How do Cable Car’s fees compare to alternatives?

Cable Car is not the lowest-cost provider of investment advice, and lower fees for similar services may be available elsewhere.

The firm’s fees are generally higher than those offered by index funds, long-only mutual funds, and long-only managed accounts. They are generally comparable to or lower than fees for actively managed “alternative investments” such as long/short mutual funds, long/short managed accounts, and hedge funds. Unlike many mutual funds, Cable Car does not charge sales loads or marketing and distribution (12b-1) fees. Cable Car also does not use client assets to pay for research. The practice of inflating brokerage commissions to pay for research is common in the industry, can lead to conflicts of interest, and adds to client expenses without transparency. Cable Car’s fees are used to support its full-time research efforts, and all research expenses are paid directly by the firm.

Posted in: Fees and expenses