Frequently Asked Questions
Answers to what people most often ask about working with a fee-only fiduciary.
Choose a topic to see the questions in that area.
What is Davidson Capital Management?
Davidson Capital Management is a family owned and operated, fee-only investment advisory firm founded in 1989. We are a Registered Investment Advisor with the U.S. Securities and Exchange Commission, with offices in Corpus Christi and San Antonio, Texas. We manage portfolios for individuals, families, business owners, foundations, and endowments.
What does it mean that you are a fiduciary?
As a fiduciary, we are held to a legal standard that requires us to act in your interest first, at all times. Every decision we make is based on what fits your goals and circumstances, not on any outside incentive.
What is a fee-only advisor?
A fee-only advisor is paid only by clients, through a transparent fee, and accepts no commissions, product sales, or third-party compensation. Because we are fee-only, the management fee you see is the only way we are paid, which keeps our interests aligned with yours.
What is the difference between a Registered Investment Advisor and a broker?
A Registered Investment Advisor is held to a fiduciary standard and is paid by clients. A broker may earn commissions for selling products and is often held to a lower standard. We are a Registered Investment Advisor, so we sit on the same side of the table as the people we serve.
Do you sell financial products or insurance?
No. We do not sell any financial products or insurance, and we accept no commissions of any kind. We provide investment management only, so there is nothing we are paid to sell you.
How long has Davidson Capital Management been in business?
We were established in 1989 and have managed portfolios for clients ever since. Our team brings more than one hundred years of combined investment management experience.
Is Davidson Capital Management a family business?
Yes. We are family owned and operated, and members of the Davidson family are active in the firm today, across both our Corpus Christi headquarters and our San Antonio office.
Are you registered with the SEC?
Yes. We are an investment advisor registered with the U.S. Securities and Exchange Commission. You can review our filings, including our Form ADV, through the SEC’s adviser search.
How do I become a client?
Becoming a client starts with a complimentary conversation, by phone or at our Corpus Christi or San Antonio office. We talk through your goals and current situation to see whether we are a good fit, then go from there.
Learn more about becoming a client
What is a discovery meeting?
The discovery meeting is a complimentary, no-pressure conversation where we learn about your goals, your current situation, and your questions, and you learn how we work. There is no obligation.
Is the first consultation free?
Yes. The first conversation, including a review of your current portfolio, is complimentary and carries no obligation.
Can I get a second opinion on my current portfolio?
Yes. We offer a complimentary review of your current portfolio. It is a straightforward way to get an independent perspective and see whether our services fit your needs.
What should I bring to a first meeting?
A general picture of your current accounts and investments and a sense of your goals is helpful, but nothing formal is required for a first conversation. We will guide you on anything needed if you decide to move forward.
Where are your offices?
We would be glad to have you stop by. Our headquarters has been in Corpus Christi since 1989, and our San Antonio office is led by partner Kyle Davidson. If neither is close, please feel free to schedule a call.
How do I contact Davidson Capital Management?
Reaching us is easy, and a real person answers. Call us toll-free at 1-800-275-2162, or go straight to the office nearest you, Corpus Christi at (361)906-0070 or San Antonio at (210)418-1989. If you would rather start in writing, send a note through our contact form and we will follow up.
Who will I work with?
The people who manage your portfolio are the same people you talk to. You will work directly with our advisors, Jeff Davidson, Kyle Davidson, Joe C. Rust Jr., and Louis May, never a call center or a rotating cast. Because every decision is made in-house, the person who answers your call is the person who knows your account.
Who does Davidson Capital Management work with?
We work with individuals and families, business owners, foundations, endowments, and retirement plans such as pensions and profit-sharing 401(k)s. Many of our clients are in the Corpus Christi and San Antonio areas, and we also serve clients across Texas and around the country.
What services do you offer?
We provide active, in-house investment management built around each client’s goals. That includes portfolio management for individuals and families, strategic planning and investment management for endowments and foundations, and company-sponsored retirement plans.
Do you help with retirement planning?
Yes. Retirement is one of the most common reasons clients come to us, and we help you think through how your portfolio can work toward income and your longer-term goals.
Can you manage investments for a business or nonprofit?
Yes. We manage assets for businesses, company-sponsored retirement plans, foundations, and endowments, with strategies built around each organization’s objectives and time horizon.
Do I have to live in Corpus Christi or San Antonio to work with you?
No. Our offices are in Corpus Christi and San Antonio, but we serve clients throughout Texas and across the country. We can meet by phone or video as well as in person.
How does Davidson Capital Management invest my money?
We build actively managed, tactically balanced portfolios around your goals, risk tolerance, and time horizon, using a mix of stocks, bonds, mutual funds, and ETFs. We adjust the allocation across asset classes as market conditions change.
Do you make investment decisions in-house?
Yes. We do not outsource asset management to outside managers. All investment decisions are made in-house by our own portfolio management team.
What is your investment philosophy?
We actively manage tactically balanced portfolios and adjust the mix as conditions change. Our stock selection runs through a multi-step screening process, our bond strategy is guided by our interest-rate outlook, and our funds are chosen for diversification and consistency.
What is discretionary management?
Discretionary management means you authorize us to make and carry out investment decisions in your account based on your agreed strategy, without approving each transaction. This lets us act on opportunities and manage risk in a timely way.
Are accounts managed individually?
Yes. Investment management is provided on a discretionary basis, and each account is managed separately based on your goals and circumstances.
How much does Davidson Capital Management charge?
Our annual fee is based on the market value of the assets we manage: 1.00% on the first $1 million, 0.90% on the next $1 million, 0.80% on the next $2 million, and 0.70% thereafter. The schedule is tiered, so the higher tiers of a larger portfolio are charged at a lower rate.
How are your fees calculated?
Fees are calculated as a percentage of the market value of the assets we manage for you. As your portfolio value changes, the fee adjusts with it, which is why our guiding principle is that “the better you do, the better we do.”
Do you charge commissions or hidden fees?
No. We do not accept commissions or compensation of any kind from custodians, brokers, or investment transactions. The management fee is how we are paid, and it is disclosed up front.
Is there a minimum to work with you?
We work with a range of clients and portfolio sizes. The clearest way to find out whether we are a fit for your situation is a complimentary conversation, where we can talk through your assets and your needs.
Does the custodian pay you or charge me separately?
Your assets are held at an independent custodian, Charles Schwab, which is separate from our firm. We receive no compensation from the custodian. Our only compensation is the management fee you pay us.
Where is my money held?
Your assets and securities are held by an independent custodian, Charles Schwab, in an account in your name. The custodian is separate from our firm, so you have an independent, third-party record of your holdings.
Does Davidson Capital Management hold my assets?
No. We manage your portfolio, but your assets are held by an independent custodian, Charles Schwab, not by our firm. We are never in possession of your funds.
Can I view my account directly with the custodian?
Yes. Through Schwab Alliance you can see daily portfolio valuations and custodian statements directly with Charles Schwab, in addition to the reporting we provide.
How often will I receive reports?
You have daily online access to your account through your private client website, your custodian sends statements monthly, and we provide a full investment performance report each quarter.
What is included in the quarterly report?
Each quarterly report includes your performance for the quarter and year to date, a portfolio summary, fixed income statistics, realized and unrealized gains and losses, a transaction summary, and our market commentary.
How do I log in to my account?
You can reach your account through the Client Login page on our website, which links to your Davidson Client Reports portal and to Schwab Alliance. The two have separate login details, and first-time setup help is on that page.
