In the 80's the principles of Xpotential Advisors graduated with BS degrees in Electrical Engineering and Computer Science. They went on to become engineers involved in designing integrated circuits for electronic products.
They progressed to customer facing roles in the Electronic Design Automation industry, first as Applications Engineers and then as Account Executives. Here they assisted fortune 1000 companies in their successful development of complex electronic systems including Computer , Wireless, Networking, Mil-Aero and Consumer Product systems.
Around the year 2000, they realized they could better serve their customers by helping solve their biggest problem, the acquisition of great human capital. So in 1999, they founded Xpotential Search, an executive search company serving many of the same company's they had worked with earlier as well as numerous additional Hi-Tech firms. Over the next two decades they assisted hundreds of professionals from software developers and electrical design engineers to C suite executives in Sales, Marketing and Engineering achieve the next level of their career. They serve clients both large and small from venture capital funded start-ups to large publicly traded corporations.
As private business owners, they came to realize that they needed an effective personal investment plan and philosophy. If they could achieve a return approaching 10% annually, then it would not be too long before their investment returns would outpace their employment compensation. They studied the principles of many of the greatest investment minds to arrive upon a strategy to achieve their goal.
Several truths became evident:
- Fees and commissions would eat away at their returns
- Most investment professionals were brokers, not well aligned with their best interests, rather wanting to sell products for commission
- Diversification and asset allocation were paramount to success
- Asset allocation alone was not sufficient, as even diversified portfolios suffer significant draw-downs during recessionary markets
They developed a strategy they refer to as "Reactive Asset Allocation" where they monitor and then react to the macro-economic conditions that often precede bear markets in an attempt to mitigate risk and minimize the draw-down associated with bear markets.
In 2009, friends and family began to notice their accomplishments through the recession of 2007 and asked for assistance in managing their own portfolios. So in 2010, they registered with the SEC as an Investment Advisory firm. Since then, they have been assisting high tech executives, private business owners, and retirees in the same manner as they manage their own assets. In 2014, Dan earned the prestigious Chartered Financial Analyst (CFA) designation, widely known as the most respected and recognized investment management designation in the world.
Today the firm adheres to the CFA Code of Ethics and Standards of Professional Conduct and is a fee-only firm. They sell no products and earn no commission. They are among a small minority of advisors (<5%) that are fee only, fiduciaries "obligated" to put their clients interests ahead of their own at all times.
Our background as high tech professionals, career advisors and small business owners provide us with a unique perspective to advise our clients who are executives, engineers, small business owners and retiree's. Their needs are unique from advanced compensation handling like RSU's, stock options and employment contracts to small business continuity and cash flow issues to wrestling with the withdrawal phase of their lives.
We are proud to be committed to helping improve the lives of our clients through financial intelligence, investment strategies and career advisement to satisfy their unique individual circumstances and goals.