Firm Brochure (Part 2A of Form ADV) - theinsidersfund.com · Firm Brochure (Part 2A of Form ADV)...
Transcript of Firm Brochure (Part 2A of Form ADV) - theinsidersfund.com · Firm Brochure (Part 2A of Form ADV)...
FirmBrochure(Part2AofFormADV)
AlphaWealthFunds,
LLC
1887GoldDustLane
Suite203A
ParkCity,UT84060
Telephone:435-658-1934
Fax:206-984-4109
Email:
HarveySax
ChaseThomas
Website:www.alphawealthfunds.com
Thisbrochureprovidesyouwithinformationaboutthequalifications,businesspracticesandnature of advisory services of ALPHA WEALTH FUNDS., LLC, all of which should beconsidered before becoming an advisory client of our firm. Please contact Harvey Sax,ManagingMember,ifyouhaveanyquestionsaboutthisnarrativebrochure.
The information in thisbrochurehasnotbeenapprovedorverifiedby theUnitedStatesSecuritiesandExchangeCommission(“SEC”),orbyanystatesecuritiesauthority.
WearelicensedwiththeUtahDivisionofSecuritiesasaninvestmentadviser.Nonetheless,licensingwithanystateor federalregulatorydivisiondoesnot implyany levelofskillortraining.AdditionalinformationaboutourfirmisavailableontheInvestmentAdviserPublicDisclosure website at www.adviserinfo.sec.gov. You can search this site by a uniqueidentifyingnumberknownasaCRDnumber.Ourfirm’sCRDnumberis150231.
February2020
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Item2:MaterialChanges
ThisPart 2Aof ourFormADV (“FirmBrochure”)datedFebruary2020 serves asAlphaWealth Funds, LLC’s annual update amendment disclosure document for our current,prospective and future clients, and has been prepared in accordancewith requirementsspecifiedby theSEC.This sectionof theBrochurewill reflect theupdateof anymaterialchangesthatoccurredsincethepreviousdeliveryofourFirm’sbrochure.
SummaryofMaterialChangesDuringthe2017calendaryear,ourFirmchangedthenameoftheadvisoryfirmfromHSAX&CO.,LLC,toALPHAWEALTHFUNDS,LLCinJuneof2017.WealsochangedthenameofthehedgefundwemanagefromSAXANGLEPARTNERS,LPtoTHEINSIDERSFUND,LP.Therewasnochangeinstrategyormaterialchangeinbusinessin2017.InMarchof2018,ChaseThomaspurchased40%ofthefirm.HarveySaxownstheremaining60%ofthefirm.AlphaWealthwasconvertedtoatwo-memberLLCfromasolememberLLC.ChaseThomasaddsabout$14millioninAUMamongst140clients.Mr.ThomasisaCertifiedFinancialPlanner.FullBrochureAvailable
Inthepast,wehaveofferedordeliveredinformationaboutourqualificationsandbusinesspracticestoclientsonnolessthananannualbasis.Wewillprovideyouwithanewversionof theBrochureasnecessarybasedonchangesornew information,atany time,withoutcharge.
WheneveryouwouldliketoreceiveacompletecopyofourFirmBrochure,pleasecontactusby telephone at 435-658-1934 or by email at: hsax@alphawealthfunds [email protected]
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Item3: TableofContents
Item2: MaterialChanges............................................................................................................................i
Item3: TableofContents..........................................................................................................................ii
Item4: AdvisoryBusiness.........................................................................................................................1Item5: FeesandCompensation.............................................................................................................3
Item6: Performance-BasedFeesandSide-by-SideManagement...........................................6Item7: TypesofClients..............................................................................................................................7
Item8: MethodsofAnalysis,InvestmentStrategiesandRiskofLoss...................................7Item9: DisciplinaryInformation.........................................................................................................12Item10: OtherFinancialIndustryActivitiesandAffiliations....................................................12
Item11: CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading.........................................................................................................................13
Item12: BrokeragePractices...................................................................................................................14Item13: ReviewofAccounts....................................................................................................................17
Item14: ClientReferralsandOtherCompensation.......................................................................18Item15: Custody............................................................................................................................................18
Item16: InvestmentDiscretion..............................................................................................................19Item17: VotingClientSecurities............................................................................................................20
Item18: FinancialInformation...............................................................................................................20
Item19: RequirementsforState-RegisteredAdvisers.................................................................21
PrivacyPolicy...........................................................................................................................................................22BrochureSupplement(Part2BofFormADV): HarveySax...............................................................23
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Item4: AdvisoryBusiness
A. FirmDescriptionALPHAWEALTHFUNDS.,LLC(“ALPHAWEALTHFUNDS”orthe“Firm”)isaninvestmentmanagementfirmthatislicensedwiththeUtahDivisionofSecuritiesasaninvestmentadviser.ALPHAWEALTHFUNDSisalimitedliabilitycompanythatwasformedinUtahin2009.AlphaWealthFundscurrentbusinessactivitiesconsistofprovidinginvestmentadvisoryservicesutilizingitsproprietarytradingstrategytoapooledinvestmentvehiclestructured as a Delaware limited Fund. ALPHA WEALTH FUNDS also providesdiscretionary and non-discretionary investment management services to individualclientsandinstitutionsthroughaccountsmanagedseparately.PrincipalOwner:HarveySaxisaManagerandowns60%oftheFirm.Mr.SaxalsoservesastheFirm’sInvestmentAdviserRepresentative(IAR).ChaseThomasisamanagerandowns40%oftheFirm.ChaseThomasisalsoanInvestmentAdviserRepresentative(IAR)aswellasaCertifiedFinancialPlanner.
B. TypesofAdvisoryServicesAdvisoryServicesProvidedtotheFunds
ALPHAWEALTH FUNDS provides investment advice to THE INSIDERS FUND, L.P., aDelawareLimitedPartnership(the“Fund”)andTheVolatilityAdvantageFund,aUtahLimitedPartnership,whichinvestsitsassetsinsecurities.ALPHAWEALTHFUNDSalsoactastheGeneralPartnertotheFunds,andasGeneralPartnerissolelyresponsibleforthemanagementoftheFund.InvestorsintheFundarelimitedpartners(the“LimitedPartners”).
ALPHAWEALTHFUNDSprovidesinvestmentadvisoryservicestotheFundsbasedontheinvestmentobjectivesoftheFunds.THEINSIDERSFUND,LPTHEINSIDERSFUNDisalong-shortequityfund.Itinvestsincompaniesatornearpricesthatmanagementhasbeenwillingtoinvestsignificantamountsoftheirownmoneyin.Afterall,whoknowsabusinessbetterthanthepeoplerunningit?TheSECmandatesthatofficers,directorsand10%shareholdersfileaForm4detailingbuyingandsellingintheircompany’sstockwithin48hours.TheSECmakesthisinfopubicimmediatelyuponreceivingit.Thisisascloseto“insiderinformation”thatanordinaryinvestorislikelytosee.TheFundprovidescompleteliquiditywithnolock-ups.TheFundonlyinvestintransparentandliquidLevel1securities.Thisstrategyinvolvestakinglongpositionsinstocksthatareexpectedtoincreaseinvalueandshortpositionsinstocksthatareexpectedtodecreaseinvalue.TheInsidersFundwasranked#4thbestperforminglongshortequityfundfor2019byBarclayHedege,aleadingindependentalternativedatabasevendor.THEVOLATILITYADVANTAGEFUNDinvestsinlowcostindexfunds,stocks,andoptionsutilizingatimedecaystrategy.TheFundaddstimevaluetoitsportfoliothroughoptionscontractwritingandvolatilityhedges.TheFundprovidescompleteliquiditywithnolock-ups.TheFundonlyinvestintransparentandliquidLevel1securities.This
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strategyinvolvestakinglongpositionsinstocksthatareexpectedtoincreaseinvalueandshortpositionsinstocksthatareexpectedtodecreaseinvalue.THETAInvestmentsismanagedbyathirdparty,RussellKellites..IthasbeenrankedhighlybyBarclayHedgeFund,anindependentthirdpartydatavendor.ThetasellsputsandcallsontheS&P500andhedgesbywritingspreadsonthesederivatives.Optionbuyerstypicallyhavenegativereturnexpectations.ThetaFundssellsoptionsrealizingapositiveexpectedreturn.AlphaWealthactsassubadvisortoThetaandprovidesmarketingservices.TherearenoadditionalsaleschargesincurredforthecustomerasThetahasasellingagreementwithAlphaWealthFunds.ThetaInvestmentswasranked#9bestperformingfundintheOptionscategoryin2019byBarclayHedge,aleadingindependentalternativedatabasevendor.TheseFundsareofferedtoqualifiedinvestorsandaninvestmentmaybemadeonlyafterreceiptandreviewoftheFund’sConfidentialPrivatePlacementMemorandum(the“Memorandum”)andexecutionofcertainagreements.TheMemorandumcontainsimportantinformationconcerningriskfactorsandothermaterialaspectsoftheFundanditmustbereadcarefullybeforemakinganinvestmentdecision.Foracompletedescriptionofthestrategiesandrisksinvolved,seetheofferingmemorandums.Theinformationinthisdocumentisqualifiedinitsentiretyby,andshouldbereadinconjunctionwiththeProspectusAdvisoryServiceProvidedtoAccountsManagedSeparately
ALPHAWEALTHFUNDSoffersdiscretionaryinvestmentmanagementservicesandnon-discretionary management services to individuals based on the specific needs andobjectivesofsuchpersons.Subject toanywrittenguidelinesorrestrictionswhichtheclientmayprovide,ALPHAWEALTHFUNDSwillprovidediscretionaryportfoliomanagementserviceswherebytheFirm shall be granted full discretion and authority to manage the client’s account.Accordingly,ALPHAWEALTHFUNDSisauthorizedtoperformvariousfunctions,attheclient’s expense,without further approval from the client. Such functions include thedeterminationofsecuritiestobepurchasedorsold.Alternatively, ALPHA WEALTH FUNDS provides non-discretionary portfoliomanagementservices,wherebythefirmwillmakespecificinvestmentrecommendationstoaclienttailoredtomeettheneedsandinvestmentobjectivesofthatspecificclient;butshall not initiate any orders topurchase or sell any securities (or specific securities)without the client’s approval. ALPHA WEALTH FUNDS provides non-discretionaryportfoliomanagementservicestoindividualsbasedonthespecificneedsandobjectivesofsuchpersons.
Onceaclient’sportfolioisconstructed,ALPHAWEALTHFUNDSwillprovidecontinuoussupervision and re-balancing of the portfolio as changes inmarket conditions and asclientcircumstancesmayrequire.
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AlphaWealthoffersFeeBasedFinancialPlanning.Theseservicesaredesignedbasedonhighlycustomizedofferingscreatedfromextensiveclientinterviews.TheinvestmentchoicesprovidedasaresultoftheinterviewprocessmayormaynotutilizeouradvisoryserviceandspecializedofferingssuchashedgefundsandSMAaccounts.Itmayentailrecommendationsofthirdpartyserviceswehavenoaffiliationorreceivecompensationfrom.Itishighlyadvisedfortheclienttodofurtherduediligenceifthirdpartyservicesareengagedasthatisbeyondthescopeofthefinancialplan.Theclientshouldcarefullyreadthefinancialplanningagreementasitspecifiesthescopeofthefinancialplaninitsentirety.FinancialplanningservicesadheretoTheCERTIFIEDFINANCIALPLANNER™,CFP®methodology
TheCFP®certificationisavoluntarycertification;nofederalorstatelaworregulationrequiresfinancialplannerstoholdCFP®certification.ItisrecognizedintheUnitedStatesandanumberof other countries for its (1) high standard of professional education; (2) stringent code ofconduct and standards of practice; and (3) ethical requirements that govern professionalengagementswithclients
TailoredRelationships:TheFundALPHAWEALTHFUNDSprovidesinvestmentadvisoryservicestotheFundbasedontheinvestmentobjectivesoftheFund.ALPHAWEALTHFUNDSdoesnotprovidetailoredinvestmentadvicetotheLimitedPartnersintheFunds.
LimitedPartnershipInterestsintheFund(“Interests”)arebeingofferedforinvestmentbyuptoonehundred(100)personswhoare“accreditedinvestors”asdefinedinRule501(a)ofRegulationDunder the federalSecuritiesActof1933(“SecuritiesAct”)andwho are “qualified clients” as defined in Rule 205-3 under the federal InvestmentAdvisers Act of 1940 (“Advisers Act”). All investors in the Fund will meet therequirementsofRule164-2-1oftheUtahAdministrativeCode.TheInterestsarebeingofferedandsoldunderRegulationD,Rule506oftheSecuritiesActof1933andincompliancewithSection61-1-7oftheUtahUniformSecuritiesAct.TheInterestswillnotberegisteredundertheSecuritiesActorthesecuritieslawsofanystate.AccountsManagedSeparatelyALPHAWEALTHFUNDSprovidesdiscretionaryandnon-discretionaryportfoliomanagementservicestoindividualswheretheinvestmentadviceprovidediscustomtailoredtomeettheneedsandinvestmentobjectivesofthespecificclient.TheassetmanagementservicesandrecommendationsofferedbyALPHAWEALTHFUNDSarebasedontheindividualneedsofitsclientsandthesuitabilityofproductsandservices.ALPHAWEALTHFUNDSmakesathoroughassessmentofitsclient’sgoals,objectives,investmenthorizon,andrisktolerance.
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ALPHAWEALTHFUNDSmanagesitsclients’accountsonanindividualbasis.Portfolioswithinthesameobjectivemay,atanygiventime,differastospecificsecuritiesandcashlevels.Furtherretractionsandguidelinesimposedbyclientsaffectthecompositionandperformanceoftheportfolios.Forthesereasons,performanceofportfolioswiththesameobjective may differ, and clients should not expect that the performance of theirportfoliosbeidenticalwiththeALPHAWEALTHFUNDSaverageforthatobjective.
After an initial meeting, each new client’s investment objective is determined, and aportfolio is constructed in a manner considered to be consistent with the client’sobjective. Prior to engaging ALPHA WEALTH FUNDS to provide any of theaforementioned investment advisory services, ALPHA WEALTH FUNDS requires awrittenInvestmentAdvisoryAgreement(“IAAgreement”)signedbytheclientpriortotheengagementofservices.TheIAAgreementoutlinestheservicesrenderedbyALPHAWEALTHFUNDSandthefeesthatclientswillbecharged.Clientscanindicatewhetherornot to give ALPHAWEALTH FUNDS written authority to deduct fees from custodialaccounts.
C. WrapFeeProgramsWrap Fee Programs are arrangements between broker-dealers, investment advisers,banksandotherfinancialinstitutionsandaffiliatedandunaffiliatedinvestmentadvisersthrough which the clients of such firms receive discretionary investment advisory,execution, clearing and custodial services in a “bundled” form. In exchange for these“bundled” services, the clients pay an all-inclusive (or “wrap”) fee determined as apercentage of the assets held in thewrap account. ALPHAWEALTHFUNDSdoes notparticipateinandisnotasponsorofwrapfeeprograms.
D. AssetsunderManagementALPHA WEALTH FUNDS manages approximately $24,000,000 in client assets on adiscretionarybasis.ThisAssetunderManagementfigureisbasedoncalculationsasofDecember2019.
Item5: FeesandCompensation
A. DescriptionandBilling
TheFundsALPHA WEALTH FUNDS earns its fees and compensation by providing advice andinvestmentmanagementservicestotheFund.ThecompensationwillbeintheformofManagement fees (the “Management Fee”) and Performance-based fees (the“PerformanceFee”),andassessedandbilledasfollows:ManagementFees:TheManagementFeeispaidmonthlyinadvancetoALPHAWEALTHFUNDS.TheManagementFeeisequalto1/12of1%-2.0%(1.00%-2.0%perannum)ofthebeginningCapitalAccountbalanceofeachLimitedPartnerforsuchmonth.Aprorataportion of the Management Fee will be paid out of any initial or additional capitalcontributionstotheFundonanydatethatdoesnotfallonthefirstdayofamonth,based
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onthenumberofdaysremaininginsuchpartialmonth.NoportionoftheManagementFeewillberefundedinconnectionwithanywithdrawalsfromaLimitedPartner’sCapitalAccountduringamonth.ThesefeesaredeductedfromeachLimitedPartner’saccount.Performance-BasedFees:ThePerformanceFeeshallbemadetoALPHAWEALTHFUNDSinanamountequaltotwentypercent(20%)ofthenetcapitalappreciationallocatedtoeach Limited Partner during each calendar year; provided however, that suchPerformanceFeeshallbesubjecttoalosscarry-forwardprovision,alsoknownasa“HighWaterMark,”so thatnoPerformanceFeewillbededucted fromanyPartner’scapitalaccountuntilprior lossesallocated tosuchPartnerhavebeenrecouped.PerformanceFeesmaybemadeatanytime,inthesolediscretionofALPHAWEALTHFUNDS,foraPartnerwhomakesapartialorcompletewithdrawal.ThesefeesaredeductedfromeachLimitedPartner’saccount.ThePerformanceFeewillonlybechargedto“qualifiedclients”asthattermisdefinedinRule205-3undertheInvestmentAdviserActof1940,orsimilarstatestatutes.AllinvestorsintheFundwillmeettherequirementsofRule164-2-1oftheUtahAdministrativeCode.
ALPHAWEALTHFUNDSmay,initssolediscretion,enterintoarrangementswithLimitedPartnersunderwhichthePerformanceFeeisloweredortheManagementFeeisreduced,waivedorcalculateddifferentlywithrespecttosuchLimitedPartners,including,withoutlimitation, Limited Partners that are members, affiliates or employees of ALPHAWEALTHFUNDS,membersoftheimmediatefamiliesofsuchpersonsandtrustsorotherentities for their benefit, or Limited Partners that make a substantial investment orotherwisearedeterminedbyALPHAWEALTHFUNDSinitssolediscretiontorepresentastrategicrelationship.Otherfeesandexpenses:TheFundshallpayforallordinaryoperatingandotherexpenses,including, but not limited to, investment-related expenses (such as brokeragecommissions,clearingandsettlementcharges,custodialfees,interestexpenses,expensesrelatingtoconsultants,brokersorotherprofessionalsoradvisorswhoprovideresearch,adviceorduediligenceserviceswithregardtoinvestments,appraisalfeesandexpensesandinvestmentbankingexpenses);researchcostsandexpenses(includingfeesfornews,quotation and similar information and pricing services); legal expenses (including,withoutlimitation,thecostsofon-goinglegaladviceandservices,blueskyfilingsandallcosts and expenses related to or incurred in connection with Alpha Wealth Funds’complianceobligationsunderapplicablefederaland/orstatesecuritiesandinvestmentadviser lawsarisingoutof its relationship to theFund, aswell as extraordinary legalexpenses); accounting fees and audit expenses; administrative fees; tax preparationexpenses and any applicable tax liabilities (including transfer taxes and withholdingtaxes); other governmental charges or fees payable by the Fund; director and officerand/orerrorsandomissionsliabilityinsurancepremiumsorfiduciaryliabilityinsurancepremiums for directors, officers and personnel of ALPHA WEALTH FUNDS; costs ofprintingandmailingreportsandnotices;andothersimilarexpensesrelatedtotheFund,asALPHAWEALTHFUNDSdeterminesinitssolediscretion.TotheextentthatexpensesbornebytheFundarepaidbyALPHAWEALTHFUNDS,theFundwillreimburseALPHA
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WEALTHFUNDSforsuchexpenses.TheremaybeadditionalfeesorchargesthatresultfromthemaintenanceofaLimitedPartner’sparticipationincluding,butnotlimitedto,feesassociatedwithpurchasingInterestsviaanIRAandQualifiedRetirementPlan.OtherfeesaregenerallydeductedfromthecapitalaccountofeachLimitedPartner.
AccountsManagedSeparately
ALPHAWEALTH FUNDS earns its fees and compensation by providing personalizeddiscretionary and non-discretionary asset management services. ALPHA WEALTHFUNDSwillassessamanagementfee(the“ManagementFee”)toprovidediscretionaryandnon-discretionaryportfoliomanagementservices.TheManagementFeeisanannualfeebasedonapercentageoftheclient’sassetsundermanagement.Clientsareassessedanannualassetmanagementfeeofupto1.5%-2%ofthevalueofaclient’sassetsheldinthatclient’saccount.TheManagementFeewill be calculated and chargedon adaily basis basedupon themarketvalueofaclient’sassetsattheendoftheday,dependingontheamountofassetsundermanagementorrelatedaccounts.
AllfeeswillbedeductedbyALPHAWEALTHFUNDSdirectlyfromtheaccount,andwillbe paid to ALPHAWEALTH FUNDS from the amount on deposit in the account. NominimumaccountvalueisnecessaryinorderforALPHAWEALTHFUNDStobeentitledtothefeesdescribedherein.
Theremaybeadditionalfeesorchargesthatresultfromthemaintenanceofyouraccount.Thesearefeesthatareimposedbythirdparties inconnectionwithinvestmentsmadethroughtheclient’saccount,includingbutnotlimited to, no-loadmutual fund12(b)-1distributionfees,certaindeferredsaleschargesonpreviouslypurchasedmutualfunds,andIRAandQualifiedRetirementPlanfees.
ALPHAWEALTH FUNDS reserves the right to discount fees based on the needs andcircumstancesofclients.Alloftheabove-referencedfeesarenegotiable.
FinancialPlanning
Allinvestinginvolvesrisk.AlphaWealthFundsprovidesfinancialplansinaccordancewith the Certified Financial Planner guidelines. Therefore, the actions proposed in acustomfinancialplaninherentlycontainsomerisk.Pastperformanceisnoguaranteeoffuture results, but we will always act as a fiduciary when we make these planrecommendations.WhenAlphaWealthrecommendsproprietaryproducts,wewillalsoendeavortooffer thirdpartyofferingswhenweareawareof themalthoughweofferlimitedassuranceastotheaccuracyoftheseofferingsbeyondtheirstatedresults.Weoftenconsultwithexternallegalandaccountingresourcesaspartofthisplanningservicebut we are neither accountants nor attorneys and can offer no assurance as to theaccuracyofthirdpartyadvice.Weuseourbestefforts,buttheclientshouldconsultwiththeirownlegalandaccountingexperts.Duediligenceonthirdpartyrecommendationsis typicallybeyondthescopeofa financialplan. Anysuchserviceswouldneed tobestatedspecificallysoinwriting
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Financialplanningservicesentailaone-timefeeofbetween$1500-$15,000basedonthecomplexityoftheplan,theassets involved,thenumberofaffectedparticipants,hoursentailed,andavarietyofother factors. Feesareaddressedup frontandagreedto inwritingsotherearenounexpectedcharges.Thefinancialplanisaninterpretative,livingbreathingdocumentandAlphaWealthFundswillmakeallreasonableeffortswithnolimittotimetoensureitmeetstheclient’sneedsandobjectives.Weofferasatisfactionguaranteeonourfinancialplanslimitedtotheextentthatwewillworkontheplanuntiltheclientissatisfied,regardlessoftimespent..Uponfinalapproval,AlphaWealthFundswillhelpimplementtheplaniftheclientrequestsso.OurobjectiveisthatthisplancouldbeimplementedbyAlphaWealthFundsaswellasanindependentthirdparty.
Insurance
AlphaWealthFundsalsooffersinsuranceproductssuchaslifeinsuranceandannuitiesthoughitslicensedinsuranceagentsfromavarietyofinsurancecarriers.
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RefundandTerminationPolicyTheFund:OurManagementFeesareassessedinadvanceandbilledatthebeginningofeachquarter.OurPerformanceFeeisassessedannuallyinarrears.IntheeventofterminationofaLimitedPartner’sinterestintheFund,noportionoftheManagementFeewillberefundedinconnectionwithanywithdrawalsfromaLimitedPartner’sCapitalAccountduringamonth,andPerformanceFeefeeswillbeassessedinaccordancewiththeFund’sLimitedFundAgreement.ClientmaywithdrawfromthefundforanyreasonwithwrittennoticebysubmittingAppendixAFormofRequestforWithdrawal.ThisRequestmustbemadeatleast30dayspriortothecloseofbusinessonthelastdayofacalendarmonth.
Accounts Managed Separately: Client may terminate the Agreement for any reasonwhatsoeverwithoutpenalty(fullrefund)within30daysofsignature.Afterthefirst30days,the client or ALPHAWEALTH FUNDSmay cancel the Agreement at any time by providingwrittennoticetotheother.Afterthefirst30(thirty)days,serviceswillcontinueuntileitherpartyterminatestheAgreement.Theclient,orAdviser,maycancelthisagreementatanytimebyprovidingwrittennoticetotheother.Feespaidinadvancewillbeproratedtothedateofterminationspecifiedinthenoticeofterminationandanyunearnedportionthereofwillberefundedtoclient.
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Item6: Performance-BasedFeesandSide-by-Side Management
A. Performance-BasedFeesPerformanceFeesarebasedonashareofthecapitalgainsorcapitalappreciationoftheassetsofaclient.FeesbasedonperformancemeansALPHAWEALTHFUNDSparticipatesdirectlyintheaccount’sresults.
AsnotedinItem5,ALPHAWEALTHFUNDSassessesaPerformanceFeefortheFund.PleaserefertoItem5fordetailsregardingPerformanceFees.ThePerformanceFeewillonlybechargedto“qualifiedclients”asthattermisdefinedinRule 205-3 under the Investment Adviser Act of 1940, or similar state statutes. Allinvestors in the Fund will meet the requirements of Rule 164-2-1 of the UtahAdministrativeCode.The Performance Fee may, indirectly, create an incentive for the Firm to makeinvestmentsonbehalfoftheFundthatareriskierormorespeculativethanwouldbethecase in the absence of such allocation. To mitigate any conflicts of interests, theinvestmentswillberevieweddailybytheComplianceOfficertoensurethatinvestmentsareinlinewithfundobjectivesandinvestmentsdonotincurextraordinaryamountofrisk.
B. Side-by-SideManagement“Side-by-SideManagement” refers to a situation inwhich the sameAdvisermanagesaccounts that are billed based only on a percentage of assets under management(“ManagementFee”)andat thesametimemanagesotheraccounts forwhich feesareassessedonbothmanagementandperformancefees.ALPHAWEALTHFUNDSmanagesfee-basedaccounts side-by-sidewithaccountsnot subject toperformance-based fees.Becauseofthis,ALPHAWEALTHFUNDSfacescertainconflictsofinterest,includingtheincentivetoallocatepotentiallymorefavorableinvestmentopportunitiestotheaccountssubjecttothePerformanceFee.SuchaconflictisthatALPHAWEALTHFUNDSmayshareinthepotentiallysuperiorperformanceofsuchinvestmentopportunities.ALPHA WEALTH FUNDS conducts side-by-side management of pooled investmentvehicles and accountsmanaged separately. These dissimilar investment products aredesignedforspecifictypesofclientsanddiversemethodsofmanagementarerequired.AlthoughmanyofAlphaWealthFunds’bestideasaresharedbetweenbothseparatelymanagedaccountsand theFund, itmaynotbe feasible toreplicate theactive tradingstrategydeployedbytheFundinseparatelymanagedaccounts.Foranumberofreasons,including compensation variations and allocation of trades, managing side-by-sideproductsmaypresentALPHAWEALTHFUNDSwithpotentialconflictsofinterest.Theconflicts may include the incentive to give preferentiality to performance-based feetransactionsoverotheraccountsor
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intentionally allocating trades to increase value of assets thereby generating higheradvisorycompensation.Tomitigatethisconflictofinterest,ALPHAWEALTHFUNDShasdevelopedpoliciesandproceduresprohibitingallocationoftradesbasedonfavorableorunfavorablemarket fluctuations. AlphaWealth Funds’ ComplianceOfficerwill reviewtransactionsperiodicallytopreventanddetectpreferentialtradeallocation.
Item7: TypesofClients
A. TypesofClientsALPHA WEALTH FUNDS generally provides discretionary and non-discretionaryinvestmentadvisoryservicestoIndividuals,Institutions,andtheFund.
ALPHAWEALTHFUNDSprovidesinvestmentadvicetotheFund,whichinvestsitsassetsinsecurities.InvestorsintheFundmustbeboth“accreditedinvestors”asdefinedinRule501(a)ofRegulationDundertheSecuritiesActof1933and“qualifiedclients”asdefinedin Rule 205-3 under the Investment Advisers Act of 1940. The Interests will not beregisteredundertheSecuritiesActorthesecuritieslawsofanystate.AllinvestorsintheFundwillmeettherequirementsofRule164-2-1oftheUtahAdministrativeCode.
B. ConditionsforAccountManagementTheFund:ALPHAWEALTHFUNDSgenerallyrequiresLimitedPartnersintheFundtocommit$250,000asaminimuminitialinvestment.ALPHAWEALTHFUNDSreservestherighttoreducetheminimuminitialcapitalcontributionandtoacceptsubscriptionsforlesseramounts.
AccountsManagedSeparately:ALPHAWEALTHFUNDSgenerallyrequiresaminimuminitial investmentof$500,000foraseparatelymanagedaccount.Theminimuminitialinvestmentisnegotiable.
Item8: MethodsofAnalysis,InvestmentStrategiesandRiskofLoss
A. MethodsofAnalysisALPHAWEALTHFUNDSemploysboth fundamentalanalysisand technicalanalysisasourprimarymethodsforanalyzingsecuritiestoachievetheinvestmentobjectivesandgoalsofourclients.
Fundamentalanalysisstartswiththepreceptthatnooneknowsabusinessaswellasthepeoplerunningit.Fundamentalanalysisconsistsofanalyzingfinancialstatementsofcompanies, calculating financial ratios, and reviewing cyclical trends of industries inconjunctionwithothermonetarypolicyindicatorstoassesstheoverallperformanceandprofitabilityofcompanies.Technicalanalysisisamethodofevaluatingsecuritiesbyrelyingontheassumptionthatmarketdata,suchaschartsofprice,volumeandopeninterestcanhelppredictfuture(usuallyshort-term)markettrends.Technicalanalysisassumesthatmarketpsychologyinfluencestradinginawaythatenablespredictingwhenastockwillriseorfall.The
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technicalindicatorsthattheFundmayconsiderinclude,butarenotlimitedto
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price, volume, momentum, relative strength, sector/group strength and moving averages.Technical analysis doesnot consider theunderlying financial conditionof a company.Thispresents a risk that a poorly-managed or financially unsound companymayunderperformregardless of market movement. The technical analysis method of evaluating securitiesanalyzes statistics generated bymarket activity, such aspastprices andvolume.Technicalanalysisaidsinthedecisionofwhentobuyorsell,howmuch,andatwhatprice.
ALPHAWEALTHFUNDSprefers,butisnotrestricted,totradesecuritiesorsectorsthathavesignificantinsiderpurchases/sales,buyingandsellingthesecuritiesatpricesandpointsintimedeterminedbyitsownproprietarytechnicalanalysis.
B. InvestmentStrategiesTHEFUNDSTHE INSIDERS FUND, LP THE INSIDERS FUND is a long-short equity fund. It invests incompaniesatornearpricesthatmanagementhasbeenwillingtoinvestsignificantamountsoftheirownmoneyin.Afterall,whoknowsabusinessbetterthanthepeoplerunningit?The SECmandates that officers, directors and 10% shareholders file a Form4 detailingbuyingandsellingintheircompany’sstockwithin48hours.TheSECmakesthisinfopubicimmediately upon receiving it. This is as close to “insider information” that an ordinaryinvestorislikelytosee.TheFundprovidescompleteliquiditywithnolock-ups.TheFundonlyinvestintransparentandliquidLevel1securities.Thisstrategyinvolvestakinglongpositionsinstocksthatareexpectedtoincreaseinvalueandshortpositionsinstocksthatareexpectedtodecreaseinvalue.THEVOLATILITYADVANTAGEFUNDinvestsinlowcostindexfunds,stocks,andoptionsutilizingatimedecaystrategy.TheFundaddstimevaluetoitsportfoliothroughoptionscontractwritingandvolatilityhedges.TheFundprovidescompleteliquiditywithnolock-ups.TheFundonlyinvestintransparentandliquidLevel1securities.Thisstrategyinvolvestakinglongpositionsinstocksthatareexpectedtoincreaseinvalueandshortpositionsinstocksthatareexpectedtodecreaseinvalue.THETAFUNDsismanagedbyathirdparty,RussellKellites.IthasbeenrankedhighlybyBarclayHedgeFund,anindependentthirdpartydatavendor.ThetasellsputsandcallsontheS&P500andhedgesbywritingspreadsonthesederivatives.Optionbuyerstypicallyhavenegativereturnexpectations.ThetaFundssellsoptionsrealizingapositiveexpectedreturn.AlphaWealthactsassubadvisortoThetaandprovidesmarketingservices.TherearenoadditionalsaleschargesincurredforthecustomerasThetahasasellingagreementwithAlphaWealthFunds.TheseFundsareofferedtoaccreditedinvestorsandaninvestmentmaybemadeonlyafterreceipt and review of the Fund’s Confidential Private Placement Memorandum (the“Memorandum”) and execution of certain agreements. The Memorandum containsimportantinformationconcerningriskfactorsandothermaterialaspectsoftheFundanditmustbereadcarefullybeforemakinganinvestmentdecision.Foracompletedescriptionof
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thestrategiesandrisksinvolved,seetheofferingmemorandums.Theinformationinthisdocument is qualified in its entirety by, and should be read in conjunction with theprospectus.
ALPHA WEALTH FUNDS is not limited by the above discussion of the investmentprogram.ALPHAWEALTHFUNDShaswidelatitudetoinvestortradetheFund’sassets,topursueanyparticularstrategyortactic,ortochangetheemphasiswithoutobtainingtheapprovalof theLimitedPartners, althoughALPHAWEALTHFUNDSwillnotifyallLimitedPartnersbeforemakingamaterialchange,atwhichtimeallLimitedPartnerswillhave the opportunity to withdraw from the Fund without regard to any applicablewithdrawallimitationssetforthintheFundAgreement.
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ACCOUNTSMANAGEDSEPARATELYALPHAWEALTHFUNDSwillmanageseparateaccountsinamannerconsistentwiththeobjectives jointly identifiedwiththeaccountowner.TheFirmwillgatherandanalyzedata concerning theclient’sgoals, cash flowanddebts, investments, insurance, estateissues, tax situation, employee benefits, risk tolerance, time horizon and personalpreferences in addition to anyotherdata the clientwishes to include that is deemedpertinenttothefinancialplanningprocess.
Thisinformationisgatheredthroughin-depthpersonalinterviewsdesignedtoelicittheclient'scurrentfinancialstatus,familyobligations,futuregoalsandattitudestowardrisk.Relateddocumentssuppliedbytheclientarecarefullyreviewed.TheFirmthenhelpstheclientsetrealisticgoals,identifykeyfinancialissuesconcerningthosegoalsandpreparea list of recommendations and alternative strategies for achieving those goals. Eachstrategywillberecommendedinthecontextofotherstrategiestoachievetheoptimumoverallresults.
C. MaterialRisksofLossClientsneedtobeawarethatinvestinginsecuritiesinvolvesriskoflossthatclientsneedtobepreparedtobear.
Everymethod of analysis has its own inherent risks. To perform an accuratemarketanalysisALPHAWEALTHFUNDSmusthaveaccesstocurrent/newmarketinformation.ALPHA WEALTH FUNDS has no control over the dissemination rate of marketinformation;therefore,unbeknownsttoALPHAWEALTHFUNDS,certainanalysesmaybe compiledwith outdatedmarket information, severely limiting the value ofALPHAWEALTHFUNDS’analysis.Furthermore,anaccuratemarketanalysiscanonlyproduceaforecastofthedirectionofmarketvalues.Therecanbenoassurancesthataforecastedchange inmarket valuewillmaterialize into actionable and/or profitable investmentopportunities.Different types of investments involve varying degrees of risk, and it should not beassumed that future performance of any specific investment or investment strategy(includingtheinvestmentsand/orinvestmentstrategiesrecommendedorundertakenbyALPHAWEALTHFUNDSwillbeprofitableorequalanyspecificperformancelevel(s).ALPHA WEALTH FUNDS does not represent, warrant, or imply that the services ormethods of analysis employed by ALPHAWEALTH FUNDS can orwill predict futureresults,successfullyidentifymarkettopsorbottoms,orinsulateclientsfromlossesduetomarketcorrectionsordeclines.
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NotwithstandingthemethodofanalysisorinvestmentstrategythatourFirmemploys,theassetswithinaclient’sportfolioaresubjecttoriskofdevaluationorloss.Wewant
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ourclientstobeawarethattherearedifferenteventsthatcanaffectthevalueofyourassetsorportfolio, including, but not limited to, changes in financial status of companies, marketfluctuations,changesinexchangerates,tradingsuspensionsanddelays,economicreports,andnaturaldisasters.
Our investmentapproachconstantlykeeps the riskof loss inmind.Clients could faceinvestmentrisks,whichcould includebutarenot limited to the following investmentrisks:
• Interest-rate Risk: Fluctuations in interest rates may cause investment prices tofluctuate.Forexample,wheninterestratesrise,yieldsonexistingbondsbecomelessattractive,causingtheirmarketvaluestodecline.
• MarketRisk:Thepriceof a security, bond, ormutual fundmaydrop in reaction totangibleandintangibleeventsandconditions.Thistypeofriskiscausedbyexternalfactorsindependentofasecurity’sparticularunderlyingcircumstances.Forexample,political,economicandsocialconditionsmaytriggermarketevents.
• InflationRisk:Whenanytypeofinflationispresent,adollarwillbeworthlessinthefuturebecausepurchasingpoweriserodingattherateofinflation.
• Currency Risk: Overseas investments are subject to fluctuations in the value of thedollar against the currency of the investment’s originating country. This is alsoreferredtoasexchangeraterisk.
• BusinessRisk:These risksareassociatedwithaparticular industryoraparticularcompanywithinanindustry.Forexample,oil-drillingcompaniesdependonfindingoilandthenrefiningit,alengthyprocess,beforetheycangenerateaprofit.Theycarryahigherriskofprofitability thananelectriccompany,whichgenerates its incomefromasteadystreamofcustomerswhobuyelectricitynomatterwhattheeconomicenvironmentislike.
• Liquidity Risk: Liquidity is the ability to readily convert an investment into cash.Generally, assets aremore liquid ifmany traders are interested in a standardizedproduct.Forexample,TreasuryBillsarehighlyliquid,whilerealestatepropertiesarenot.
• FinancialRisk:Excessiveborrowing to financeabusiness’operations increases theriskofprofitability,becausethecompanymustmeetthetermsofitsobligationsingood times and bad. During periods of financial stress, the inability tomeet loanobligationsmayresultinbankruptcyand/oradecliningmarketvalue.
Whiletheriskinformationthatfollowsprovidesasynopsisoftheeventsthatmayaffectyourinvestments,thislistingisnotexhaustive.Wewantyoutounderstandthatthereareinherentrisksassociatedwithinvestinganddependingontheriskoccurrence;youmaysufferLOSSOFALLORPARTOFYOURPRINCIPALINVESTMENT.
Alternative investment products often engage in leveraging and other speculativeinvestmentpracticesthatmayincreasetheriskofinvestmentloss.Aninvestorcould
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loseallorasubstantialamountofhisorherinvestment.Notwithstandingthemethodofanalysisor investmentstrategyemployedbytheFirm, theassetswithin theFundaresubjecttoriskofdevaluationorloss.AninvestorshouldnotmakeaninvestmentintheFundwiththeexpectationofshelteringincomeorreceivingcashdistributions.
AninvestmentintheFundshouldformonlyaspartofacompleteinvestmentprogram,andaninvestormustbeabletobearthelossofitsentireinvestment.InvestorsareurgedtoconsultwiththeirpersonaladvisersbeforeinvestingintheFund.
ALPHAWEALTHFUNDSbelievesthatsubstantialreturnscanbeachievedbyinvestingintheFund;however, such investment involves ahighdegreeof risk.Because risks areinherentinalltheinvestmentsinwhichtheFundengages,noassurancescanbegiventhattheFund’sinvestmentobjectiveswillberealized.ALPHAWEALTHFUNDSurgesinvestorstoreviewcarefullytheriskfactorssetforthintheFund’sMemorandum.
AninvestorshouldnotmakeaninvestmentintheFundwiththeexpectationofshelteringincomeorreceivingcashdistributions.AninvestmentintheFundshouldformonlyaspartofacompleteinvestmentprogram,andaninvestormustbeabletobearthelossofitsentireinvestment.InvestorsareurgedtoconsultwiththeirpersonaladvisersbeforeinvestingintheFund.BecauserisksareinherentinalltheinvestmentsinwhichtheFundengages, no assurances can be given that the Fund’s investment objectives will berealized. The Fund’s Memorandum contains important information concerning riskfactorsandothermaterial aspectsof theFundandmustbe readcarefullybeforeanydecisionwhethertoinvestismade.
The Fund’s success depends on the General Partner’s strategies and the ability toimplement its investment strategy. Any factor that would make it more difficult toexecutemore timely trades, such as a significant lesseningof liquidity in aparticularmarket,may also be detrimental to profitability. No assurance can be given that theinvestmentstrategiestobeusedbytheFundwillbesuccessfulunderalloranymarketconditions.
D. RecommendationofSpecificTypesofSecuritiesTheFund:ALPHAWEALTHFUNDSspecializesinrecommendationsrelatedtotheFundwhich is designed for investorswho have the knowledge and experience in financialmatters to evaluate themerits and risks of such investments. Fund investmentsmayinclude,butarenotlimitedto,equitysecurities,debtandotherincomesecurities,high-yield securities, exchange traded funds, derivative instruments including optionstransactions,andemergingmarketssecurities.
AccountsManagedSeparately:Managedaccountinvestmentsmayinclude,butarenotlimited to,equitysecurities,debtandother incomesecurities,exchange traded funds,derivativeinstrumentsincludingoptionstransactions,andemergingmarketssecurities.
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Item9: DisciplinaryInformation
TheFirmisrequiredtodisclosewhethertherearelegalordisciplinaryeventsthatarematerialtoaclient’sorprospectiveclient’sevaluationofouradvisorybusinessortheintegrityofourmanagement.TheFirmanditsemployeeshavenotbeeninvolvedinlegalordisciplinaryeventsrelatedtopastorpresentinvestmentclients.
Item10: OtherFinancialIndustryActivitiesandAffiliations A. FinancialIndustryActivities
ALPHA WEALTH FUNDS is not a registered broker-dealer and does not have anapplicationpendingtoregisterasabroker-dealer.Furthermore,noneofAlphaWealthFunds’ management or supervised persons is registered as representatives or hasapplicationspendingtoregisterasrepresentativesofabroker-dealer.
B. FinancialIndustryAffiliationsALPHA WEALTH FUNDS is not registered as a Futures Commission Merchant,Commodity Pool Operator, or Commodity Trading Advisor and does not have anapplicationpendingtoregisterassuch.Furthermore,noneofALPHAWEALTHFUNDS’Smanagement or supervised persons is registered as, or has applications pending toregisterasassociatedpersonsoftheforegoingentities.
C. OtherMaterialRelationshipsAsnotedabove,ALPHAWEALTHFUNDSservesasthegeneralpartnertoTHEINSIDERSFUND,L.P.,aDelawarelimitedpartnership,whichinvestsitsassetsinsecurities.Therearespecificconflictsofinterestassociatedwithinvestinginpooledinvestmentvehicles.Our Memorandum contains explicit information concerning important conflicts ofinterestandothermaterialaspectsoftheFund.TheMemorandummustbereadcarefullybeforemakinganydecisionregardinginvesting.Theinformationhereinisqualifiedinitsentiretyby, and shouldbe read in conjunctionwith, the information contained in theMemorandum.Clientswhoseaccountsareseparatelymanagedmay,fromtimetotime,besolicitedtoinvestintheFundsolongas(i)suchclientsofALPHAWEALTHFUNDSarequalified to make such an investment into the Fund and (ii) the Fund is a suitableinvestmentforsuchclientsofALPHAWEALTHFUNDS.
ALPHAWEALTHFUNDSdoesnothaveanyotherarrangementsthatarematerialtoitsadvisoryoritsclientswitharelatedpersonwhoisabroker-dealer,investmentcompany,otherinvestmentadvisor,financialplanningfirm,commoditypooloperator,commoditytradingadviserorfuturescommissionmerchant,bankingorthriftinstitution,accountingfirm,lawfirm,insurancecompanyoragency,pensionconsultant,oranentitythatcreatesorpackageslimitedFundsotherthanthosealreadydisclosedherein.
D. OtherInvestmentAdvisersALPHAWEALTHFUNDSdoesnothaveanyarrangementsthatarematerialtoitsadvisoryoritsclientswithotherinvestmentadvisers.
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Item11: CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading
A. CodeofEthicsAllemployeesofALPHAWEALTHFUNDSmustactinanethicalandprofessionalmanner.In view of the foregoing and applicable provisions of relevant law, ALPHAWEALTHFUNDShasdeterminedtoadoptaCodeofEthicstospecifyandprohibitcertaintypesoftransactionsdeemed tocreateconflictsof interest (orat least thepotential foror theappearanceofsuchaconflict),andtoestablishreportingrequirementsandenforcementproceduresrelatingtopersonaltradingbyALPHAWEALTHFUNDSpersonnel.ALPHAWEALTHFUNDS’SCodeofEthics,whichspecificallydealswithprofessionalstandards,insider trading, personal trading, gifts and entertainment, and fiduciary duties,establishes ideals forethical conductbasedupon fundamentalprinciplesofopenness,integrity,honesty,andtrust.ALPHAWEALTHFUNDSwillprovideacopyofitsCodeofEthicstoanyclientorprospectiveclientuponrequest.
B. ParticipationofInterestinClientTransactionsALPHAWEALTHFUNDSrecommendstoitsinvestmentadvisoryclientsorprospectiveinvestmentadvisoryclientsthepurchaseorsaleofinterestsintheFund.AlphaWealthFunds’clientsmay,fromtimetotime,besolicitedtoinvestintheFundsolongas(i)suchclientsofALPHAWEALTHFUNDSarequalifiedtomakesuchaninvestmentintotheFundand(ii) theFund isasuitable investment forsuchclientsofALPHAWEALTHFUNDS.ALPHA WEALTH FUNDS receives a Management Fee and a Performance Fee ascompensationfortheservicesitprovidestotheFund.Mr.SaxisalsoaninvestorintheFund. These and other pertinent conflicts of interest are disclosed in the Fund’smemorandum.ALPHAWEALTHFUNDSwillprovidenotification toclientsadvisingofsuchconflictsofinterest.
C. Proprietary/SimultaneousTradingAt times, we may buy or sell for our own accounts securities that we have alsorecommendfortheaccountsthatareseparatelymanagedandfortheFund.However,anypurchaseor saleof a securitybyALPHAWEALTHFUNDSora relatedpersonwillbesubjecttoAlphaWealthFunds’ fiduciarydutytoourclientaccounts.ALPHAWEALTHFUNDSanditsemployeeshaveafiduciarydutytoplacetheinterestsofitsclientsaheadofitsowninterests.ALPHAWEALTHFUNDSwillalwaysdocumentanytransactionsthatcouldbeconstruedasconflictsofinterest.Tomitigateorremedyanyconflictsofinterestorperceivedconflictsofinterest,wewillmonitortradingreportsforadherencetoourCodeofEthics.Fromtimetotime,representativesofALPHAWEALTHFUNDSmaybuyorsellsecuritiesforthemselvesatoraroundthesametimeourclientaccounts. Inany instancewheresimilar securities are bought or sold, we will uphold our fiduciary duty by alwaystransactingonbehalfofourclientbeforetransactingforourownbenefit.
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Item12: BrokeragePractices
A. SelectionandRecommendationTheFundALPHAWEALTHFUNDS, asGeneralPartner and investment adviser to theFund,hasselectedTradeStationSecurities,Inc.(“TradeStation”)andInteractiveBrokers,membersoftheFinancialIndustryRegulatoryAuthority,Inc.(“FINRA”)andtheSecuritiesInvestorProtectionCorp.(“SIPC”)astheFund’sprimebrokerstoexecutetradesandcustodian.
ALPHAWEALTHFUNDSwillhavecompletediscretionregardingtheselectionofbrokersfortheFundandtheamountofbrokeragecommissionsandfeespaidtosuchbrokers,and thisdeterminationwill bebasedupon four factors: (1)where thebest execution(price)islikelytobeobtained;(2)abrokeragefirm'sresearchandinvestmentideasthatdirectlyimpacttheFund'sportfolio;(3)afirm'sabilitytoproperlyexecuteanyorders(basedonthesizeofthetradeanditscomplexitytoexecute);and(4)theoperationalaspectsofbrokeragefirms'backoffice(willtheFundreceivepaymentofsecuritiesonatimely basis) and custodian or other administrative services. “Best execution” is notsynonymouswithlowestbrokeragecommission.Consequently,ALPHAWEALTHFUNDSmaypay a brokerage commission in excess of thatwhich another brokermight havecharged for executing the same transaction for other investment funds similar to theFund.However,ALPHAWEALTHFUNDShasdeterminedthattheresearch,executionandotherservicesrenderedbyaparticularbrokermeritgreaterthantypicalfees.
AccountsManagedSeparatelyALPHAWEALTHFUNDSwillgenerallyrecommendbroker-dealersorcustodiansthatithasestablishedarrangementsoragreement.ALPHAWEALTHFUNDSwillallowclientstomaintainaccountsatanybrokeragefirm.ALPHAWEALTHFUNDShasapre-existingbrokerage and custodian relationships with Interactive Brokers and FidelityInvestments. Both broker dealer firms are members of the Financial Authority, Inc.(“FINRA”) and the Securities Investor Protection Corp. (“SIPC”). The final choice ofaccount custodianwillbe left to thediscretionof the clientprior toentering into theAgreement.However,ifclientschooseanyotherbrokerforcustodyandtradingoftheiraccount,clientsareresponsiblefornegotiatingfeesandcommissionsschedules.
IninstanceswhereALPHAWEALTHFUNDShasdiscretionwithrespecttobroker-dealerselection,ALPHAWEALTHFUNDSwillseek“bestexecution”foreachtrade,whichisacombination of price, quality of execution and other factors. In making brokeragedeterminations,ALPHAWEALTHFUNDSwillconsideranumberofjudgmentalfactors,including, without limitation: 1) clearance and settlement capabilities; 2) quality ofconfirmations and account statements; 3) the ability of the broker to settle the tradepromptlyandaccurately;4)thefinancialstanding,reputationandintegrityofthebroker-dealer; 5) the broker-dealer’s access to markets, research capabilities, marketknowledge, and any “value added” characteristics; 6) Alpha Wealth Funds’ pastexperiencewiththebroker-dealer;7)AlphaWealthFunds’pastexperiencewithsimilartrades;and8)anyotherfactors.Recognizingthevalueofthesefactors,clientsmaypayabrokeragecommissioninexcessofthatwhichanotherbrokermighthavechargedfor
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effectingthesametransaction.
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ALPHAWEALTHFUNDSrecognizesthatbestexecutionisnotsynonymouswithlowestbrokeragecommission.
B. SoftDollarBenefitsALPHAWEALTHFUNDShasnotreceivedresearchorotherproductsorservicesotherthan execution from a broker-dealer or a third party in connection with a client’ssecuritiestransactions.Ithasnotgenerated“softdollars”benefits.AsofDecember31,2016,theFirmhasnotutilizedanyparticularprocedurestodirectclienttransactionsinreturnforproductsandresearchservices.TheFund
ALPHAWEALTHFUNDSmaygenerate“softdollars”withrespecttotheFund’strades.Ifitdoesso,ALPHAWEALTHFUNDS intends tocomplywith thesafeharborofSection28(e) of the Securities Exchange Act of 1934, as amended. Under “soft dollar”arrangements, thebrokeragefirmswouldprovideorpaythecostsofcertainservices,equipmentorotheritemsforthebenefitoftheFund,ALPHAWEALTHFUNDS,oroneormore of their affiliates in consideration of the allocation to the firm of brokeragetransactions(withresultingcommissionincome)madeonbehalfoftheFundonbothanagencyandnetbasis.Servicesthatmaybefurnishedorpaidforbybrokersordealersmay include, without limitation (in addition to the research products and servicesdescribedbelow)specialexecutioncapabilities,clearance,settlement,netpricing,onlinepricing,blocktradingandblockpositioningcapabilities,willingnesstoexecuterelatedorunrelated difficult transactions in the future, performance measurement data,consultations, financial strength and stability, efficiency of execution and errorresolution,availabilityofstockstoborrowforshortsales,custody,recordkeepingandsimilar services. Although these soft dollar arrangements may benefit the Fund andALPHA WEALTH FUNDS by reducing their respective expenses, the amount of theManagementFeespayabletoALPHAWEALTHFUNDSwillnotbereduced.
Becausesuchservicescouldbeconsidered tobenefitALPHAWEALTHFUNDSand itsaffiliates,andthe“softdollars”usedtoacquirethemaretheassetsoftheFund,ALPHAWEALTHFUNDScouldbeconsideredtohaveaconflictofinterestinallocatingbrokeragebusinessonbehalfoftheFund.Nonetheless,ALPHAWEALTHFUNDSbelievesthattotheextent itmakes allocations to brokerage businesswith soft dollar arrangements, thiswould generally enhance the ability to obtain research, optimal execution and otherbenefitsonbehalfoftheFund.TheFundwillnotnecessarilybenefitfromallsuchsoftdollarservices.ALPHAWEALTHFUNDSmayalsoderivesubstantialbenefitsfromtheseservices,particularlytotheextentthatALPHAWEALTHFUNDSusessoftdollarstopayfor expenses it would otherwise be required to pay itself. Furthermore, because theextentoftheproductsandservicesprovidedbythesebrokerswillbebasedlargelyonthevolumeofcommissionsgeneratedbytheFund’stradingactivities,thesesoftdollararrangements may create an incentive for ALPHA WEALTH FUNDS to increase thevolumeoftheFund’stradingactivities.
AsofDecember31,2016,ourFirmhasnotreceivedotherproductsorservicesotherthanresearchservicesandexecutionfromabroker-dealerorathirdpartyinconnectionwiththeFund’ssecuritiestransactions.Further,ourFirmhasnotutilizedanyparticular
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proceduresdirectingclienttransactionsinreturnforproductsand
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research services because the Firmmanages a Fund, and any soft dollar benefits arederivedfromtradesfortheFund.AccountsManagedSeparately:TheFirmdoesnotgeneratesoftdollarbenefits fromaccountsmanagedseparatelyandoutsidetheFund.
C. BrokerageforClientReferralsWhenselectingorrecommendingbroker-dealerstoclients,theFirmdoesnotconsiderwhetheritreceivesclientreferralsfromabroker-dealerorthirdparty.
D. DirectedBrokerageALPHA WEALTH FUNDS recommends that clients utilize specific broker-dealers toexecutetransactions.Thisarrangementisdesignedtomaximizeefficiencyandtobecosteffectiveforourclients.ByrequiringclientstouseourspecificcustodianswhichALPHAWEALTHFUNDShasapproved,weseek toachievemost favorableexecutionof clienttransactions.
FortheinvestmentadvisoryservicesinvolvedwithmanagingtheFund:Duetothestructure of pooled investment vehicles, directed brokerage arrangements are notapplicabletonoraffecttheinvestmentmanagementpoliciesofALPHAWEALTHFUNDS.
Foraccountsmanagedseparately:ALPHAWEALTHFUNDSwillgenerallyrecommendtoclients thecertainbroker-dealersorcustodians,but thedecisionregardingbroker-dealer or custodian will be made by the client prior to entering into the advisoryagreement.Foraccountsmanagedseparately,ALPHAWEALTHFUNDSpermitsclientstodirecttheuseaparticularbrokeragefirm.Iftheclientdirectsbrokerage,ALPHAWEALTHFUNDScannotnegotiatecommissionrates,ALPHAWEALTHFUNDSwillhoweveruse itsbesteffortstonegotiatethemostfavorableratesbasedonthesizeandtheanticipatedtradingactivityintheaccount.Asaresultofsuchdirectedbrokerage,andattheclient’srequestanddirection,clientsmaypayhigherbrokeragecommissionsthanmightotherwisebepaidifALPHAWEALTHFUNDSweregranteddiscretiontoselectabrokertohandletheaccount. In addition, clients might lose the benefits of potentially better executionsavailablethroughbunchedtransactionsoftherecommendedbroker-dealercustodian.
E. OrderAggregationALPHAWEALTHFUNDSmay,attimes,aggregatesaleandpurchaseordersofsecuritiesfortheFundwithsimilarordersfortheotheraccountsinordertoobtainthebestpricingaveragesandminimizetradingcostsfortheFund.ThispracticeisreasonablylikelytoresultinadministrativeconvenienceoranoveralleconomicbenefittotheFundbasedonanevaluationthattheFundisbenefitedbyrelativelybetterpurchaseorsaleprices,lowercommissionexpensesorbeneficialtimingoftransactionsoracombinationoftheseandother factors. Our policies and proceduresmandate aggregatingmultiple orders andaggregateorderswillbeallocatedtoaccountsinasystematicnon-preferentialmanner.
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Item13: ReviewofAccounts
A. PeriodicReviewsTheFund:ALPHAWEALTHFUNDSreviewstheFund’sinvestmentprogram,includingcurrentholdings,onacontinualbasis.TheFirmreviewstheFund’sinvestmentprogramtoanalyzeratesofreturn,allocationofassetsandtoverifythattheFund’sportfolioisconsistentwith its investmentobjective.Suchreview isconductedbyHarveySax, theManagingMemberandInvestmentAdviserRepresentativeofALPHAWEALTHFUNDS.AccountsManagedSeparately:ALPHAWEALTHFUNDS reviews its client’s accountactivity at least quarterly. Our MANAGING MEMBER and Investment AdviserRepresentative, Chase Thomas, is responsible for conducting the review of clientaccounts. The reviews consist of determining whether your investment goals andobjectivesarealignedwithour investmentstrategies. If reallocationof investments isnecessary,wesellunderperforminginvestmentsorbuynewinvestmentsthataremoreappropriateforyourinvestmentgoalsandobjectives.
B. IntermittentReviewFactorsFortheFund:Intermittentreviewsmaybetriggeredbysubstantialmarketfluctuation,economicorpoliticalevents,orbychangesintheFund’sobjectives.For Accounts Managed Separately: Intermittent reviews may be triggered bysubstantial market fluctuation, economic or political events, or by changes in yourfinancial status (such as retirement, termination of employment, relocation, orinheritance).
ClientsareadvisedtonotifyALPHAWEALTHFUNDSpromptlyifthereareanymaterialchangesintheirfinancialsituation,investmentobjectives,orintheeventtheywishtoplacerestrictionsplacedontheiraccount.
C. ClientReportsTheFund:TheFund’sbooksofaccountwillbeauditedattheendofeachfiscalyearbyafirm of certified public accountants selected by ALPHA WEALTH FUNDS. Books ofaccountwill generallybekeptbyALPHAWEALTHFUNDS, in accordancewithGAAP.ALPHAWEALTHFUNDSwillfurnishauditedfinancialstatementstoallLimitedPartnerswithin 120 days, or as soon thereafter as is reasonably practicable, following theconclusion of each fiscal year.Notwithstanding the foregoing, the audit of the Fund’sbooksofaccountandthefurnishingofauditedfinancialstatementsmaybewaivedforany fiscal year upon the unanimous consent of the Partners. In addition, all LimitedPartnerswillreceivetheinformationnecessarytopreparefederalandstateincometaxreturnsfollowingtheconclusionofsuchfiscalyearassoonthereafterasisreasonablypractical.AllLimitedPartnerswillalsoreceiveunauditedperformancereportsandsuchother informationasALPHAWEALTHFUNDSdeterminesonamonthlybasis.ALPHAWEALTH FUNDSwill not be required to provide informationwith regard to specificinvestmenttransactionsoftheFund.
AccountsSeparatelyManaged:Clientswillreceiveareportatleastquarterlyfromthecustodian,detailingaccountperformanceandaccountholdings.Inmostcases,clients
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willalsohaveonlineaccesstoviewtheiraccountatanytime.
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Item14: ClientReferralsandOtherCompensation
A. EconomicBenefitsfromOthersTheFirmdoesnotreceiveaneconomicbenefit(suchassalesawardsorotherprizes)fromanythirdpartyforprovidinginvestmentadviceorotheradvisoryservicestoitsclients.
B. CompensationtounaffiliatedThirdPartiesALPHAWEALTHFUNDSanticipatesthatsellingcommissionsand/orreferralfeesmaybe paid in connection with the offering of the Fund’s Interests. A portion of theManagement Fee may be remitted to unaffiliated third parties introducing LimitedPartners to the Fund, or ALPHA WEALTH FUNDS may use its own resources tocompensatethirdpartiesforsuchintroductions.ALPHAWEALTHFUNDSmayalsodirectbrokeragefromtheFund’stradestobroker-dealerswhichintroduceLimitedPartnerstotheFund,subjecttoapplicablelaws.
Item15: Custody
A. CustodianofAssetsTheFund:ALPHAWEALTHFUNDShascustodyofFund’sportfolioassetsbecauseithastheabilitytodeductadvisoryfeespayabletoitandhasageneralpowerofattorneyoverthe Fund’s accounts. Additionally, as General Partner of the Fund, ALPHA WEALTHFUNDShasindirectcustodyofFund’sportfolioassets(fundsandsecurities).ThephysicalassetsoftheFundareheldinanaccountwithTradeStationSecurities,Inc..TradeStationis theFund’sprimebroker.TradeStationSecurities, Inc. is amemberof theFinancialIndustry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor ProtectionCorporation(“SIPC”).PleaserefertoItem12forinformationregardingbrokerage.
AccountsManagedSeparately:Withregardtoindividualaccountsmanagedseparately,ALPHAWEALTHFUNDSdoesnothavedirectcustodyofanyclientfundsorsecurities.ALPHAWEALTHFUNDSdoesnothavephysicalpossessionofclientfundsorsecurities.ALPHAWEALTH FUNDS has custody by virtue of its ability to deduct advisory feespayable to it. Payment of fees is paid by the custodian from the custodian brokerageaccountthatholdsclientfundsandsecuritiespursuanttotheclient’saccountapplication.In certain jurisdictions, thismay be deemed custody. Please refer to Item 12 for ourinformationregardingourBrokeragePractices.
B. AccountStatementsThe Fund: ALPHA WEALTH FUNDS will provide Limited Partners with unauditedperformancereportsandotherpertinentinformationregardingtheFund’sperformanceon amonthly basis provided byNAVConsulting, an independent fund administrator.PleasebeadvisedthatALPHAWEALTHFUNDSisnotrequiredtoprovideinformationaboutspecificinvestmenttransactionsoftheFundtotheLimitedPartners.
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TheFund’sbooksofaccountwillbeauditedattheendofeachfiscalyearbyafirmofcertifiedpublicaccountantsselectedbyALPHAWEALTHFUNDS.BooksofaccountwillgenerallybekeptbyALPHAWEALTHFUNDS,inaccordancewithGAAP.ALPHAWEALTHFUNDSwillfurnishauditedfinancialstatementstoallLimitedPartnerswithin120days,orassoonthereafterasisreasonablypracticable,followingtheconclusionofeachfiscalyear.Notwithstandingthe foregoing, theauditof theFund’sbooksofaccountandthefurnishingofaudited financialstatementsmaybewaived forany fiscalyearupontheunanimous consent of the Partners. In addition, all Limited Partnerswill receive theinformation necessary to prepare federal and state income tax returns following theconclusionofsuchfiscalyearassoonthereafterasisreasonablypractical.AccountsManagedSeparately:Althoughweareyouradviser,yourstatementswillbemailed ormade available electronically by thebroker-dealer or custodian.When youreceive these statements, please review them carefully. Please compare asset values,holdings,andfeesonyourstatementtothatintheaccountstatementissuedthepreviousquarter.
Item16: InvestmentDiscretion
TheFund:ALPHAWEALTHFUNDSisnotlimitedinitsauthoritytopurchasesecuritiesfor the Fund. ALPHA WEALTH FUNDS has full discretion and authority to make allinvestmentdecisionswithrespecttothetypesofsecuritiestobeboughtorsoldortheamountofsecuritiestobeboughtorsoldfortheFund.
AccountsManagedSeparately:ItisAlphaWealthFunds’customaryproceduretohavefull discretionary authority in order to supervise and direct the investments of youraccounts. You grant this authority upon execution of our Investment ManagementAgreement.Thisauthority is for thepurposeofmakingand implementing investmentdecisions, without your prior consultation. All investment decisions are made inaccordancewithyourstatedinvestmentobjectives.Ourdiscretionaryauthoritydoesnotgive authority to take or have possession of any assets in your account or to directdelivery of any securities or payment of any funds held in the account to our Firm.Furthermore,ourauthoritybyagreementdoesnotallowustodirectthedispositionofsuchsecuritiesorfundstoanyoneexceptyou-theaccountowner.StandardLimitations:Ourdiscretionaryauthoritydoesnotgiveauthority to takeorhavepossessionofanyassetsinyouraccountortodirectdeliveryofanysecuritiesorpaymentof any fundsheld in the account toour firm.Furthermore, our authoritybyagreement does not allow us to direct the disposition of such securities or funds toanyoneexcepttheaccountowner.
Item17: VotingClientSecurities
The Fund: ALPHAWEALTH FUNDSwill exercise all rights, powers and privileges ofownership in all Fund property, including the right to vote, give assent, execute, anddeliverproxies,andtheFund’sproxyvotingpoliciesoverridetheundersigned’sproxy
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votingpolicies.Fund
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investors are required to adopt the voting policies of the Fund for purposes of theirinvestments in the Fund. ALPHA WEALTH FUNDS has adopted proxy voting policiesandproceduresforvotingproxiesonbehalfoftheFund.
AccountsManagedSeparately:Clients retain the right tovote all proxieswhich aresolicitedforsecuritiesheldintheiraccounts.ALPHAWEALTHFUNDSwillnottakenorberequiredtotakeanyactionorrenderanyadvicewithrespecttothevotingofproxiessolicitedby orwith respect to the issuers of securities inwhich assets of the client’saccountmaybeinvestedinoccasionally.Furthermore,ALPHAWEALTHFUNDSwillnottakeanyactionorrenderanyadvicewithrespecttoanysecuritiesheldinanyclient’saccountsthatarenamedinorsubjecttoclassactionlawsuits.ALPHAWEALTHFUNDSwillhowever,forwardtoyouanyinformationreceivedbyourFirmregardingclassactionlegalmattersinvolvinganysecurityheldinyouraccount.
Item18: FinancialInformation
A. BalanceSheetRequirementALPHAWEALTHFUNDSisnotthequalifiedcustodianforclientfundsorsecuritiesanddoesnotrequireprepaymentoffeesofmorethan$500perclient,six(6)monthsormoreinadvance.ALPHAWEALTH FUNDS is in compliancewith its home state’sminimum capital networthrequirements.TheFirmwillcomplywiththebalancesheetreportfilingwhichmayberequiredbyapplicablestaterules.
B. FinancialConditionALPHAWEALTHFUNDSdoesnothaveanyfinancialimpairmentthatwouldprecludethefirmfrommeetingcontractualcommitmentstoclients.
C. BankruptcyPetitionALPHAWEALTHFUNDShasnotbeenthesubjectofabankruptcypetitionatanytimeduringthelast10years.
Item19: RequirementsforState-RegisteredAdvisers
A. FirmManagementALPHAWEALTHFUNDShastwomanagingmember,HarveySaxandChaseThomas.BothMr.SaxandMr.Thomasaretheinvestmentadviserrepresentatives.Mr.Sax’seducationandbusinessbackgroundandMr.Thomas’scanbefoundintheBrochureSupplement(Part2BofFormADV).
B. OtherBusinessActivitiesALPHAWEALTHFUNDSisnotengagedinanyotherbusinessotherthangivinginvestmentadvice.
C. Performance-BasedFees
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As stated in Item 6, ALPHA WEALTH FUNDS does assess Performance-Based Fees(“Performance Fees”). Performance Fees are based on a share of the capital gains orcapitalappreciationofthe
34
assetsofaclient.FeesbasedonperformancemeansALPHAWEALTHFUNDSparticipatesdirectlyintheaccount’sresults.TheFirmreceivesanannualPerformanceFeeintheamountequaltotwenty(20%)ofthenetcapitalappreciationallocatedduringeachyear.
ThePerformanceFeewillonlybechargedto“qualifiedclients”asthattermisdefinedinRule 205-3 under the Investment Adviser Act of 1940, or similar state statutes. Allinvestors in the Fund will meet the requirements of Rule 164-2-1 of the UtahAdministrativeCode.
Performance-based compensation may indirectly create an incentive for the Firm tomakeinvestmentsonbehalfoftheFundthatareriskierormorespeculativethanwouldbethecaseintheabsenceofsuchallocation.
D. DisciplinaryReportingDisclosureD.1. ArbitrationClaimsNone. Neither the Firm nor its management persons has been found liable in anyarbitration claim alleging damages in excess of $2,500 involving an investment orinvestment-related business or activity, fraud, false statements or omissions, theft,embezzlementorotherwrongfultakingofproperty,bribery,forgerycounterfeitingorextortionordishonest,unfairorunethicalpractices.
D.2. Civil,Self-RegulatoryOrganization(SRO),orAdministrativeProceedingNone.Neitherthefirmnoritsmanagementpersonshasbeenfoundliableinanycivil,self-regulatoryorganization, or administrativeproceeding involving an investment orinvestment related business or activity, fraud, false statements or omissions, theftembezzlementorotherwrongfultakingofpropertybribery,forgery,counterfeiting,orextortion;ordishonest,unfairorunethicalpractices.
E. RelationshipsorArrangementswithSecuritiesIssuersNeithertheFirmnoritsemployeeshasarelationshiporarrangementwithanyissuerofsecurities.
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PrivacyPolicy
ALPHAWEALTHFUNDSdoesnotdisclosenonpublicpersonalinformationaboutitsclientsor formerclients toanypersonsother thanasdescribedbelow.ALPHAWEALTHFUNDScollectsinformationaboutitsclients(suchaname,address,socialsecuritynumber,assetsand income) from discussions with clients, from documents that clients may deliver toALPHA WEALTH FUNDS (such as account applications) and in the course of providingservices.Inordertoserviceitsclientaccountsandeffectclienttransactions,ALPHAWEALTHFUNDSmayprovideclientpersonalinformationtoitsaffiliatesandtofirmsthatassistitinservicing client accounts and which have a need for such information. ALPHAWEALTHFUNDS does not otherwise provide information about its clients to outside firms,organizations or individuals except as required by law. Any party that receives thisinformationwilluseitonlyfortheservicesandasallowedbyapplicablelaworregulationsandisnotpermittedtoshareorusethisinformationforanyotherpurpose.
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BrochureSupplement(Parts2BofFormADV)
HARVEYSAXandChaseThomas
INVESTMENTADVISERREPRESENTATIVEs
ALPHAWEALTHFUNDS.,LLC
1887GoldDustLane
Suite203A
Telephone:435-658-1934
Email:[email protected]
or
Website:www.ALPHAWEALTH
FUNDS.comThesebrochuresupplementsprovideinformationabouttheInvestmentAdviserRepresentativesofALPHAWEALTHFUNDS.,LLC.YoushouldhavereceivedacopyoftheBrochureforALPHAWEALTHFUNDS.,CRDNo.150231aswell.PleasecontactHarveySax,InvestmentAdvisorRepresentative,ifyoudidnotreceiveALPHAWEALTHFUNDS.’sbrochure.Youcanalsocontact
37
February2020
A. GeneralRequirementsGenerally,ALPHAWEALTHFUNDSrequiresemployeestoholdacollegeoradvanceddegreeor have relevantworking experience in the securities industry. Any employee of ALPHAWEALTH FUNDS acting in a representative capacity will be appropriate licensed orregisteredassuch.
B. InvestmentAdviserRepresentativeInformationWecurrentlyhaveone(2)investmentadviserrepresentativesemployedbyALPHAWEALTHFUNDS.ThisBrochureSupplementprovidesinformationaboutHarveySaxandChaseThomas
Item2 EducationandBusinessExperience
HarveySaxCRDNumber:1831458YearofBirth: 1951EDUCATIONALBACKGROUND:MastersofSecurityAnalysisandPortfolioManagement,CreightonUniversity2014B.A.(English),EmoryUniversity,1972.
RELATEDBUSINESSEXPERIENCE:
Mr.Saxhasabroadbackgroundinthetechnologyandfinancialservicesindustries.HehasservedasaVicePresidentandSeniorVicePresidentatsuch firmsasBearStearns,PaineWebber, andOppenheimer.Mr. Saxwas the founder andCEOof one of the first publiclytraded Internet companies, HomeCom Communications, Inc., highlighted by Deloitte &Touche naming it as#219 in the 500 Fastest Growing Tech Companies in 2000. He hasworkedasastockbroker,aninstitutionalsalesperson,aninvestmentbanker,andtheCEOofa publicly traded company. Having sat at most seats at the investment table, Mr. Sax'sinvestmentviewisuniquelyshapedbyhis360degreeperspective.Mr.Saxhasspentthelastnineyearsmanagingpersonalinvestments.
ALPHAWEALTHFUNDS.,LLCManagingMember
(2010toPresent)
SelfEmployed
(2001to2010)
HomeComCommunications,Inc.CEO
(1996to2000)
Oppenheimer&Co.,Inc.SeniorVicePresident
(1994to1996)
D.Blech&CompanySeniorVicePresident
36(1994to1994)
37
PaineWebberIncorporated (1992to1994)ChaseThomasCRDNumber:6086393YearofBirth: 1988EDUCATIONALBACKGROUND:BachelorofArts,DancePerformance 2012BrighamYoungUniversity–Provo,UTDesignations
CFP® 2015July2015–March2018InvestmentAdviserRepresentativeatWilkinsonFinancialLLCJune2012–July2015FinancialRepresentativeatFidelityInvestmentsApril2009–August2009 FinancialRepresentativeatSummitFinancialJune2006–January2012
MinimumDesignationRequirementsCertifiedFinancialPlanner(CFP)TheCERTIFIEDFINANCIALPLANNER™,CFP®andfederallyregisteredCFP(withflamedesign)marks(collectively,the“CFP®marks”)areprofessionalcertificationmarksgrantedintheUnitedStatesbyCertifiedFinancialPlannerBoardofStandards,Inc.(“CFPBoard”).TheCFP®certificationisavoluntarycertification;nofederalorstatelaworregulationrequiresfinancialplannerstoholdCFP®certification.ItisrecognizedintheUnitedStatesandanumberofothercountriesforits(1)highstandardofprofessionaleducation;(2)stringentcodeofconductandstandardsofpractice;and(3)ethicalrequirementsthatgovernprofessionalengagementswithclients.Currently,morethan62,000individualshaveobtainedCFP®certificationintheUnitedStates.ToattaintherighttousetheCFP®marks,anindividualmustsatisfactorilyfulfillthefollowingrequirements:Prerequisites/Experience:Completeatleastthreeyearsoffull---timefinancialplanning---relatedexperience(ortheequivalent,measuredas2,000hoursperyear)EducationalRequirements:CompleteanadvancedcollegelevelcourseofstudyaddressingthefinancialplanningsubjectareasthatCFPBoard'sstudieshavedeterminedasnecessaryforthecompetentandprofessionaldeliveryoffinancialplanningservicesandattainabachelor’sDegreefromaregionallyaccreditedUnitedStatescollegeoruniversity(oritsequivalentfromaforeignuniversity).CFPBoard'sfinancialplanningsubjectareasincludeinsuranceplanningandriskmanagement,employeebenefitsplanning,investmentplanning,incometaxplanning,retirementplanning,andestateplanning.ExaminationType:PassthecomprehensiveCFP®CertificationExamination.Theexamination,administeredin10hoursoveratwo-dayperiod,includescasestudiesandclientscenariosdesignedtotestone'sabilitytocorrectlydiagnosefinancialplanningIssuesandapplyone'sknowledgeoffinancialplanningtorealworldcircumstances.Ethics:AgreetobeboundbyCFPBoard'sStandardsofProfessional/Conduct,asetofdocumentsoutliningtheethicalandpracticestandardsforCFP®professionals.IndividualswhobecomecertifiedmustcompletethefollowingongoingeducationandethicsrequirementsinordertomaintaintherighttocontinuetousetheCFP®marks:ContinuingEducation/ExperienceRequirements:Complete30hoursofcontinuingeducationhourseverytwoyears,includingtwohoursontheCodeofEthicsandotherpartsoftheStandards
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ofProfessionalConducttomaintaincompetenceandkeepupwithdevelopments.Inthefinancialplanningfield.Ethics:RenewanagreementtobeboundbytheStandardsofProfessionalConduct.TheStandardsprominentlyrequirethatCFP®professionalsprovidefinancialplanningservicesatafiduciarystandardofcare.ThismeansCFP®professionalsmustprovidefinancialplanningservicesinthebestinterestsoftheirclients.CFP®professionalswhofailtocomplywiththeabovestandardsandrequirementsmaybesubjecttoCFPBoard’senforcementprocess,whichcouldresultinsuspensionorpermanentrevocationoftheirCFP®certification.
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.Item3 DisciplinaryInformationHarveySaxnorChaseThomashaveanylegalordisciplinaryeventsmaterialtoaclient’sorprospectiveclient’sevaluation.
Item4 OtherBusinessActivities
HarveySaxisnotengagedinanyotherbusinessotherthangivinginvestmentadvice.ChaseThomasinadditiontogivinginvestmentadviceoffersfinancialplanningandinsurance
Item5 AdditionalCompensationHarveySaxnorChaseThomasreceivesanyeconomicbenefitfromanythirdpartyforprovidingadvisoryservices.
Item6 SupervisionHarvey Sax and Chase Thomas are both Managing Partners and Investment AdviserRepresentativesofALPHAWEALTHFUNDS&CO.,LLC.HarveySaxandChaseThomasareresponsibleforprovidingadvicetotheclients.Heisalsoresponsiblefortheadministrationofthefirm’soperations.
Item7 RequirementsforState-RegisteredAdvisersA.1 ArbitrationClaims.
None.HarveySaxnorChaseThomashavenotbeen found liable in anyarbitration claimallegingdamagesinexcessof$2,500involvinganinvestmentorinvestment-relatedbusinessor activity, fraud, false statements or omissions, theft, embezzlement or other wrongfultaking of property, bribery, forgery counterfeiting or extortion or dishonest, unfair orunethicalpractices.
A.2 Self-RegulatoryOrganizationorAdministrativeProceedingsNone.HarveySaxnorChaseThomashavenotbeenfoundliableinanycivil,self-regulatoryorganization,oradministrativeproceedinginvolvinganinvestmentorinvestmentrelatedbusiness or activity, fraud, false statements or omissions, theft embezzlement or otherwrongful taking of property bribery, forgery, counterfeiting, or extortion; or dishonest,unfairorunethicalpractices.B. BankruptcyPetitionsHarveySaxnorChaseThomashavebeenthesubjectofabankruptcypetitionatanytimeduringthelast10years.