Who is ProfitScore Capital Management? ProfitScore Capital Management, Inc. (“ProfitScore”) is a registered investment advisory firm founded to help investors succeed in their efforts to build financial security. 

What differentiates ProfitScore’s investment approach from other money managers?  Whether you hire manager A in your local town or manager B in another state, you will always be faced with the potential bad decisions of that individual money manager.  Institutional investors call this “Manager Specific Risk” and have carefully mitigated this risk from their portfolios.  At ProfitScore, you now have the ability to have your assets managed like you are a large institutional investor.  By collecting a group of some of the very best specialists in disciplines like fixed income, long/short strategies, sector rotation, commodities, foreign equities and real estate, our clients have the opportunity to achieve a better outcome than by relying on a single manager to invest all of their assets.  Think of it as a 4-wheel drive car.  When one wheel slips in the snow, you have three more tires to power your investment assets to their destination.

Describe ProfitScore's investment philosophy and approach to managing money. ProfitScore is an absolute return money management firm whose primary objective is to significantly grow our clients’ assets while mitigating the numerous investment risks our clients face.  There are thousands of money managers providing money management services, so many that it seems there’s a “money manager” on every corner.  It’s difficult to separate the wheat from the chaff, but our clients hire us to manage their investment risk knowing that only through appropriate risk management can they achieve high, risk adjusted returns.    

Is John McClure also one of the investment managers?  Yes.  Mr. McClure and the Investment Policy Committee oversee the entire multi-manager allocation process, but Mr. McClure is also one of the managers on his talented investment team.  Like any manager on the team, his allocation percentage is determined by a statistical algorithm that optimizes risk adjusted returns.   In other words, any individual manager’s allocation percentage is determined by the improvement their return stream makes to the risk adjusted performance of ProfitScore’s investment portfolios.

What experience does ProfitScore have in managing money? During the mid-1990's, Mr. McClure began developing sophisticated quantitative models that are still used today to increase investment performance and to mitigate investment risks for institutional firms. In 1999, he began sub-advising other investment managers and today provides his institutional clients with quantitative based investment research.   In 2002, John became a Registered Investment Advisor and currently offers his services to a select group of high net worth clients.
 
Incorporating powerful multi-manager technology adds no value if you cannot find talented managers to employ on your team.  Mr. McClure has been both Vice President and President of The National Association of Active Money Managers (“NAAIM”), a national organization of absolute return money managers who cumulatively manage over $16 billion.  Through his vast network of industry contacts and hedge fund experience, John has unique access to asset managers who are specialists in their respective fields and investment styles.  John’s industry insight allows his clients to utilize investment experts and methodologies that would otherwise be difficult if not impossible to find in any single investment firm.   

What investment products do you use in your investment portfolios? We currently use exchange traded funds and mutual funds to manage client accounts. 

Who makes the decisions about what to invest in and when to do it? Mr. McClure, his Investment Policy Committee and his team of investment managers make all investment decisions for our ProfitScore portfolios.  Clients are not consulted prior to entering orders on their behalf. 

Does ProfitScore do any retirement, tax, estate or insurance planning? No. ProfitScore will provide suitable investment recommendations regarding our money management services; however, ProfitScore does not provide retirement, estate, insurance or tax planning. 

How are you compensated for the work you do for me? The investment industry is plagued with conflicts of interest because the majority of brokers and advisors are paid commissions by the companies whose products they sell.  To avoid any conflicts of interest, we are paid only by our clients in the form of management fees or, in some cases, performance-based fees.  This ensures that our interest and our clients’ interests are the same.     

What is your fee structure? Accounts will be charged 3.00% on the first $500,000, 2.5% on the next $500,000 and 2% over $1,000,000. Fees are billed quarterly three months in advance.  For specific strategies and for qualified clients, a 1% management fee and 20% performance fees may be charged.

You collect your fee three months in advance. What happens if I cancel management of my assets before three months have passed? If you cancel your management agreement with ProfitScore anytime during a calendar quarter, the unused portion of the fee on a quarterly pro-rated basis will be refunded to you. 

What level of service will I get? Unlike other firms, all ProfitScore clients receive our highest level of customer service.  At ProfitScore, our concierge level service is built around a professional team working together to serve your needs.  Both a company Vice President and a Personal Investment Counselor will work with you from the very beginning of our relationship.  These two highly trained professionals will have a clear understanding of your complete financial picture and will work closely with you on an ongoing basis to make certain that your personal investment goals are closely matched to the investment objectives of your ProfitScore portfolio.  Similar to our investment portfolios, the goal of our client care service structure has been built to exceed your expectations.  In addition to your personal support team, ProfitScore senior management is eager to help you in any way we can.  Simply pick up the phone and give us a call.

Can you give me references of people you've worked with having circumstances similar to mine? Our Privacy Policy does not permit us to disclose information about our clients. This consideration will also be extended to you should you decide to become a ProfitScore client. 

Can you provide me with other financial professionals who are familiar with your work and monitor it for their own clients? Yes, professional references are available upon request. 

What are your account minimums? ProfitScore's minimum account size is $250,000. 

Do you have online access so I can see my accounts? Yes, you can access your account information through our custodian or directly through our web site. To receive your login and password information, please contact your Personal Investment Counselor. 

How often will I receive statements? You will receive regular quarterly statements that detail useful performance information about your account. 

How do I add money to my already established account? Just call your Personal Investment Counselor who will ask you to make a check payable to our custodian and send it to ProfitScore for us to process.

How do I get money from my account if I need it? Just call your Personal Investment Counselor who will arrange for a check to be mailed to your address of record. If you have authorized wire transfers for your account, you may also utilize that option.  We can also deliver your check overnight to your address of record.  A nominal fee will be charged for wire transfers and overnight services. 

Does ProfitScore ever take custody of securities or cash? No. ProfitScore will only process checks for clients that are made out to our custodian. 

Does ProfitScore ever vote proxies for the securities in my portfolio? No. ProfitScore does not vote proxies on behalf of clients. Each client is responsible for voting their own proxies which they will receive directly from the custodian for each of their accounts. 

Does ProfitScore have any Professional affiliations? John McClure has been Vice President and President of the National Association of Active Investment Managers (NAAIM), a nonprofit organization of absolute return money managers who cumulatively manage over $16 billion.  ProfitScore Capital Management, Inc. and its representatives are active members of the NAAIM organization.

What happens if something were to happen to John McClure? Mr. McClure has crossed-trained key staff members to fill the role of Chief Investment Officer.

Do you have a plan to operate in the event of an emergency or disaster? Yes. ProfitScore has a nightly, offsite file backup system in place, as well as an extensive recovery plan. In the event of a building or regional disaster, ProfitScore also has a backup plan for personnel and facilities. 

Do any of ProfitScore's Systems take short positions in the market? Yes. In our most conservative strategies, short positions are used as a hedge to protect client assets in difficult markets.  In our more aggressive strategies, short positions are designed to enhance the growth of our clients’ assets.  We use shorting as a means of growing and/or protecting client assets in negative market conditions. 

Do any of ProfitScore's strategies use margin or other type of leverages? Leveraged mutual funds and exchange traded funds will be used to manage client assets, but margin will not be used in any client accounts. 

Is the performance information I receive from your newsletters and my annual portfolio update net of fees? Yes.  To be conservative, we subtract the maximum fees we charge to these model portfolios.

Why does my portfolio update performance differ from the performance in the ProfitScore Insight newsletter? Our newsletter reports performance on a twice monthly basis for a model investment account that may not exactly reflect the performance of your personal account due to account size and/or management fees.  Your personal performance may also be affected by funds that charge a redemption fee upon their sale. ProfitScore tries not to use such funds but will use them when they are the best or only funds available for a specific strategy.  Generally, the smaller your account, the more your account’s performance will deviate from our model portfolios.