This brochure provides information about the qualifications and business practices of Altair Investment Management. If you have any questions about the contents of this brochure, please contact us at 210-380-4412 or firstname.lastname@example.org. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Registration with the SEC or state regulatory authority does not imply a certain level of skill or expertise. Additional information about Altair Investment Management also is available on the SEC’s website at www.adviserinfo.sec.gov.
Item 2 – Material Changes This Firm Brochure provides disclosures prepared according to regulatory requirements and rules. Consistent with the rules, we will ensure that you receive a summary of any material changes to this and subsequent Brochures within 120 days of the close of the business fiscal year. Additionally, you will be provided with other interim disclosures about material changes as necessary. This brochure for Altair Investment Management contains the following revisions:
Updated the assets under management – Item 4D
Item 4 - Advisory Business A. Introduction Altair Investment Management (AIM), owned by Robert K. Loop, is an independent Registered Investment Advisor specializing in personalized portfolio management. This advisory firm is a newly registered investment advisor as of March 2021. Mr. Loop previously owned Altair Investment Management Company from 1995 to 2012; it closed while Mr. Loop was employed by USAA to avoid any conflicts of interest. AIM offers advice on the following: exchange-listed securities, securities listed over-the-counter, foreign issuers, warrants, corporate debt securities, certificates of deposit, municipal securities, investment company securities, U.S. government securities and option contracts on securities. Advisory services are tailored to the needs of each client, based upon their investing experience, financial goals and risk tolerance.
B. Types of Clients Generally, Altair provides investment advice for individuals, families and small businesses. The types of accounts managed include retirement, joint, custodial and individual. The minimum aggregate value for account management of related accounts is $25,000.
C. Types of Advisory Services Offered The following two types of portfolios are managed by AIM: -Growth Accounts - primarily invested in growth stocks and mutual funds without consideration given to dividend yield. -Growth and Income Accounts - primarily invested in growth stocks and mutual funds that have an above average dividend yield. A portion of the above-mentioned accounts typically will be in short-term cash reserves, the weighting of which will change based upon market conditions.
D. Client Assets Under Management As of December 31, 2021 the firm currently has approximately $2,440,000 of discretionary and $550,000 of non-discretionary client assets under management.
A. Investment Management Fees The fee for managed portfolios is based upon the total value of a client’s accounts and are negotiated based upon a variety of factors which include but are not limited to: the particular circumstances of the Client, specific investment strategies requested by the Client, overall Client relationship including longstanding members and household account sizes. The maximum annualized fees charged to AIM Clients are as follows: 0.88% on the first $100,000 0.78% on the next $200,000 0.68% on the next $700,000 0.58% on the next $2,000,000 0.48% on assets of above $3,000,000 Clients are billed quarterly at the start of each period beginning with the date the account is initially under management or the beginning of a calendar quarter. The quarterly fee is billed at one-fourth of the annual percentage rate based upon current market value. If AIM or a client terminates a contract prior to the end of a quarter, the client will be reimbursed for any unearned fees on a pro rata basis. AIM will occasionally provide research and consulting services to individuals; the non-negotiable fee for such services is $80 per hour. Clients may pay AIM directly by check, cash or wire transfer. Clients may also authorize the direct debit of fees from their accounts. For directly debited fees, the custodian’s periodic statements will show each fee deduction from the account. Clients may withdraw this authorization for direct billing of these fees at any time by notifying us or their custodian. Clients may incur brokerage transaction costs which are included in purchase or sale of securities. AIM receives no compensation from any brokerage and recommends only no-load mutual funds. Please see Item 10 – Brokerage Practices for more information.
B. Aggregation of Related Fee-Based Accounts Clients’ related fee-based accounts will be combined so that each account will pay a fee that is calculated on the basis of the total aggregate account values of all related accounts. Related accounts are accounts of an individual, his or her spouse, and their children under the age of 21, including individually owned accounts, individual IRAs, self-directed accounts under an employee benefit pension plan, and an ERISA in which an individual is the sole participant. Additionally, accounts of the same company or business entity will generally be deemed related.
Item 6- Method of Analysis, Investment Strategies and Risk of Loss A. Methods of Analysis and Investment Strategies Fundamental security analysis is utilized to determine which investments are best for each account. Sources of information include financial newspapers and magazines, inspections of corporate activities, research materials prepared by others, corporate rating services, annual reports, filings with the SEC, prospectuses and company press releases. Investment strategies include long-term purchases, short-term purchases, covered option writing and other option strategies, as appropriate based upon the client’s objectives and risk tolerance. Some of the risks included in fundamental security analysis, as with other investment strategies, are market downturns, inflation and volatility. B. Security-Specific Risks Investing in securities involves risk of loss that clients should be prepared to bear. Generally, the higher the potential reward an investment has, the higher its risk will be. Some of the kinds of risk include: Capital risk – the risk that an investor may lose all or part of the capital they have invested. Market risk – the risk that is inherent in any investment in the markets. Concentration risk – this is the risk inherent in portfolios heavily weighted in one security, industry, market sector or geographic region. Credit risk – the risk of default inherent in debt securities, such as corporate bonds. Interest rate risk - the risk that bond prices will fall as interest rates increase.
Each of these risks are analyzed before any investments are recommended.
Item 9 - Ethics, Participation or Interest in Client Transactions and Personal Trading AIM strives to comply with all applicable laws and regulations governing its practices. The goal is to protect client interests at all times and to demonstrate its commitment to its fiduciary duties of honesty, good faith and fair dealing with clients. AIM will send clients (prospective or current) a copy of its Code of Ethics upon request. From time to time, Mr. Loop may buy or sell securities that are recommended to his clients or securities in which AIM clients are invested. Potential conflicts of interest could occur if personal trades were transacted right before a client’s order (called front-running). This will be avoided by always giving AIM clients priority in the purchase or sale of securities. AIM will remain in compliance with the Insider Trading and Securities Fraud Enforcement Act of 1988.
Item 10 - Brokerage Practices Mr. Loop generally suggests a brokerage firm to clients in order to establish an account in which to effect transactions. Should a client request that a certain broker or firm be utilized, Mr. Loop will honor such a request if appropriate. Otherwise, the brokerage firms of Charles Schwab or TD Ameritrade (which has merged with Charles Schwab) will be utilized because they have low commission rates and a wide range of services. If there is a benefit to AIM clients to aggregate orders for the purchase or sale of a security for various client accounts, such as for lower brokerage commissions or better execution, then AIM will work with the clients’ broker to provide aggregate orders for clients. Commission rates and transaction costs are established by the Client’s independent custodian and/or broker-dealer. Based upon its own knowledge of the securities industry, AIM believes that commissions are competitive throughout the securities industry.
Item 11 - Review of Accounts Robert K. Loop, the firm’s sole proprietor and Investment Advisor Representative, will always review each portfolio at least once each month. Normally, each account will be reviewed weekly, and sometimes daily, depending upon the circumstances. Portfolio changes will be based upon the appropriateness of well-analyzed securities for each individual account. Consideration will be given to factors such as the safety and timeliness of each security and the overall diversification of each portfolio. No more than 80 accounts will be managed so that each client’s specific needs and objectives can be focused upon. Formal review letters will be sent to clients quarterly. Clients are urged to compare the account statements received from the qualified custodian to those received from AIM. Additional communications (oral and/or written) will take place throughout the period as necessary.
Item 13 - Custody Custody of all client accounts will be the responsibility of the brokerage at which the accounts are placed. Altair Investment Management does not take custody of client accounts.
Item 14 - Investment Discretion Mr. Loop’s advisory contracts may include discretionary authority in managing client accounts. In these accounts, Mr. Loop will make portfolio changes based upon his investment strategy and the client’s objectives without prior consultation. Nothing Mr. Loop shall do with regard to transactions in an account shall exceed the authority given him in a “trading authorization limited to purchases and sales” signed by the client and filed with the custodial institution carrying the client’s account.
Item 15 - Voting Client Securities Proxy voting will be provided for clients by Mr. Loop only if specifically authorized to do so in the Investment Advisory Agreement, Section 1. If authorized to provide proxy voting, Mr. Loop will always consult with the client and vote for what is understood to be in the best interest of the client. Clients may direct how Mr. Loop votes their proxies by discussing it with him and letting him know their preference. Clients may get information about how Mr. Loop voted their securities, and his proxy voting policies and procedures by simply requesting them.
Item 16 – Financial Information AIM does not have custody of their clients’ assets. AIM has not been subject to bankruptcy and sees no reason that its financial condition would be impaired in meeting its contractual obligations to its clients. AIM does not require prepayment of a fee more than six months in advance and in excess of $500, as services will be rendered within six months of payment.
Item 17 – Requirements for State-Registered Advisors Robert Loop AIM is registered with the state of Texas as a Registered Investment Adviser. AIM has one Investment Adviser Representative, Robert Kenneth Loop. Below is his education and business background: Born and raised in Texas, Mr. Loop graduated from Texas A&M University with a Bachelor of Science degree in Aerospace Engineering. After a year of graduate studies, Mr. Loop began employment at the Boeing Co. in Seattle in 1980. In 1982, he worked for Threshold Engineering Co. in San Antonio as an engineering consultant. Mr. Loop was employed as an engineer at Kelly AFB from December, 1983 until December, 1998. From August 2001 to June 2009, Mr. Loop worked as a secondary math teacher. He completed a Bachelor of Science degree in Computer Science through Texas State University in May 2012. From June 2012 to September 2020, Robert was an employee of USAA, first as a software developer, then as an actuarial analyst. An active volunteer in the community, Mr. Loop served as president of the Bulverde Athletic League in 1988 & 1989. He was elected to the Comal Independent School District Board of Trustees in 1995, and was re-elected unopposed in 1998, serving until 2001. Mr. Loop was elected Board Treasurer in 1996, 1997, 1999 and 2000. Mr. Loop has been a student of the stock market since 1979, when he began managing his own account. In February, 1991, he formed the Bulverde Investment Club, for which he provided the majority of the investment analysis and recommendations. After passing the Series 63 and Series 2 exams, he was first registered as an investment advisor in the state of Texas in April, 1995. He earned the Accredited Asset Management Specialist designation from the College for Financial Planning in 1997. Mr. Loop withdrew his registration as an investment advisor in May 2012 to avoid any conflicts of interest while working at USAA. He passed the Series 65 exam in January, 2021, as part of his effort to renew his registration. Mr. Loop does not receive any performance-based fees, has never been involved in any arbitration disputes, and has never been involved in any civil, self-regulatory or administrative proceedings. He has no relationship or arrangement with any issuer of securities.