FREQUENTLY ASKED QUESTIONS
Questions we hear most often
If you don't find the answer you're looking for, we'd love to hear from you directly. No question is too basic or too detailed.
Investment Strategy
What is a cash-secured put?
A cash-secured put is an option contract where we agree to buy a stock at a specific price (the "strike price") by a certain date, and we keep enough cash in your account to cover the full purchase. In exchange for this agreement, we receive a premium - which is income for your account. If the stock doesn't drop to our strike price, we keep the premium and can repeat the process. It's like naming your price for a stock and getting paid to wait.
Why do you concentrate portfolios in 10–15 holdings?
We believe deep conviction produces better outcomes than broad diversification for its own sake. Every holding in your portfolio has passed our fundamental, qualitative, and technical analysis. We don't own a stock just because it's in an index - we own it because we would want to own the entire company. Concentration means each position matters, which keeps us disciplined about what enters the portfolio.
Do you follow or try to beat a benchmark?
No. We do not attempt to track or outperform any index with our holdings or sector weightings. Our goal is to preserve your capital and generate consistent income. We believe benchmarks can encourage behavior - like chasing performance or following sector fads - that can harm long-term wealth.
Will my account always be fully invested?
Not necessarily. We generally maintain a cash reserve so we can act quickly when opportunities arise in our highest-conviction names. From time to time, we may also increase cash levels depending on market conditions. We'd rather hold cash and wait for the right entry than force capital into positions that don't meet our standards.
Working With Us
What are your fees?
Our annual advisory fee is 1.0% of assets under management, billed monthly in arrears. Fees are calculated and accrued daily based on the net liquidation value of your account at the end of each trading day. We send monthly invoices showing the amount and calculation of the fee. Fees are negotiable at our discretion. We do not charge hourly fees, subscription fees, commissions, or performance-based fees.
Is there a minimum account size?
Our general minimum to open or maintain an account is $100,000. However, we may accept accounts below this minimum at our discretion.
What is a separately managed account and why do you use them?
A separately managed account (SMA) means your investments are held directly in your name - not pooled with other investors in a fund. You can log in and see exactly what you own, what your balance is, and withdraw cash whenever necessary. We use SMAs because transparency and accessibility are core to how we serve clients. Your assets are never held by Grammatical Capital directly.
Who is your custodian?
We use Interactive Brokers, LLC as our custodian. They are a member of NYSE, FINRA, and SIPC. Interactive Brokers holds your assets, executes trades, and provides competitive interest rates on cash balances. We are independently owned and not affiliated with our custodian.
Can I cancel at any time?
Yes. Our Investment Management Agreement contains no termination date. Either party may cancel the contract at any time with 30 days' written notice. If you terminate, fees are prorated for the remaining billing period and payable immediately. There are no exit penalties or lock-up periods.
How do I get started?
The first step is a conversation. Contact us at info@grammcap.com or call 804-301-4126 to schedule an introductory call. We'll learn about your financial position, goals, risk tolerance, and time horizon. Then we'll explain our approach and determine together if we're a good fit. There is no cost or obligation for this initial meeting.
How can I verify your registration?
You can verify our registration through the SEC's Investment Adviser Public Disclosure (IAPD) website at adviserinfo.sec.gov, or through the securities regulators in Florida and Virginia. Our CRD number is #324428. Our Form ADV, which discloses our business practices, fees, and potential conflicts of interest, is available on our website and through the IAPD system.
About the Company
Why is the company called "Grammatical Capital"?
The short answer is that the name is an homage to Jeremy Campbell's Grammatical Man, a delightful and powerful book on information theory. Many of the ideas in the book had a profound impact on our thinking (e.g., "The information stored in a law or rule is vastly greater than the information needed to specify a single event," "Redundancy makes complexity possible," and "Change is the essence of information"), none more so than his discussion on grammar. Campbell's framing of grammar as an antichance device applied at the message source that still allows for novelty struck us as particularly relevant to markets and heavily influenced the construction of our various technical indicators and signals.
The long answer is best discussed in person, over coffee or a cocktail.
What does the DNA symbol in your logo represent?
Again, the short answer is that it is inspired by the discussion of DNA as information in Jeremy Campbell's Grammatical Man. In particular, the discussion of two types of redundancy (context-free and context-sensitive) and their differing impacts on entropy was a revelation to us. Further, prices have two base pairs (Open-Close, Low-High) just like DNA (A-T, G-C), and the fact that the Company's initials represent one of the DNA base pairs was a happy coincidence.
What does it mean that you're a fiduciary?
As a fiduciary, we are legally obligated to act in your best interest at all times. Unlike brokers who may only need to recommend "suitable" investments, fiduciaries must put your interests ahead of our own. This is the highest standard of care in the financial industry, and it's a legal requirement - not just a promise.
What does "fee-only" mean?
Fee-only means our only compensation comes from the advisory fee our clients pay us. We earn no commissions, accept no referral compensation, and receive no payments from product sponsors or broker-dealers. This eliminates the conflicts of interest that can arise when an advisor earns money from recommending specific products. You can be confident that every recommendation is made solely because we believe it's in your interest.
Where are you located and who do you serve?
Our office is at 151 N. Virginia Ave., Winter Park, FL 32789. We serve individuals, high-net-worth individuals, pension funds, endowments, and corporations in Florida and Virginia. We work with clients both in person and virtually.