GREATDANE INVESTMENT LLC
3403 – 45th Street
Moline, IL 61265
Phone: (309) 235-7473
www.greatdaneinvestment.com
FORM ADV PART 2A – DISCLOSURE BROCHURE
EFFECTIVE: MARCH 9, 2021
This Form ADV Part 2A (“Disclosure Brochure”) provides information about the qualifications and business practices of GREATDANE INVESTMENT LLC (“GREATDANE” or the “Advisor”). If you have any questions about the content of this Disclosure Brochure, please contact the Advisor at (309) 235-7473.
GREATDANE INVESTMENT LLC is a registered investment advisor with the Illinois Securities Department. The information in this Disclosure Brochure has not been approved or verified by the Illinois Securities Department or by any state securities authority. Registration of an investment advisor does not imply any specific level of skill or training. This Disclosure Brochure provides information about GREATDANE INVESTMENT LLC to assist you in determining whether to retain the Advisor. Additional information about GREATDANE INVESTMENT LLC and its Advisory Persons is available on the SEC’s website at www.adviserinfo.sec.gov by searching for the Advisor’s name or CRD# 4167814.
Item 2 – Material Changes
Form ADV 2 is divided into two parts: Part 2A (the "Disclosure Brochure") and Part 2B (the "Brochure Supplement"). The Disclosure Brochure provides information about a variety of topics relating to an Advisor’s business practices and conflicts of interest. The Brochure Supplement provides information about Advisory Persons of GREATDANE INVESTMENT LLC. For convenience, the Advisor has combined these documents into a single disclosure document. GREATDANE INVESTMENT LLC believes that communication and transparency are the foundation of its relationship with clients and will continually strive to provide you with complete and accurate information at all times. GREATDANE INVESTMENT LLC encourages all current and prospective clients to read this Disclosure Brochure and discuss any questions you may have with the Advisor.
Material Changes
There are no material changes to this Disclosure Brochure.
Future Changes
From time to time, the Advisor may amend this Disclosure Brochure to reflect changes in business practices, changes in regulations or routine annual updates as required by securities regulators. This complete Disclosure Brochure or a Summary of Material Changes shall be provided to you annually and if a material change occurs. At any time, you may view the current Disclosure Brochure on-line at the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching for the Advisor’s name or CRD# 4167814. You may also request a copy of this Disclosure Brochure at any time, by contacting the Advisor at (309) 235-7473.
Item 3 – Table of Contents
Item 1 – Cover Page
Item 2 – Material Changes
Item 3 – Table of Contents
Item 4 – Advisory Services
Firm Information
Advisory Services Offered
Client Account Management
Wrap Fee Programs
Assets Under Management
Item 5 – Fees and Compensation
Fees for Advisory Services
Fee Billing
Other Fees and Expenses
Advance Payment of Fees and Termination
Compensation for Sales of Securities
Item 6 – Performance-Based Fees and Side-By-Side Management
Item 7 – Types of Clients
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss
Methods of Analysis
Risk of Loss
Item 9 – Disciplinary Information
Item 10 – Other Financial Industry Activities and Affiliations
Item 11 – Code of Ethics
Code of Ethics
Personal Trading with Material Interest
Personal Trading in Same Securities as Clients
Personal Trading at Same Time as Client
Item 12 – Brokerage Practices
Recommendation of Custodian[s]
Brokering Referrals
Directed Brokerage
Aggregating and Allocating Trades
Item 13 – Review of Accounts
Frequency of Reviews
Causes for Reviews
Review Reports
Item 14 – Client Referrals and Other Compensation
Compensation Received by GREATDANE
Client Referrals from Solicitors
Item 15 – Custody
Item 16 – Investment Discretion
Item 17 – Voting Client Securities
Item 18 – Financial Information
Item 19 – Additional Requirements for State Registered Advisors
Form ADV 2B – Brochure Supplements
Item 2 – Educational Background, Business Experience, Licenses
Item 3 – Disciplinary Information
Item 4 – Other Business Activities
Item 5 – Additional Compensation
Item 6 – Supervision
Item 7 - Additional Disclosure Events Required for State Registered Firms
Privacy Policy
Item 4 – Advisory Services
Firm Information
GREATDANE INVESTMENT LLC (“GREATDANE” or the “Adviser”) is a registered investment advisor with the Illinois Securities Department. The Adviser was organized as a Limited Liability Company (“LLC”) under the laws of the State of Illinois on March 1, 2021. GREATDANE INVESTMENT LLC is owned and operated by Todd R. Potter, Managing Principal and Chief Compliance Officer. The firm will begin investment advisory for clients upon licensing by the State of Illinois.
This Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory services provided by GREATDANE INVESTMENT LLC. For information regarding this Disclosure Brochure, please contact Todd R. Potter, Managing Principal at (309) 235-7473.
Advisory Services Offered
GREATDANE INVESTMENT LLC offers investment advisory services to individuals, high net worth individuals, trusts, and estates, (each referred to as a “Client”). GREATDANE INVESTMENT LLC provides individualized services to each Client, which are determined during initial conversations and updated over the course of the relationship as needed or requested by the Client. Customized solutions for the Client are achieved through continuous personal contact and interaction while providing discretionary and non-discretionary investment management services. GREATDANE INVESTMENT LLC serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary, the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential conflicts of interest. GREATDANE INVESTMENT LLC’s fiduciary commitment is further described in the Advisor’s Code of Ethics. For more information regarding the Code of Ethics, please see Item 11 – Code of Ethics.
GREATDANE INVESTMENT LLC works closely with each Client to identify their investment goals and objectives as well as risk tolerance and financial situation in order to create a portfolio strategy. GREATDANE INVESTMENT LLC will then construct a portfolio, consisting of primarily exchange-traded funds (“ETFs”), mutual funds, individual equity securities, and individual fixed income securities. The Advisor may also utilize options and other types of investments, as appropriate, to meet the needs of each Client. The Advisor may retain certain legacy investments based on portfolio fit and/or tax considerations. The Client-specific investment objectives will be set forth in a written Investment Policy Statement describing items such as asset allocation, personal circumstances, goals, liquidity needs, etc. Each Client will have the opportunity to place reasonable restrictions on the types of investments to be held in their respective portfolio, subject to acceptance by the Advisor. GREATDANE INVESTMENT LLC will construct, implement and monitor the portfolio on a discretionary basis with respect to the Client’s investment policy statement. At no time will GREATDANE INVESTMENT LLC accept or maintain custody of a Client’s funds or securities, except for the limited authority as outlined in Item 15 – Custody. All Client assets will be managed within their designated account[s] at the Custodian, pursuant to the terms of the advisory agreement.
Client Account Management
Prior to engaging GREATDANE INVESTMENT LLC to provide investment advisory services, each Client is required to enter into one or more agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor and the Client. These services may include:
Establishing an Investment Strategy – GREATDANE INVESTMENT LLC, in connection with the Client, will develop an investment strategy that seeks to achieve the Client’s goals and objectives.
Portfolio Construction – GREATDANE INVESTMENT LLC will develop a portfolio for the Client that is intended to meet the stated goals and objectives of the Client.
Investment Management and Supervision – GREATDANE INVESTMENT LLC will provide investment management and ongoing oversight of the Client’s investment portfolio. GREATDANE INVESTMENT LLC will review Client portfolios at least quarterly.
Wrap Fee Programs
GREATDANE INVESTMENT LLC does not manage or place Client assets into a wrap fee program.
Assets Under Management
GREATDANE INVESTMENT LLC currently has $0.00 assets under management.
Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more written agreements with the Advisor.
Fees for Advisory Services
Investment advisory fees are paid monthly, at the end of each month, at annual rate ranging from 0.25% to 1.75%, pursuant to the terms of the investment advisory agreement. Investment advisory fees are based on the average daily market value of assets under management during the month. Fees are based on several factors: including the level of assets to be managed, the scope and complexity of the Client engagement and the overall relationship. The investment advisory fee in the first month of service prorated from the inception date of the account[s] to the end of the first month. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into consideration the aggregate assets under management with Advisor. All securities held in accounts managed by GREATDANE INVESTMENT LLC will be independently valued by the Custodian. GREATDANE INVESTMENT LLC will not have the authority or responsibility to value portfolio securities. The Client may make additions or withdrawals from the account[s] at any time, subject to the Advisor’s right to terminate an account. Additions may be in cash or securities provided that the Advisor reserves the right to liquidate any transferred securities or decline to accept particular securities into a Client’s account[s]. Clients may withdraw account assets on notice to GREATDANE INVESTMENT LLC, subject to the usual and customary securities settlement procedures. However, withdrawals from the Client's account[s] may impede the Advisor's ability to implement the investment strategy designed for the Client. Clients are advised that when such securities are liquidated, they may be subject to securities transaction fees, short-term redemption fees, and/or tax ramifications. The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and other related costs and expenses described in Item 5, which may be incurred by the Client. However, the Advisor shall not receive any portion of these commissions, fees, and costs.
Fee Billing
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the Client’s account[s] at the end of each month. The amount due is calculated by applying the monthly rate to the average daily market value of assets under management during the month. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory fee. It is the responsibility of the Client to verify the accuracy of these fees as listed on the Custodian’s brokerage statement as the Custodian does not assume this responsibility. Clients provide written authorization permitting GREATDANE INVESTMENT LLC to be paid directly from their account[s] held by the Custodian as part of the investment advisory agreement and separate account forms provided by the Custodian.
Other Fees and Expense
Clients may incur certain fees or charges imposed by third parties, other than GREATDANE INVESTMENT LLC, in connection with investments made on behalf of the Client’s account[s], if applicable. The Client is responsible for all securities execution and custody fees charged by the Custodian, if applicable. The Advisor's recommended Custodian does not charge securities transaction fees for ETF and equity trades in Client accounts, provided that the Client’s accounts meet the terms and conditions of the Custodians brokerage requirements. However the Custodian typically charges for mutual funds and other types of investments. All fees paid to GREATDANE INVESTMENT LLC for investment advisory are separate and distinct from any and all other fees and expenses charged by broker-dealers/custodians, plan administrators, or any other expense associated with the Client’s accounts. Investments in mutual funds and ETFs also have an internal expense ratio charged by the product. These fees are described in each mutual fund or ETF prospectus. Please refer to Item 12 – Brokerage Practices for additional information.
Advance Payment of Fees and Termination
GREATDANE INVESTMENT LLC is compensated for its services at the end of the month after investment management services are rendered. Either party may terminate the investment advisory agreement, at any time, by providing advance written notice to the other party. The Client may also terminate the investment advisory agreement within five (5) business days of signing the Advisor’s agreement at no cost to the Client. After the five-day period, the Client will incur charges for bona fide advisory services rendered to the point of termination and such fees will be due and payable by the Client. The Client’s investment advisory agreement with the Advisor is non-transferable without the Client’s prior consent.
Compensation for Sales of Securities
GREATDANE INVESTMENT LLC does not buy or sell securities and does not receive any compensation for securities transactions in any Client account, other than the investment advisory fees noted above.
Item 6 – Performance-Based Fees and Side-By-Side Management
GREATDANE INVESTMENT LLC does not charge performance-based fees for its investment advisory services. The fees charged by GREATDANE INVESTMENT LLC are as described in Item 5 above and are not based upon the capital appreciation of the funds or securities held by any Client. GREATDANE INVESTMENT LLC does not manage any proprietary investment funds or limited partnerships (for example, a mutual fund or a hedge fund) and has no financial incentive to recommend any particular investment options to its Clients.
Item 7 – Types of Clients
GREATDANE INVESTMENT LLC offers investment advisory services to individuals, high net worth individuals, trusts, estates, charitable organizations and businesses. The amount of each type of Client is available on GREATDANE INVESTMENT LLC Form ADV Part 1A. These amounts may change over time and are updated at least annually by the Advisor. GREATDANE INVESTMENT LLC generally does not impose a minimum size for establishing a relationship.
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss
Methods of Analysis
Investing in securities involves risk of loss that clients should be prepared to bear. Past performance is not a guarantee of future returns. The methods of analysis, tools and strategies utilized by GREATDANE INVESTMENT LLC may include any of the following:
Fundamental Analysis
Involves evaluating a security using real data such as company revenues, earnings, return on equity, and profit margins to determine underlying value and potential growth. Fundamental analysis may involve interest rate risk, market risk, business risk, and financial risk.
Cyclical Analysis
Involves analyzing the cycles of the market. Cyclical analysis may involve inflation risk, market risk, and currency risk.
Behavioral Finance
Proposes psychology-based theories to explain stock market anomalies. It assumes the information structure and the characteristics of market participants systematically influence the investment decisions of individuals as well as the market outcomes.
Asset Allocation
Is an investment strategy used to balance risk and return according to a client’s investment objective, risk tolerance and investment horizon. It is used to manage portfolio volatility by investment in different asset classes.
Diversification
Is a risk management strategy used to reduce the volatility of a portfolio by investing in different asset classes, different market sectors, and/or different companies.
Risk of Loss
Investing in securities involves certain investment risks. Securities may fluctuate in value or lose value. Clients should be prepared to bear the potential risk of loss. GREATDANE INVESTMENT LLC will assist Clients in determining an appropriate strategy based on their tolerance for risk and other factors noted above. However, there is no guarantee that a Client will meet their investment goals. While the methods of analysis help the Advisor in evaluating a potential investment, it does not guarantee that the investment will increase in value. Assets meeting the investment criteria utilized in these methods of analysis may lose value and may have negative investment performance. Each Client engagement will entail a review of the Client's investment goals, financial situation, time horizon, tolerance for risk and other factors to develop an appropriate strategy for managing a Client's account. Client participation in this process, including full and accurate disclosure of requested information, is essential for the analysis of a Client's account[s]. The Advisor shall rely on financial and other information provided by the Client or their designees without the duty or obligation to validate the accuracy and completeness of the provided information. It is the responsibility of the Client to inform the Advisor of any changes in financial condition, goals or other factors that may affect this analysis. The risks associated with a particular strategy are provided to each Client in advance of investing Client accounts. The Advisor will work with each Client to determine their tolerance for risk as part of the portfolio construction process. Following are some of the risks associated with the Advisor’s investment strategies:
Market Risks
The value of a Client’s holdings may fluctuate in response to events specific to companies or markets, as well as economic, political, or social events in the U.S. and abroad. This risk is linked to the performance of the overall financial markets.
ETF Risks
The performance of ETFs is subject to market risk, including the possible loss of principal. The price of the ETFs will fluctuate with the price of the underlying securities that make up the funds. In addition, ETFs have a trading risk based on the loss of cost efficiency if the ETFs are traded actively and a liquidity risk if the ETFs have a large bid-ask spread and low trading volume. The price of an ETF fluctuates based upon the market movements and may dissociate from the index being tracked by the ETF or the price of the underlying investments. An ETF purchased or sold at one point in the day may have a different price than the same ETF purchased or sold a short time later.
Mutual Fund Risks
The performance of mutual funds is subject to market risk, including the possible loss of principal. The price of the mutual funds will fluctuate with the value of the underlying securities that make up the funds. The price of a mutual fund is typically set daily therefore a mutual fund purchased at one point in the day will typically have the same price as a mutual fund purchased later that same day.
Options Contracts
Investments in options contracts have the risk of losing value in a relatively short period of time. Option contracts are leveraged instruments that allow the holder of a single contract to control many shares of an underlying stock. This leverage can compound gains or losses.
Past performance is not a guarantee of future returns. Investing in securities and other investments involve a risk of loss that each Client should understand and be willing to bear. Clients are reminded to discuss these risks with the Advisor.
Item 9 – Disciplinary Information
There are no legal, regulatory or disciplinary events involving GREATDANE INVESTMENT LLC or any of its management or advisors. GREATDANE INVESTMENT LLC values the trust Clients place in the Advisor. The Advisor encourages Clients to perform the requisite due diligence on any advisor or service provider that the Client engages. The backgrounds of the Advisor and Advisory Persons are available on the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with the Advisor’s firm name or CRD# 4167814.
Item 10 – Other Financial Industry Activities and Affiliations
The sole business of GREATDANE INVESTMENT LLC and its Advisory Persons is to provide investment advisory services to its Clients. Neither GREATDANE INVESTMENT LLC nor its Advisory Persons are involved in other business endeavors. GREATDANE INVESTMENT LLC does not maintain any affiliations with other firms, other than contracted service providers to assist with the servicing of its Client’s accounts.
Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
Code of Ethics
GREATDANE INVESTMENT LLC has implemented a Code of Ethics (the “Code”) that defines the Advisor’s fiduciary commitment to each Client. This Code applies to all persons associated with GREATDANE INVESTMENT LLC (“Supervised Persons”). The Code was developed to provide general ethical guidelines and specific instructions regarding the Advisor’s duties to each Client. GREATDANE INVESTMENT LLC and its Supervised Persons owe a duty of loyalty, fairness and good faith towards each Client. It is the obligation of GREATDANE INVESTMENT LLC’s Supervised Persons to adhere not only to the specific provisions of the Code, but also to the general principles that guide the Code. The Code covers a range of topics that address employee ethics and conflicts of interest. To request a copy of the Code, please contact the Advisor at (309) 235-7473.
Personal Trading with Material Interest
GREATDANE INVESTMENT LLC allows Supervised Persons to purchase or sell the same securities that may be recommended to and purchased on behalf of Clients. GREATDANE INVESTMENT LLC does not act as principal in any transactions. In addition, the Advisor does not act as the general partner of a fund, or advise an investment company. GREATDANE INVESTMENT LLC does not have a material interest in any securities traded in Client accounts.
Personal Trading in Same Securities as Clients
GREATDANE INVESTMENT LLC allows Supervised Persons to purchase or sell the same securities that may be recommended to and purchased on behalf of Clients. Owning the same securities recommended (purchase or sell) to Clients presents a conflict of interest that, as fiduciaries, must be disclosed to Clients and mitigated through policies and procedures. As noted above, the Advisor has adopted the Code to address insider trading (material non-public information controls); gifts and entertainment; outside business activities and personal securities reporting. When trading for personal accounts, Supervised Persons have a conflict of interest if trading in the same securities. The fiduciary duty to act in the best interest of its Clients can be violated if personal trades are made with more advantageous terms than Client trades, or by trading based on material non-public information. This risk is mitigated by GREATDANE INVESTMENT LLC requiring reporting of personal securities trades by its Supervised Persons for review by the Chief Compliance Officer (“CCO”). The Advisor has also adopted written policies and procedures to detect the misuse of material, non-public information.
Personal Trading at Same Time as Client
While GREATDANE INVESTMENT LLC allows Supervised Persons to purchase or sell the same securities that may be recommended to and purchased on behalf of Clients, such trades are typically aggregated with Client orders or traded afterwards. At no time will GREATDANE INVESTMENT LLC, or any Supervised Person of GREATDANE INVESTMENT LLC, transact in any security to the detriment of any Client.
Item 12 – Brokerage Practices
Recommendation of Custodian[s]
GREATDANE INVESTMENT LLC does not have discretionary authority to select the broker-dealer custodian for custody and execution services. The Client will engage the broker-dealer/custodian (herein the "Custodian") to safeguard Client assets and authorize GREATDANE INVESTMENT LLC to direct trades to the Custodian as agreed upon in the investment advisory agreement. Further, GREATDANE INVESTMENT LLC does not have the discretionary authority to negotiate commissions on behalf of Clients on a trade-by-trade basis. Where GREATDANE INVESTMENT LLC does not exercise discretion over the selection of the Custodian, it may recommend the Custodian to Clients. Clients are not obligated to use the Custodian recommended by the Advisor and will not incur any extra fee or cost associated with using a broker-dealer/custodian not recommended by GREATDANE INVESTMENT LLC. However, if the recommended Custodian is not utilized the Advisor may be limited in the services it can provide to the Client comparable to other Clients. GREATDANE INVESTMENT LLC may recommend the Custodian based on criteria such as, but not limited to, reasonableness of commissions charged to the Client, services made available to the Client, its reputation, and/or location of the Custodian’s offices. GREATDANE INVESTMENT LLC will generally recommend that Clients establish their account[s] at Apex Clearing & Custody and related entities of Apex Fintech Solutions LLC (collectively “Apex”). Apex is registered with the SEC, and members of FINRA and SIPC and will serve as the Client’s “qualified custodian”.
Following are additional details regarding the brokerage practices of the Advisor:
Soft Dollars
Soft dollars are revenue programs offered by broker-dealers/custodians whereby an advisor enters into an agreement to place security trades with the broker-dealer/custodian in exchange for research and other services.
GREATDANE INVESTMENT LLC does not participate in soft dollar programs sponsored or offered by any broker-dealer/custodian.
Brokerage Referrals
GREATDANE INVESTMENT LLC does not receive any compensation from any third party in connection with the recommendation for establishing an account.
Directed Brokerage
All Clients are serviced on a “directed brokerage basis”, where GREATDANE INVESTMENT LLC will place trades within the established account[s] at the Custodian designated by the Client. Further, all Client accounts are traded within their respective account[s], unless separately instructed by the Client. The Advisor will not engage in any principal transactions (i.e., trade of any security from or to the Advisor’s own account) or cross transactions with other Client accounts (i.e., purchase of a security into one Client account from another Client’s account[s]). GREATDANE INVESTMENT LLC will not be obligated to select competitive bids on securities transactions and does not have an obligation to seek the lowest available transaction costs. These costs are determined by the Custodian.
Aggregating and Allocating Trades
The primary objective in placing orders for the purchase and sale of securities for Client accounts is to obtain the most favorable net results considering such factors as: price, size of the order, difficulty of execution, confidentiality and skill required of the Custodian. GREATDANE INVESTMENT LLC will execute its transactions through the Custodian as authorized by the Client.
Item 13 – Review of Accounts
Frequency of Reviews
Securities in Client accounts are monitored on a regular and continuous basis by Advisory Persons of GREATDANE INVESTMENT LLC and by the CCO. Formal reviews are generally conducted at least quarterly or more frequently depending on the needs of the Client.
Causes for Reviews
Accounts may be reviewed as a result of major changes in economic conditions, known changes in the Client’s financial situation, and/or large deposits or withdrawals in the Client’s account[s]. The Client is encouraged to notify GREATDANE INVESTMENT LLC if changes occur in the Client’s personal financial situation that might adversely affect the Client’s investment plan. Additional reviews may be triggered by material market, economic or political events.
Review Reports
The Client will receive brokerage statements no less than quarterly from the Custodian. These brokerage statements are sent directly from the Custodian to the Client. The Client may also establish electronic access to the Custodian’s website so that the Client may view these reports and their account activity. Client brokerage statements will include all positions, transactions and fees relating to the Client’s account[s]. The Advisor may also provide Clients with periodic reports regarding their holdings, allocations, and performance.
Item 14 - Client Referrals and Other Compensation
Compensation received by GREATDANE INVESTMENT LLC
GREATDANE INVESTMENT LLC is a fee-only advisory firm that is compensated solely by its Clients and not from any investment product. GREATDANE INVESTMENT LLC does not receive commissions from product sponsors or broker-dealers. GREATDANE INVESTMENT LLC may refer Clients to various unaffiliated professionals (e.g. attorneys, accountants, estate planners) to provide certain financial services necessary to meet the goals of its Clients. Likewise, GREATDANE INVESTMENT LLC may receive non-compensated referrals of new Clients from various third-parties.
Participation in Institutional Advisor Platform
GREATDANE INVESTMENT LLC does not participate in any custodial institutional advisor platform.
Client Referrals from Solicitors
GREATDANE INVESTMENT LLC does not engage paid solicitors for Client referrals.
Item 15 – Custody
GREATDANE INVESTMENT LLC does not accept or maintain custody of any Client accounts, except for the authorized deduction of the Advisor’s fees and certain money movement authority as described below. All Clients must place their assets with a “qualified custodian”. Clients are required to engage the Custodian to retain their funds and securities and direct GREATDANE INVESTMENT LLC to utilize that Custodian for the Client’s security transactions. Clients should review statements provided by the Custodian and compare to any reports provided by GREATDANE INVESTMENT LLC to ensure accuracy, as the Custodian does not perform this review. For more information about custodians and brokerage practices, see Item 12 – Brokerage Practices. If the Client gives the Advisor authority to move money from one account to another account, the Advisor may have custody of those assets. In order to avoid additional regulatory requirements, the Custodian and the Advisor have adopted safeguards to ensure that the money movements are completed in accordance with the Client’s instructions.
Item 16 – Investment Discretion
GREATDANE INVESTMENT LLC has discretion over the selection and amount of securities to be bought or sold in Client accounts without obtaining prior consent or approval from the Client. However, these purchases or sales may be subject to specified investment objectives, guidelines, or limitations previously set forth by the Client and agreed to by GREATDANE INVESTMENT LLC. Discretionary authority will only be authorized upon full disclosure to the Client. The granting of such authority will be evidenced by the Client's execution of an investment advisory agreement containing all applicable limitations to such authority. All discretionary trades made by GREATDANE INVESTMENT LLC will be in accordance with each Client's investment objectives and goals. GREATDANE INVESTMENT LLC may manage accounts on a non-discretionary basis. In these instances, GREATDANE INVESTMENT LLC provides recommendations to Clients and if recommendations are approved, GREATDANE INVESTMENT LLC will implement in accordance with the Client’s instructions.
Item 17 – Voting Client Securities
GREATDANE INVESTMENT LLC does not accept proxy-voting responsibility for any Client. Clients will receive proxy statements directly from the Custodian. If the Client elects to direct proxies to the Advisor, such election does not result in the authority for the Advisor to vote such proxies. The Advisor will assist in answering questions relating to proxies, however, the Client retains the sole responsibility for proxy decisions and voting.
Item 18 – Financial Information
Neither GREATDANE INVESTMENT LLC, nor its management, have any adverse financial situations that would reasonably impair the ability of GREATDANE INVESTMENT LLC to meet all obligations to its Clients. Neither GREATDANE INVESTMENT LLC, nor any of its advisory persons, has been subject to a bankruptcy or financial compromise. GREATDANE INVESTMENT LLC is not required to deliver a balance sheet along with this Disclosure Brochure as the Advisor does not collect fees of $1,200 or more for services to be performed six months or more in advance.
Item 19 – Additional Requirements for State Registered Advisors
Todd R. Potter, Managing Principal
Attended:
Southern Illinois University, majoring in Economics.
Western Illinois University, majoring in Business Management.
Series 7 licensed Registered Representative since June 21, 2000.
Series 66 licensed Investment Adviser Representative since June 28, 2000.
SIE, examination October 1, 2018.
I do not engage in any other business activity (other than giving investment advice).
GREATDANE INVESTMENT LLC
FORM ADV PART 2B – BROCHURE SUPPLEMENT
EFFECTIVE: MARCH 9, 2021
Form ADV Part 2B – Brochure Supplement for Todd R. Potter, Managing Member and Chief Compliance Officer.
This Form ADV 2B (“Brochure Supplement”) provides information about the background and qualifications of Todd R. Potter (CRD# 4167814) in addition to the information contained in the GREATDANE INVESTMENT LLC Disclosure Brochure. If you have not received a copy of the Disclosure Brochure or if you have any questions about the contents of the GREATDANE INVESTMENT LLC Disclosure Brochure or this Brochure Supplement, please contact the Advisor at (309) 235-7473.
Additional information about Mr. Potter is available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with his full name or his Individual CRD# 4167814.
Item 2 – Educational Background, Business Experience, Licenses
Todd R. Potter, born in 1961, is dedicated to advising Clients of GREATDANE INVESTMENT LLC as Managing Member. Mr. Potter studied Economics at Southern Illinois University, Carbondale, Illinois and Business Management at Western Illinois University, Macomb, Illinois. Additionally, Mr. Potter earned the Robert W. Baird Investment Consulting certificate at the University of Chicago, Booth School of Business.
Employment History
GREATDANE INVESTMNET LLC
Managing Principal & Chief Compliance Officer
04/2022 to Present
WESTERN INTERNATIONAL SECURITIES, INC
Vice President, Financial Advisor
12/2006 to 04/2022
MORGAN STANLEY
Vice President, Financial Advisor
08/2005 to 12/2006
ROBERT W. BAIRD & COMPANY
Vice President, Financial Advisor
03/2000 to 08/2005
CHICAGO MERCANTILE EXCHANGE
Member, Floor Trader
02/1990 to 03/2000
Professional Licenses
Series 66, FINRA, Uniform Combined State Law Examination
06/28/2000
Series 7, FINRA, General Securities Representative Examination
06/21/2000
SIE, Securities Industry Essentials Examination
10/01/2018
Item 3 – Disciplinary Information
There are no civil or disciplinary events to disclose regarding Mr. Potter. Mr. Potter has never been involved in any regulatory or civil action. There have been no client complaints, lawsuits, arbitration claims or administrative proceedings against Mr. Potter. Securities laws require an advisor to disclose any instances where the advisor or its advisory persons have been found liable in a legal, regulatory, civil or arbitration matters that alleges violation of securities and other statutes; fraud; false statements or omissions; theft, embezzlement or wrongful taking of property; bribery, forgery, counterfeiting, or extortion; and/or dishonest, unfair or unethical practices.
Item 4 – Other Business Activities
None
Item 5 – Additional Compensation
Mr. Potter is dedicated to the investment advisory activities of GREATDANE INVESTMENT LLC’s Clients. Mr. Potter does not receive any additional forms of compensation.
Item 6 – Supervision
Mr. Potter serves as Managing Member and Chief Compliance Officer of GREATDANE INVESTMENT LLC. Mr. Potter can be reached at (309) 235-7473. GREATDANE INVESTMENT LLC has implemented a Code of Ethics, an internal compliance document that guides each Supervised Person in meeting their fiduciary obligations to Clients of GREATDANE INVESTMENT LLC. Further, GREATDANE INVESTMENT LLC is subject to regulatory oversight by various agencies. These agencies require registration by GREATDANE INVESTMENT LLC and its Supervised Persons. As a registered entity, GREATDANE INVESTMENT LLC is subject to examinations by regulators, which may be announced or unannounced. GREATDANE INVESTMENT LLC is required to periodically update the information provided to these agencies and to provide various reports regarding the business activities and assets of the Advisor.
Item 7 – Additional disclosure events required for state registered firms
Mr. Potter was charged with a misdemeanor in college that alleged the lack of the timely return of a rented tuxedo. After an apology for the oversight and return of the garment the charge was dropped and dismissed amicably resolving the matter.
PRIVACY POLICY
EFFECTIVE: MARCH 9, 2021
Our Commitment to You
GREATDANE INVESTMENT LLC (“GREATDANE” or the “Advisor”) is committed to safeguarding the use of personal information of our Clients (also referred to as “you” and “your”) that we obtain as your Investment Advisor, as described here in our Privacy Policy (“Policy”). Our relationship with you is our most important asset. We understand that you have entrusted us with your private information, and we do everything that we can to maintain that trust. GREATDANE INVESTMENT LLC (also referred to as "we", "our" and "us”) protects the security and confidentiality of the personal information we have and implements controls to ensure that such information is used for proper business purposes in connection with the management or servicing of our relationship with you. GREATDANE INVESTMENT LLC does not sell your non-public personal information to anyone. Nor do we provide such information to others except for discrete and reasonable business purposes in connection with the servicing and management of our relationship with you, as discussed below. Details of our approach to privacy and how your personal non-public information is collected and used are set forth in this Policy.
Why you need to know?
Registered Investment Advisors (“RIAs”) must share some of your personal information in the course of servicing your account. Federal and State laws give you the right to limit some of this sharing and require RIAs to disclose how we collect, share, and protect your personal information.
What information do we collect from you?
Social security or taxpayer identification number
Assets and liabilities
Name, address and phone number[s]
Income and expenses
E-mail address[es]
Investment activity
Account information (including other institutions)
Investment experience and goals
What Information do we collect from other sources?
Custody, brokerage and advisory agreements
Account applications and forms
Other advisory agreements and legal documents
Investment questionnaires and suitability documents
Transactional information with us or others
Other information needed to service account
How do we protect your information?
To safeguard your personal information from unauthorized access and use we maintain physical, procedural and electronic security measures. These include such safeguards as secure passwords, encrypted file storage and a secure office environment. Our technology vendors provide security and access control over personal information and have policies over the transmission of data. We train present and future associates on their responsibilities to protect Client’s personal information. We require third parties that assist in providing our services to you to protect the personal information they receive from us.
How do we share your information?
An RIA shares Client personal information to effectively implement its services. In the section below, we list some reasons we may share your personal information.
BASIS FOR SHARING DO WE SHARE? CAN YOU LIMIT?
Servicing our Clients Yes No
We may share non-public personal information
with non-affiliated third parties (such as administrators,
broker-dealers, custodians, regulators, credit agencies,
other financial institutions) as necessary for us to provide
agreed upon services to you, consistent with applicable
law, including but not limited to: processing transactions;
general account maintenance; responding to regulators
or legal investigations; and credit reporting.
Marketing Purposes No Not Shared
GREATDANE INVESTMENT LLC does not disclose, and does
not intend to disclose, personal information with non-
affiliated third parties to offer you services. Certain laws
may give us the right to share your personal information
with financial institutions where you are a customer and
where GREATDANE INVESTMENT LLC or the Client has a
formal agreement with the financial institution.
We will only share information for purposes of servicing
your accounts, not for marketing purposes.
Authorized Users Yes Yes
Your non-public personal information may be disclosed to
you and persons that we believe to be your authorized
agent[s] or representative[s].
Information About Former Clients No Not Shared
GREATDANE INVESTMENT LLC does not disclose and does
not intend to disclose, non-public personal information to
non-affiliated third parties with respect to persons who are
no longer our Clients.
Changes to our Privacy
Policy We will send you a copy of this Policy annually for as long as you maintain an ongoing relationship with us. Periodically we may revise this Policy, and will provide you with a revised Policy if the changes materially alter the previous Privacy Policy. We will not, however, revise our Privacy Policy to permit the sharing of non-public personal information other than as described in this notice unless we first notify you and provide you with an opportunity to prevent the information sharing.
Any Questions?
You may ask questions or voice any concerns, as well as obtain a copy of our current Privacy Policy by contacting us at (309) 235-7473.