As a business owner, it’s easy to get distracted by issues that aren’t directly related to growing your business. The key is identifying what actions require your full attention, and to delegate everything else to your staff, or to a partner with dedicated expertise in that activity. Portfolio management is a great example of this – you add value to your clients through investment research and portfolio creation. However, the associated rebalancing and trade execution functions requIre a level of accuracy and time commitment, that frankly, you could be spending building your relationships and your business.


that only approximately 27% of equity trades are transacted on the NYSE and NASDAQ, with the balance split between other Multilateral Trading Facilities (MTF’s) and dark pools?


This is how institutional money managers operate – the fund manager devotes his time to research and model building and delegates the orders to a dedicated trader to work the orders on the ‘Street’ to achieve best execution. Unfortunately, many small to mid-sized RIAs have historically seen trading as an administrative function, instead of viewing it as part of the investment management process. At Sowell Management, we believe that the easiest way for investment managers to improve returns is by minimizing trade costs. Here’s how we strive to do that.

The first method is by potentially reducing client transaction fees. SMS is constantly working with our custodians and brokers to negotiate better rates on behalf of our partners. As our trading flows grow, we are in a progressively stronger position to negotiate reduced fees for our clients.

The second way is by improving execution – investment banks have dedicated entire floors to the trading function and have collectively spent billions of dollars on trading infrastructure. If we can help improve your execution by just 1 basis point a day, over 250 trading days, your model performance could be improved by 250 bps – without a single tweak to your models.

The bottom line: We have a dedicated trading team, watching the markets throughout the trading day, to help ensure you meet your best execution commitments.

For more information about our Managed Trading Services, contact:
Matt Estes, VP Business Development
501.232.8454 or [email protected]