Each of Cable Car’s clients opens a separate brokerage account with a third-party custodian, which Cable Car manages alongside its other client accounts. Clients delegate trading permissions to Cable Car, but otherwise retain full control over the account. Assets within the account are held in the client’s name.
Mutual funds, hedge funds, and other similar vehicles are pools of capital from multiple investors combined into a single account. Investors own fractional interests in the pooled assets but do not own or control the underlying account.
Posted in: Managed accounts