Potomac Advisors

Potomac Advisors operates as a fee-only registered investment advisor. Client fees are typically calculated as a percentage of assets under management, aligning the firm's revenue with portfolio performance rather than transactional commissions. This model removes the incentive to recommend products that generate sales loads or trailing commissions.

No. The firm does not sponsor proprietary mutual funds, ETFs, or private funds. It functions as an allocator, constructing client portfolios from individual securities and third-party pooled vehicles. This open-architecture approach allows the firm to select managers without the bias of an in-house distribution mandate.

The firm's client base includes high-net-worth individuals, multi-generational families, corporate executives, and retirees. Many engagements involve the management of concentrated stock positions — often the result of executive compensation programs or the sale of a family business — where a coordinated tax, estate, and diversification strategy is essential.

The firm develops systematic diversification plans for clients holding large blocks of a single stock. Strategies may include staged selling schedules informed by tax brackets, exchange funds where appropriate, and the use of equity collar structures in certain cases. The goal is to reduce single-security risk while managing the associated capital gains liability.

As a non-custodial RIA, Potomac Advisors does not hold client assets directly. Accounts are custodied at independent third-party institutions — typically major clearing and custody platforms — which provide account statements, trade settlement, and regulatory safeguards. This separation of custody and advice is a standard risk control for fee-only firms.