Johnson Capital Advisory, LLC

Johnson Capital Advisory provides discretionary sub-advisory portfolio management primarily to other registered investment advisers and to pooled or institutional client assets, managing roughly $58.8 million in discretionary AUM. The firm offers advice across equities, mutual funds, ETFs, fixed income, municipal securities and REITs and does not participate in wrap fee programs.

As a sub-adviser, Johnson Capital manages allocated assets in accordance with objectives and suitability determinations made by the primary adviser and operates under written sub-advisory agreements. The firm employs both technical and fundamental analysis and uses long- and short-term trading strategies; it may also recommend or trade leveraged ETFs and use margin in limited, specified circumstances.

What distinguishes the firm from many peers is its explicit focus on serving other registered investment advisers — a relatively uncommon business model for investment managers — and the documented practice of referring high-net-worth clients to other advisers for which it also serves as sub-advisor. The brochure discloses that these referral and compensation arrangements create a potential conflict of interest, and the firm does not accept performance-based fees.