Disclosures

  1. No Guarantees.  Past market and investment performance should not be taken as representative, or a guarantee, of future performance by CCM.  There is always a risk of loss, including the possibility of loss of principal when investing in public and private markets, especially during periods of high market volatility, and when investing in securities with limited trading opportunities such as private investments and illiquid securities.  The results for individual accounts for different periods may vary significantly.  Investors should carefully consider these risks in the context of their overall objectives, risk tolerance, time horizon, and asset allocation needs.  Reference to an investment security anywhere on this website is not a recommendation to buy, sell or hold that or any other security.  In no event is CCM, its employees or partners liable for any result, loss or damages incurred from any action taken or decisions based on the information contained in this website or any Third Party website.
  2. Exclusions.  If you live in a state that does not allow disclaimers of implied warranties, our No Warranty disclaimer may not apply to you.
  3. Violation of Terms.  Violation of CCM's Terms and Conditions of Use may result in suspension of access, with or without notice, at any time.
  4. Amendment of Terms.  CCM's Terms and Conditions of Use may be updated or changed at any time.  Continuing to use the website will constitute reconfirmation of your agreement to be bound by CCM's Terms and Conditions of Use.       

 

Carmel Capital Management L.L.C.

March 27, 2021

Securities and Exchange Commission Registration Number: 801-61225

Client Relationship Summary (Form CRS) ~ Form ADV Part 3

 

Item 1:   Introduction

Carmel Capital Management L.L.C. (referred to as “CCM” below) is an independent investment advisory firm that has been registered with the Securities and Exchange Commission (referred to as “SEC” below) since 1999.  As an investment adviser, CCM has a fiduciary duty to put its clients’ interests first.  CCM is not a brokerage firm or related to a brokerage firm.  CCM uses brokerage firms that are not affiliated with us to execute transactions for our client accounts.  This Client Relationship Summary (Form CRS) informs clients who are investing for household purposes how to obtain information about investment advisers and their policies.  CCM’s primary disclosure document is its Form ADV Part 2A, which we offer to clients annually.

SEC Notice: “Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.”

Item 2:  Relationships and Services

What investment services and advice can you provide me?

CCM provides wealth and portfolio management through separately managed accounts for trusts, retirement accounts, primarily high net-worth individuals, family offices, corporations, pensions and profit-sharing plans, endowments and foundations.  CCM’s current minimum account size is $4.0 million for new clients.  CCM will consider waivers to the minimum account size; however, CCM, in its sole discretion, may charge accounts below the usual minimum higher investment advisory fees.  CCM manages client accounts on a discretionary basis as authorized in investment management agreements between CCM and its clients.  CCM advisory services are tailored to its clients’ needs as determined by the information provided by each client.  CCM may invest client assets in equity securities, fixed income securities, exchange traded funds and notes, mutual funds, and other securities.  CCM may also recommend private fund investments to eligible clients.  The mix of securities held in client portfolios will vary depending upon CCM’s portfolio management decisions and client investment objectives.  For more information, please read the following sections of our Form ADV Part 2A: Advisory Business; Fees and Compensation; Methods of Analysis, Investment Strategies and Risk of Loss; and Review of Accounts.

Conversation Starters:  The SEC suggests that you may want to ask a financial professional the questions below to start a conversation about advisory relationships and services:

  • “Given my financial situation, should I choose an investment advisory service? Why or why not?”
  • “How will you choose investments to recommend to me?”
  • “What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?”

Item 3.  Fees, Costs, Conflicts and Standard of Conduct

What fees will I pay?

For its investment management services, CCM generally charges an annual advisory fee based on a small percentage of the assets under management in client accounts.  Fees are paid quarterly.  Our investment advisory fee is typically not the only fee clients will pay.  For example, you will pay transaction costs charged by brokers who place trades for client accounts; fees charged by the custodian where your client assets are held and safeguarded, and, if applicable, your share of advisory fees and other expenses charged by mutual funds, exchange traded funds or private funds.  Of course, the fees and costs from these unaffiliated professionals will reduce any amount of money you make on your investments over time.  Please make sure you understand what fees and costs you are paying.  For more information about our fees, please read the Fees and Compensation section in our Form ADV Part 2A.

SEC Notice: “You will pay fees and costs whether you make or lose money on your investments.”

Conversation Starter: The SEC suggests that you may want to ask a financial professional the following to start a conversation about advisory relationships and services: “Help me understand how these fees and costs might affect my investments.  If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”

SEC Required Statement: “When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here is an example to help you understand what this means.”  CCM Example: As a fiduciary, CCM puts client interest first.  Since CCM’s fees are based on a small percentage of assets under management in its client accounts, CCM has an interest in using its professional expertise to grow the assets in client accounts as it also increases our income.

Conversation Starter: The SEC suggests that you may want to ask a financial professional the following question to start a conversation about advisory relationships and services: “How might your conflicts of interest affect me, and how will you address them?”

How do your financial professionals make money?

CCM, nor its owner or staff, accepts compensation for the purchase or sale of securities or other investment products.  Other than its advisory fee, no other compensation is charged to clients by CCM.  Our financial professionals are employees of the firm and are paid a fixed monthly salary.  A financial professional with ownership interests in the firm benefits from the overall profits of the firm.  Of course, any potential conflict of interest is mitigated by CCM’s fiduciary duty.

Item 4.  Disciplinary History

Do you or your financial professionals have legal or disciplinary history?  No.

Search Tool: The SEC directs you to visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

Conversation Starter: The SEC suggests that you may want to ask a financial professional the following questions to start a conversation about advisory relationships and services: “As a financial professional, do you have any disciplinary history? For what type of conduct?”

Item 5. Additional Information

We encourage you to read CCM’s full Form ADV Part 2A, which discloses a wide range of information about how we manage our investment advisory business.

  • You may request a copy of this Client Relationship Summary or Part 2A by calling 831-625-1375.

Conversation Starter: The SEC advises you to ask a financial professional and start a conversation about the contacts and complaints, such as the questions below:

  • “Who is my primary contact person?”
  • “Is he or she a representative of an investment adviser or a broker-dealer?”
  • “Who can I talk to if l have concerns about how this person is treating me?”

 

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