Altus Capital Inc. (“Altus”) is a Cleveland-based investment management firm founded by John
Burns in 2001.
Altus Capital’s investment management philosophy is based upon a singular investment objective:
delivering a positive absolute rate of return over time. John has been an advisor to wealthy
individuals and their families since 1980, navigating through five recessions. Early in 2001, we
recognized that it was critically important to assess investment opportunities not only on a
fundamental basis, but on a technical basis as well. Over the years, we have spent a great deal of
time and resources honing our technical and trading skills. We believe that our understanding of the
technical side of the markets, as well as our trading backgrounds helps us to be better investors and
money managers.
Each and every client’s profile and investment objectives are unique. Our first step is an in-depth
confidential discussion with them about their current and future investment goals. Our purpose is to
understand their and their family's objectives and to construct a portfolio with the appropriate mix of
marketable securities, commodities and precious metals to achieve them. We work with each client
individually to create portfolios that are custom-fit to their unique circumstances.
In addition to traditional investment management services, Altus provides risk management
consulting services. Services include education about precious metals and other non-standard
investment vehicles, allocation of assets, security and other customized consulting services.
please register to get more info
Traditional Asset Management
Altus Capital Inc.'s fees have 2 components: a base fee and an incentive fee. The base fee is
calculated as a percentage of the market value of assets under management and payable quarterly
in advance. Management fees can be deducted from the clients account or billed to the client,
whichever they prefer. The base fee is equal to 1.25% of the first $20 million under management
and 1% for the balance over $20 million. The asset value upon which the fee is determined is
calculated using the most recent quarterly valuation reflecting market prices at the end of the
immediately preceding calendar quarter. The quarterly incentive fee is comprised of the following:
5% on any positive quarterly return plus 5% outperformance fee equal to the difference between the
account performance in excess of the S&P 500 performance. In any quarter that performance is
negative, no performance fee is payable until the subsequent quarter cumulative positive
performance of 2.5% (10% annually) or greater is achieved (after taking into account losses from
prior periods). Incentive fees are calculated and billed quarterly after the end of the quarter.
A client may terminate the investment advisory services at any time with no termination penalty
charge. Termination is effective upon oral notice to the applicant. Upon termination, any prepaid
base management fees shall be refundable on a pro rata basis. Any accrued performance fees will
be due and payable upon termination.
Client will be charged a custody fee which will be deducted directly from their account by the
custodian. The custody fee is equal to .07% of the market value of the assets and deducted from the
account monthly. Clients will also incur brokerage transaction costs associated with each trade. See
brokerage section of this brochure for additional information.
Risk Management Consulting Services
The fees for these services are customized to the services requested by the client. The following are
starting points depending on the services requested:
Precious Metals Purchase Program:
One-time fee equal to 5% of the precious metals acquired
Education materials
Risk management advice
Proposed allocation
Manage the acquisition process
Coordinate logistics
A la carte options available at an additional fee to be negotiated
Recommendation and implementation of sophisticated security systems including a variety of
safes
Advice on disposition strategies
Consulting Services:
One-time risk management consulting and education:
1.00% of portfolio asset value payable in advance
(fee applies to assets to be protected)
Ongoing consulting and education:
1.00% of portfolio asset value one-time fee payable in advance
0.125% of portfolio asset value quarterly fee
Non-Standard Risk Portfolio Management and Education:
Recurring management fee:
1.25% for the first quarter of management
0.25% for all subsequent quarters
Incentive fee:
5% of any positive annual return PLUS
5% “outperformance” fee equal to the difference between the account performance in excess of the
S&P performance
please register to get more info
Altus Capital Inc.'s traditional asset management and non-standard risk portfolio management has 2 fee
components: a base fee and an incentive fee. See Fees and Compensation section of this brochure for
additional information.
please register to get more info
Altus provides investment advisory services to a select group of high net worth individuals and their
families. In most cases, we manage multiple accounts for each individual including their trusts and
charitable foundations.
please register to get more info
Altus Capital’s investment approach is a unique quantitative strategy.
There are two primary approaches to security analysis – fundamental and technical. While many
investment managers view the two approaches as competing, Altus Capital contends that they
complement each other yielding a far stronger sense of the market. The common thread between
fundamental and technical analysis is the study of trends. Where technical analysis is the study of
trends in price and volume, fundamental analysis concentrates on corporate growth and valuation
trends.
In a positive (which we do not believe will occur in the foreseeable future) market we conduct
rigorous technical analysis to measure supply and demand for each company’s shares. Before we
buy, we want to see buying enthusiasm from institutional investors in the form of increased money
flows and positive price momentum. This helps us to enter positions as larger institutions
accumulate shares. We want to identify stocks in the accumulation phase and sell into strength as
larger institutions mark up price before distribution.
As an individual investor, you need an advantage to succeed in today's market. Altus Capital's
special opportunities have given our clients an advantage over the past several years. The special
opportunities are not ideas we get from Value Line or other publications. We add to our core
position when the investment is weak and we sell when it is fully valued. Generally, we buy and
hold but sometimes we trade around our core position.
Investing involves a risk of loss that you, as a client, should be prepared to bear.
please register to get more info
We have a written Policies and Procedures Manual that covers the following areas: Prohibited
purchases and sales, insider trading, personal securities transactions, exempted transactions,
prohibited activities, conflicts of interest, gifts and entertainment, confidentiality, service on a Board
of Directors, compliance procedures, compliance with laws and regulations, procedures and
reporting, certification of compliance, reporting violations, compliance officer duties, training and
education, record keeping, annual review, and sanctions. Clients may request a copy of our Policies
and Procedures Manual from management.
From time to time, representatives of Altus may buy or sell securities for themselves that they also
recommend to clients. This may provide an opportunity for representatives of Altus to buy or sell the
same securities before or after recommending the same securities to clients resulting in
representatives profiting off the recommendations they provide to clients. Altus will always document
any transactions that could be construed as conflicts of interest and will always transact client
business before their own when similar securities are being bought or sold.
please register to get more info
Altus has full discretion to determine the securities and amount of securities for all managed
portfolios. All trades are based upon the client’s investment objectives.
Altus currently uses Goldman Sachs for the execution and settlement of trades in the clients’
portfolios. Altus has negotiated favorable commission rates for our clients. Altus receives certain
brokerage and research products and services in consideration for commissions generated. These
products and services qualify as brokerage and/or research as defined by Section 28(e) and
they are utilized for all accounts managed accounts.
please register to get more info
The President and Vice President are the sole reviewers of all client accounts. The securities in
every client's account are under continuous review. In addition, bimonthly reviews are conducted to
monitor compliance with each clients portfolio objectives and to determine whether there should be
any adjustments to the portfolios.
All transactions are reported directly to clients via copies of broker confirmations and monthly
statements sent directly to the clients from the custodian. Clients may also have online access to
their accounts through the custodians web site. Altus provides clients with a quarterly report which
includes a letter describing the portfolio performance and market conditions, portfolio appraisal
which includes cost and market values, asset allocation report which includes yields and percentage
of assets allocated to each sector and a quarterly realized gain and loss report.
please register to get more info
Altus uses the trust department of a bank as custodian for our managed accounts with marketable
securities. Altus has negotiated favorable custody fees for client accounts. Refer to the Fees and
Compensation section of this brochure for additional information. Clients may elect to receive trade
confirmation and monthly statements directly from the custodian or have online access to their
account through the custodians web site. In addition, Altus sends quarterly reports to the clients.
Please refer to Review of Accounts for additional information.
please register to get more info
Altus accepts full discretionary authority to manage client accounts. Clients execute an Investment
Advisory Agreement which outlines the terms of the relationship. In this document, the client may list
any restrictions they place on their account such as securities or industries they do not want to
invest in.
please register to get more info
Altus will accept voting authority for client securities in certain cases. When Altus does accept voting
authority for client securities, it will always seek to vote in the best interests of its clients. Clients may
direct Altus on how to vote client securities by communicating their wishes in writing or electronically
to Altus. Clients of Altus may obtain the voting record of Altus on client securities by contacting Altus
at phone number or e-mail address listed on the cover page of this brochure.
please register to get more info
Altus does not require nor solicit prepayment of more than $500 in fees per client, six months or
more in advance and therefore does not need to include a balance sheet with this brochure.
Altus does not have any financial conditions that are likely to reasonably impair our ability to meet
contractual commitments to clients.
Altus has never been the subject of a bankruptcy petition.
Form ADV Part 2B
Brochure Supplement
Scott Burns
6120 Parkland Blvd.
Suite 303
Mayfield Heights, OH 44124
Phone: 440.995.1330
This brochure supplement provides information about Scott Burns that supplements the
Altus Capital Inc. brochure. You should have received a copy of that brochure. Please
contact John Burns if you did not receive Altus Capital Inc.’s brochure or if you have any
questions about the contents of this supplement.
Item 2 Educational Background and Business Experience
Date of birth: 11/25/1974
Education: B.A. (Accounting), Miami University, Oxford, Ohio
Business Background:
2006 - Present Vice President, Altus Capital Inc.
2004 – 2006 Vice President, Altus Capital, LLC
1999 – 2004 Financial Analyst, Shaker Investments
1997 – 1999 Senior Auditor, Ernst & Young, LLP
Item 3 Disciplinary Information
There are no legal or disciplinary events related to Scott or Altus Capital Inc.
Item 4 Other Business Activities
Scott Burns is not actively involved in any other business activities which would cause a conflict of
interest.
Item 5 Additional Compensation
Scott Burns does not receive economic benefit from any source other than salary and bonus from
Item 6 Supervision
John Burns and Scott Burns work as a team to provide investment management services to our
clients. All portfolio actions are mutually agreed upon.
Form ADV Part 2B
Brochure Supplement
John Burns
6120 Parkland Blvd.
Suite 303
Mayfield Heights, OH 44124
Phone: 440.995.1330
This brochure supplement provides information about John Burns that supplements the
Altus Capital Inc. brochure. You should have received a copy of that brochure. Please
contact John Burns if you did not receive Altus Capital Inc.’s brochure or if you have any
questions about the contents of this supplement.
Item 2 Educational Background and Business Experience
Date of birth: 10/13/1946
Education: B.B.A. (Accounting), Niagara University, Niagara Falls, New York
Business Background:
2006 - Present Founder and President, Altus Capital Inc.
2005 - Present Founder and President, Altus Trading, LLC
2002 – 2006 Founder and President, Altus Capital, LLC
2001 – 2002 Founder and Chairman, John Burns Enterprises
1998 – 2001 Executive Vice President, National City Corporation
1980 – 1998 Founder and Chairman, Sterling Ltd. Co.
1993 – 1998 Founder and Chairman, Sterling Asset Management Co.
1971 – 1980 Senior Tax Manager, Price Waterhouse and Co.
Item 3 Disciplinary Information
There are no legal or disciplinary events related to John or Altus Capital Inc.
Item 4 Other Business Activities
John Burns is not actively involved in any other business activities which would cause a conflict of
interest.
Item 5 Additional Compensation
John Burns does not receive economic benefit from any source other than salary and bonus from
Item 6 Supervision
John Burns and Scott Burns work as a team to provide investment management services to our
clients. All portfolio actions are mutually agreed upon.
please register to get more info
Open Brochure from SEC website