Chevy Chase, MD Office

Potomac Investment Company is a small investment management firm that provides discretionary portfolio management to individuals (typically high-net-worth), as well as trusts, estates, charitable organizations and retirement accounts. The firm manages portfolios of publicly traded equities, mutual funds and fixed‑income securities (including municipal bonds) and tailors advisory services to client‑imposed investment restrictions.

The firm follows a conservative, long‑term investment approach using fundamental and cyclical security analysis and seeks diversification (generally limiting positions to about 5% of a portfolio). It is not a frequent trader, rarely uses margin, never engages in short sales, and manages accounts on a fully discretionary basis with fees billed quarterly through the custodian.

Distinctive for its peer group, the firm also maintains broker‑dealer activity: it acts as an introducing broker, directs trades through a clearing broker, and accepts brokerage commissions on equity, bond and some mutual fund trades, while a principal is a registered representative. The brochure discloses that most revenue comes from advisory fees but addresses the conflict inherent in receiving commissions by relying on custodian confirmations, client invoices for fee deductions, and client awareness of trades.