The Linden Thomas Difference
The layers of hidden costs and inefficiencies present in pooled index investments like mutual funds and ETFs can significantly impact results. Seldom are investors ever told about the hidden trading cost, herding impact, and pricing disadvantages inherent in mutual funds and ETFs. There’s also very little discussed about the disadvantages of market-cap indexes, where stocks are added, removed, and weighted based primarily on size.
That is why Linden Thomas’ founder, Stephen L. Thomas, along with the team of portfolio experts, set out to build a more efficient, cost-effective, transparent investment firm that builds private portfolios through our tailored privately managed accounts. By doing so, we remove the layers of hidden cost and other disadvantages that impact our clients’ results. Unlike pooled mutual funds and ETFs, each of Linden Thomas and Company’s separately managed accounts are tailored to investors’ needs through individual securities with a focus on maximizing net results to each client.
Below we have outlined what we view as the keys to maximizing investing efficiency, and it is these attributes that distinguish a full-service, professional discipline from retail investing. Our academic approach to portfolio management focuses on enhancing investor results by avoiding the excess layers of hidden costs and replacing them with seven key principles: quality, ownership, cost, control, transparency, risk, and ability to tailor. We pride ourselves on empowering clients with knowledge and transparency, and our work to deploy our clients' capital effectively never ceases.
Through Linden Thomas and Company private portfolios, each investor owns the stocks and bonds directly, taking away the disadvantages of pooling while giving each investor the ability to control both gifting and tax loss harvesting.
Each portfolio is specifically tailored to the individual from the asset allocation all the way down to each individual stock and bond. Unlike mutual funds and model portfolios, our tailored portfolios allow each investor to build the portfolio specifically to their income and growth needs.
Unlike mutual funds and ETFs where investors are pooled, the Linden Thomas and Company private portfolios are built through individual securities where each investor owns and controls each security. This gives investors the ability to control tax loss harvesting and gifting of individual securities.
Equity Earnings Quality
Separately managed equity portfolios utilize quality earnings screens to maximize individual equity results.
Through our Separately Managed Accounts, each investor owns each bond and stock directly. No pooling exists. This allows investors the ability to monitor each holding, net yield and performance of each security.
Through our separately managed accounts, investors own and control securities, and trading cost is eliminated so investors avoid the impact of mutual fund small investor behavior. This also eliminates the multiple layers of fees and hidden trading costs.
Unlike mutual funds and ETFs where ownership and taxes are not controlled by each investor, the Linden Thomas Earnings Focused Indexes give each investor control to manage tax impacts and avoid the built in tax inefficiencies associated with the constant trading that takes place inside mutual funds.
By avoiding the high cost and inefficiencies of retail mutual funds through Linden Thomas separately managed portfolios, you gain not only ownership and control with managed cost, but results are enhanced as well. Over the long term, the results can have a material impact on your wealth.
Learn About Our Innovative Indexes
- Linden Thomas US Equity Large-Cap Quality Growth 50 Index
- Linden Thomas US Equity Large/Mid-Cap Growth 100 Index
- Linden Thomas US Equity Large/Mid-Cap Growth 50 Index
- Linden Thomas US Equity Mid-Cap Quality Growth 50 Index
- Linden Thomas US Equity Small Cap Quality Value 50 Index
- Linden Thomas US Equity All-Cap Quality Growth 150 Index
- Linden Thomas Quality Dividends US Large-Cap Index
- Linden Thomas Quality Dividends US Mid-Cap Index
- Linden Thomas Quality Dividends US Small-Cap Index
Investing is subject to a high degree of investment risk, including the possible loss of the entire amount of an investment. An investor should carefully read and review all information provided by Linden Thomas Advisory Services, LLC ("Linden Thomas"), including, the Form ADV, Part 2A brochure and all supplements thereto, before making an investment.
The information contained herein reflects the opinions and projections of Linden Thomas as of the date of publication, which are subject to change without notice at any time subsequent to the date of issue. Linden Thomas does not represent that any opinion or projection will be realized. All information provided is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. Prospective clients should not treat these materials as advice in relation to legal, taxation, or investment matters.
Statements herein that reflect projections or expectations of future financial or economic performance of investments, including investments in the Linden Thomas Aggressive Growth Tax Adjusted Index (the "Index"), are forward-looking statements. Such "forward-looking" statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or the Fund's actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Any projections and forward-looking statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the confidential offering document. Actual results for any period may or may not approximate such forward-looking statements. Prospective investors are advised to consult with their own independent tax and business advisors concerning the validity and reasonableness of the factual, accounting and tax assumptions. No representations or warranties whatsoever are made by Linden Thomas or any other person or entity as to the future profitability of the Index or the results of making an investment based on the Index. Past performance is not a guarantee of future results.
The Index performance results presented do not represent the results of an actual client and investment, but were achieved by means of the retroactive application of the rules of the Index to a portfolio. This portfolio is hypothetical only and may include estimates, projections, and forward looking and back tested projections. The trades during the back test were not actually executed, and the back tested results are not necessarily indicative of the performance of the Index. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Hypothetical back tested performance results have many inherent limitations, some of which are described herein. In fact, there are frequently sharp differences between hypothetical back tested performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical back tested performance results is that they are generally designed with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results; including, but not limited to, changes in the investment landscape and unexpected changes in the market or economic landscape. Performance posted by system providers may have had little or no experience in trading actual accounts for itself or for customers. Because there are no actual trading results to compare to the hypothetical performance results, clients should be particularly wary of placing undue reliance on these hypothetical performance results. There can be no assurance that these, or comparable results, will be achieved.
Various indices, including, but not limited to the S&P 500 Index and the Russell 2000 Index (each a "Third-party Index") are unmanaged indices of securities that are used as a general measure of market performance, and their performance is not reflective of the performance of any specific investment. The Third-party Index comparisons are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of the Index and each Third-party Index may not be comparable. There may be significant differences between the Index and each Third-party Index, including, but not limited to, risk profile, liquidity, volatility and asset comparison. The performance shown for each Third-party Index reflects no deduction for client withdrawals, fees or expenses. Accordingly, comparisons between the Index and each Third-party Index may be of limited use. Investments cannot be made directly into the Index or any Third-party Index.
By accepting this information, the recipient agrees that it will not divulge any information contained herein to any other party. This presentation and its contents are confidential and proprietary information of Linden Thomas and any reproduction of this information, in whole or in part, without the prior written consent of Linden Thomas is prohibited.