What is a Spoke Fund?
Arquitos Capital Management manages the Arquitos Value portfolio as a Spoke Fund®. A Spoke Fund® is a group of separate investor accounts linked to a portfolio containing a substantial investment by the fund manager. Investors own the underlying securities, unlike in a mutual fund, providing tax advantages for the investor.
Additionally, investors have online access 24/7 to view the fund’s holdings and statements. Spoke Funds® have a more focused portfolio as well. You won’t find a Spoke Fund® holding 140 stocks. Most importantly, Spoke Fund® portfolio managers make a substantial investment in their own funds, ensuring their interests are aligned with investors. Less than half of mutual fund managers can say that.
The difference can best be describes by the pictures below:
Low costs. The Arquitos Value folio has low turnover, low cost commissions, and a tax-friendly structure. Plus, there are no loads and no 12b-1 fees (a hidden fee mutual funds charge in order to pay their salespeople).
Transparency. You’ll have online access to view your holdings, print out statements, and deposit and withdraw money.
Trust. We have a fiduciary duty to put your interests first. Our incentive is to make you the most money with the least amount of risk. And, we invest our money right beside yours.
A long-term perspective. That doesn’t mean we never sell. It does mean we’re willing to hold onto a stock until it reaches its full value. If it takes a week, great! We’ll sell then. If it takes three years, that will work too, and we’ll still make a good return on it. Wall Street focuses on the next quarter. Our advantage is to focus on the next three years.