An area of strength for the firm is its relatively high portfolio manager retention over the past five years, as long-term stability tends to support positive results. The firm’s lineup has demonstrated industry-average durability. Its three-year success ratio is 50%, meaning that 50% of strategies have both survived and beaten their respective category median. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. Fees on open-end and exchange-traded funds are a weakness of the firm, contributing negatively to the rating. On average, expenses on its funds are within the second most-expensive quintile compared with category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal.
Potomac Fund Management's track record as a steward is mixed, leading to an Average Parent Pillar rating.
United States