and from the SEC’s website at www.adviserinfo.sec.gov. Click on the “Investment Adviser Search” link and then search for “Investment Adviser Firm” using the firm’s CRD/IARD number, 284529.
What is your minimum account size?
To establish a relationship, we generally require a minimum of $250,000 in assets in account(s) we manage for an asset-based fee, or a minimum of $1,000,000 in assets in account(s) that we manage for a performance-based fee. At our sole discretion and subject to any applicable rules and regulations, we may wave the minimum account size and may combine account values for you and your minor children, joint accounts with your spouse and other types of related accounts to meet the stated minimum.
Aside from portfolio management, what other services do you provide?
We do not provide legal, accounting, tax, financial planning, insurance, annuity or any other services. With your consent, we may refer you to other professional advisors, such as an accountant, attorney or insurance representative. While these referrals are based on our best information, we do not guarantee the quality or adequacy of the work provided by these referred professionals. We do not have an agreement with or receive fees from these professionals for these informal referrals. Any fees charged by these other entities for their services are completely separate from our fees.
Where do I open my account?
Please contact us before doing so, but each of our clients opens investment accounts in their own name at Interactive Brokers, LLC, which is an unaffiliated custodian that is a FINRA member, SIPC member and an SEC-registered broker/dealer. They are a publicly traded company with $5 billion in corporate assets and more than 330,000 client accounts.
Can I transfer an existing account to Interactive Brokers?
Of course. After you engage our investment advisor services, we will send you an invitation to open an account at Interactive Brokers. Once your account is open, we would process the necessary paperwork on your behalf to complete the transfer of assets.
Who has access to my account?
Only you. We do not have access to your account. Our custodian, Interactive Brokers, holds your investments and cash. We only make investment decisions for your accounts.
Can anyone at Maxim Partners withdraw funds or securities from my account?
No. Unless a client provides written instructions to us and Interactive Brokers as custodian of client assets, we do not have the ability to access any client account to withdraw cash or move securities. However, within our investment management agreement, each client provides Interactive Brokers with authority to calculate our investment advisor fee and to make a quarterly withdrawal pursuant to your written agreement with us.
How are you able to implement trades in my Interactive Brokers account?
Each of our clients completes an investment advisor agreement which authorizes us as the investment advisor to buy and sell investments in their account and authorizes Interactive Brokers to calculate and pay us the agreed upon investment management fees. Unless a client provides written instructions to us and Interactive Brokers as custodian of client assets, we do not have the ability to access any client account to withdraw cash or move securities.
How do I track my account?
Clients can log into their own accounts at any time to see their cash balance, securities owned, brokerage commissions and investment management fees.
Where do I send my check or securities?
Never to us. All checks and securities must be deposited in your own account at Interactive Brokers.
Is my investment capital pooled or co-mingled with other investors?
No. Each of our clients opens their own investment account in their own name.
Who should I call if I have questions?
Always contact your financial advisor directly.
Are there any fees to review my current portfolio?
No! Contact your financial advisor and we’d be glad to review any portfolio you currently manage on your own or that is managed by another financial advisor.
Do you charge any upfront fees?
No. Our investment advisory fees are charged retroactively for each investment period.
What are your fees?
The compensation we earn for the provision of investment advisory services is generally comprised of management fees based on a percentage of capital under management. Certain clients may be charged a performance based fee in addition to an asset based fee or as an alternative. Fees and compensation are described within each investment advisory agreement between each client and us.
Are there any hidden fees that benefit Maxim Partners?
No. There are no fees for setting up or closing an account. There are no maintenance fees or other billing or reporting fees. Trading commissions are paid directly from each client account to Interactive Brokers and we do not receive any part of it.
How are your fees paid?
At the start of each calendar quarter, each account is charged the agreed upon percentage of account value, performance-based fee or a combination. With your permission, Interactive Brokers calculates and automatically deducts the advisory fee based on the value of the assets held in the client’s account at the end of each quarter.
Are you compensated by any third-parties?
No. We only represent our clients and are not compensated by anyone except our clients. We do not sell annuities, insurance, mutual funds or financial planning services and are not paid any part of brokerage transaction fees, commissions or trails.
What will I be invested in?
We typically invest in common stock, preferred stock, exchange traded funds, closed-end funds, bonds and other securities. As we strive to achieve your portfolio objective, there may be times when a client account is partially or entirely in all-cash or cash-equivalent positions.
Do you use margin?
Yes, if suitable and authorized by our client.
Do you use options?
Yes, if suitable and authorized by our client.
Will I always be fully invested?
No. This is a key point of our investment philosophy and one way we differentiate with other firms. We believe that active portfolio management should reduce exposure when assets prices are or are likely to decrease in value. We believe protecting client assets is paramount to their investment results and our long-term business success.
How often do you re-balance my account?
We monitor accounts in real-time when U.S. markets are open and make adjustments regularly. Aggressive growth accounts might have daily adjustments while more conservative accounts are adjusted far less frequently.
What is your view about losses?
Losses are a part of investing. We believe in cutting losses before they can make a significant impact on account values because we believe protecting investment capital is critical to investment success.
Do you believe in averaging down?
Averaging down involves making an additional investment when the existing position is already at a loss. Generally, we will not add investment capital to losing positions.
What is the difference between a broker and advisor?
There are a number of differences. We believe the important ones are that an advisor focuses on the relationship, provides advice and collects a fee, while a broker is focused on the transaction, does not have a fiduciary obligation to put the client first and is compensated by commissions.
What is Technical Analysis?
Technical analysis involves studying past price patterns and trends in the financial markets to predict the direction of both the overall market and specific stocks.
What is Fundamental Analysis?
Fundamental analysis involves analyzing individual companies and their industry groups, such as a company’s financial statements, details regarding the company’s product line, the experience and expertise of the company’s management, and the outlook for the company’s industry.
What are Margin transactions?
A securities transaction in which an investor borrows money to purchase a security, in which case the security serves as collateral on the loan.
What is a Short Sale Transaction?
A securities transaction in which an investor sells securities he or she borrowed and sold, in anticipation of a price decline. The investor is then required to return an equal number of shares at some point in the future. A short seller will profit if the stock goes down in price.