Description of Firm
Fulcrum Equity Management, LLC was founded in 2011 and is a Registered Investment Adviser based in Plano,
Texas. We also operate under the d/b/a Providence Wealth Management. Fulcrum Equity Management is
organized as a limited liability company under the laws of the State of Texas.
Bellwether Investment Management USA Inc., a wholly owned subsidiary of Lorne Park Capital Partners Inc.
(LPCP), is the owner of Fulcrum Equity Management, LLC. LPCP is a publicly listed company on the Toronto
Venture Stock Exchange.
As used in this Disclosure Brochure, the words "we", "our" and "us" refer to Fulcrum Equity Management, LLC
and the words "you", "your" and "client" refer to you as a client or prospective client of our firm. Also, you may
see the term Associated Person in throughout this Disclosure Brochure. Our Associated Persons are our firm's
officers, employees, and all individuals providing investment advice on behalf of our firm. Fulcrum Equity
Management, LLC offers investment advice with the assistance of its Investment Adviser Representatives.
Investment Management Services
Our firm offers investment management services that consist of discretionary portfolio management services
where the investment advice is tailored to meet your individual circumstances and investment objectives. These
services include an initial discovery consultation, ongoing review consultations, as may be agreed, to discuss
your unique financial situation and changing needs over time. We will ask that you complete certain investor
questionnaires, on-boarding forms, and/or other documents to assist us in gathering information about your
financial needs and circumstances. This would include your investment experience, investment objectives, time
horizon, liquidity needs, risk tolerance, tax circumstances, and various other financial factors necessary for us to
develop a complete investor profile.
Based on our evaluation of the foregoing factors, we will use the information we gather to develop a strategy
that enables our firm to give you continuous and focused investment advice and/or to make investments on
your behalf. Once we construct an investment portfolio for you, we will monitor your portfolio's performance
on an ongoing basis and will rebalance the portfolio as appropriate. Clients are required to notify our firm
immediately if their financial circumstances and/or investment objectives change from what has already been
disclosed to our firm.
If you enter into discretionary arrangements with our firm, you must grant our firm discretion over the selection
and number of securities to be purchased or sold for your account(s) before we can buy or sell securities on
your behalf. Discretionary authority enables our firm to execute transactions within your account without
obtaining your consent or approval prior to each transaction. In limited circumstances and in our sole discretion,
we may accept instructions from you that limit our discretionary authority (for example, limiting the types of
securities that can be purchased or sold for your account). Such requests must be presented to our firm in
writing.
For information on our methods of analysis, investment strategies, and how we might manage your account(s),
please see Item 8 (Methods of Analysis, Investment Strategies and Risk of Loss section) of this Disclosure
Brochure.
Sub-Advisory Management Services
Fulcrum Equity Management, LLC provides sub-advisory portfolio management services to unaffiliated third-
party investment advisers (the "Primary Investment Adviser") and their clients where we manage assets on a
discretionary basis as a sub-advisor using specific portfolio strategies developed by our firm, or utilize strategies
developed and licensed by other firms. Discretionary authorization will allow us to determine the specific
securities, and the amount of securities, to be purchased or sold within our investment strategies. As part of
these services, we will provide model investment strategies, which the Primary Investment Adviser selects for
their clients. The Primary Investment Adviser will have the initial and ongoing responsibility to collect client
suitability.
Financial Planning and Consulting Services
We provide financial planning and consulting services as a stand-alone service where we offer modular,
consultative, broad-based, and/or ongoing financial planning services. These services generally involve a variety
of advisory services regarding the management of the client's financial resources based upon an analysis of their
individual needs. If you retain our firm for these services, we will meet with you to gather information about
your financial circumstances and objectives. As required, we will conduct follow-up interviews for the purpose
of reviewing
and/or collecting additional financial data. Once such information has been reviewed and analyzed,
we will provide you with our recommendations designed to help you achieve your stated financial goals and
objectives.
Our recommendations are based on your financial situation at the time we provide our recommendations, and
on the financial information you provide for our firm. You will always have the right to accept or reject our
recommendations. All terms of the engagement, including specific services to be performed, will be evidenced
in a written agreement between you and our firm.
As part of our consulting services, we offer various levels of advisory and consulting services to employee
benefit plans and to the participants of such plans ("Participants"). The services are designed to assist plan
sponsors ("Plan Sponsors") in meeting their management and fiduciary obligations to the Participants under the
Employee Retirement Income Securities Act ("ERISA"). In all cases, Plan Sponsors must make the ultimate
decision to retain our firm for advisory services. The Plan Sponsor is free to seek independent advice about the
appropriateness of any recommended services for the plan.
In providing services to a Plan and/or Participants, our status is that of an investment adviser registered under
the Investment Advisers Act of 1940, and we are not subject to any disqualifications under Section 411 of ERISA.
To the extent we perform fiduciary services, we are acting as a fiduciary of the Plan as defined in Section 3(21)
under ERISA.
We may also provide additional types of pension consulting services to plans on an individually negotiated basis.
All services, whether discussed above or customized for the plan based upon requirements from the plan
fiduciaries (which may include additional plan-level or participant-level services) shall be detailed in a written
agreement and be consistent with the parameters set forth in the plan documents.
Types of Investments
For financial planning and consulting services, we may advise you on any type of investment that we deem
appropriate based on your stated goals and objectives. For investment management services, we typically
recommend individual equities, ETFs, or mutual funds as part of our investment strategies, but we may
recommend other securities/investments as may be appropriate for each individual client.
IRA Rollover Recommendations
For purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where
applicable, we are providing the following acknowledgment to you.
When we provide investment advice to you regarding your retirement plan account or individual retirement
account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act and/or
the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we make
money creates some conflicts with your interests, so we operate under a special rule that requires us to act in
your best interest and not put our interest ahead of yours. Under this special rule's provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent
advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we manage
or provide investment advice, because the assets increase our assets under management and, in turn, our
advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in your best interest.
Wrap Fee Programs
Our firm also serves as a portfolio manager and sponsor of a Wrap Fee Program, which is a type of investment
program where clients pay a single fee that includes management fees and certain other brokerage costs. We
receive a portion of the wrap fee for our services. The overall cost you will incur if you participate in our Wrap
Fee Program may be higher or lower than you might incur by separately purchasing the types of securities
available in the program. For more information concerning the Wrap Fee Program, please see our firm's Wrap
Fee Disclosure Brochure, Form ADV Part 2A Appendix 1.
Assets Under Management
As of December 31, 2023, we manage approximately $185,930,091 in client assets on a discretionary basis and
$0 in client assets on a non-discretionary basis.