Llenroc considers the safety and security of our clients’ assets and investment returns to be our highest priorities. Llenroc Capital LLC is a S.E.C. Registered Investment Advisor and has therefore implemented extensive policies and procedures for operating an investment management firm. We offer two structures for investing client assets described below which we maintain in a manner that provides for the safety and security of our clients’ assets.
Security of Client Assets
Separate Account Management
Llenroc Capital offers Separate Account Management (SAM) using the standard investment management industry structure. All SAM client assets are held at a third-party custodian chosen by each client. Llenroc Capital has a formal preferred custodian relationship with Fidelity Institutional Wealth Services, a wholly owned subsidiary of Fidelity Investments, which we recommend to our clients in search of a low-cost custodian. All Llenroc client accounts held at Fidelity have Level 1 Trading and Asset Movement Authorization which only allows funds to be transferred to other same-client accounts at Fidelity, other accounts authorized by the client through standing instructions, checks paid to the client at their address, or to pay Llenroc investment management fees. Llenroc SAM client custodians send electronic transaction confirmations to The Depository Trust & Clearing Corporation, which operates as a central clearinghouse for all Llenroc SAM client transactions. All Llenroc SAM client custodians send monthly or quarterly statements directly to each client and typically provide password-protected on-line access to their clients’ accounts.
Investment Partnership
Llenroc’s Investment Partnership, CAA Partners LP, is structured to provide for the safety and security of our investors’ (Limited Partners) funds, evidenced by the following facts. First, all Partnership assets are custodied at J.P. Morgan Clearing Corp., a wholly-owned subsidiary of J.P. Morgan Chase & Co. Second, all fund outflows are monitored by GSEC; any partnership withdrawals, including management and performance fees require the signature of Llenroc Principal Managing Director David S. Post and the fund’s Prime Broker, Shoreline Trading Group which acts as Prime Broker for over two hundred investment partnerships. Third, Limited Partners receive monthly statements directly from Panoptic Fund Administration, a third party fund administration firm with over forty investment partnership clients. Lastly, Seiler LLP, one of the San Francisco Bay Area’s largest public accounting firms, conducts a detailed annual audit of the fund’s financial statements and investment returns, which Llenroc sends to all Limited Partners.
