Phase Two Capital, LLC

Phase Two Capital, LLC provides discretionary portfolio management to individual and high‑net‑worth clients, delivering tailored investment programs and written Investment Policy Statements that document goals, risk tolerance, tax considerations and liquidity needs. The firm reports approximately $25.5 million in assets under management across nine client accounts and states it imposes no account minimum.

The firm’s investment approach uses fundamental analysis and modern portfolio theory with a long‑term trading orientation, employing model portfolios and regular portfolio monitoring and quarterly reporting while generally operating under discretionary authority. Fees are withdrawn directly from client custodial accounts and all assets are managed in‑house rather than by third‑party sub‑advisers.

Distinctive operational features noted in the brochure include a small client base with relatively high assets per client, a requirement that clients use one of a limited set of custodians (Interactive Brokers, TD Waterhouse, Shareholders Service Group, or Schwab), and a stated policy not to aggregate block trades for multiple clients, which the firm acknowledges can affect execution especially for less liquid securities. The brochure also discloses that the firm may receive research or other services from custodians (soft‑dollar benefits), a practice that can create incentives tied to custodial selection.