Capital Financial Consultants Group, Inc.

Capital Financial Consultants Group is a small, state-registered advisory firm with two investment professionals managing roughly $37.3 million for about 93 clients. The firm provides discretionary investment supervisory services (individual portfolio management) and written financial planning, and serves a mix of individual clients (including high-net-worth individuals), charitable organizations, pension and profit-sharing plans, and corporate clients.

The firm uses a blend of analytical methods — including fundamental, technical (charting and cyclical) and asset-allocation analysis — and employs a range of trading strategies from long-term buy-and-hold to short-term trading. Notably, Capital Financial implements options strategies (covered calls and spreads), short sales, and margin/borrowing in client accounts when appropriate, and states these techniques are used only consistent with each client’s objectives and risk tolerance; accounts are generally reviewed at least quarterly.

What distinguishes Capital Financial from many peers is the use of leverage and derivatives in separately managed accounts, a practice the firm notes as increasing exposure and requiring suitability assessment. The firm’s advisory personnel also maintain separate registrations as investment adviser representatives and registered representatives of an unaffiliated broker-dealer and act as insurance agents — arrangements disclosed in the brochure and managed through written policies and a Code of Ethics — and the firm recently transitioned from SEC registration to California state registration.