Broker Check

Our Company

Capitol Securities Management Inc. - Capitol Securities Management, Inc. is a full-service, retail brokerage firm providing comprehensive wealth management services since 1981.  Capitol Securities has grown into a successful regional brokerage and advisory firm with over 225 employees and offices from Boston to Florida.

Times have changed since our beginning. But our clients still expect preservation and growth of assets - and an unparalleled level of personal attention. Our philosophy of absolute client commitment means that we listen to our clients and respond to unique financial objectives with a broad range of customized services.

Investment Management, Corporate Retirement Plans, Personal Retirement Planning, and Insurance Review and Planning

As a client of Capitol Securities Management Inc. you will have a dedicated team of experienced professionals personally assigned to you - a team who will work within the guidelines of your Investment Policy Statement while tailoring a portfolio to meet your specific needs.  

Our service commitment to you is formalized through an investment policy statement, an annual meeting and regular communications to keep you informed on your portfolio’s status and economic events that might influence your holdings.

The CS Wealth Management Group is a highly experienced team within Capitol Securities that manages and advises on assets for high net worth individuals, businesses and associations. Capitol Securities Management Inc. has approximately $4 billion under management. We maintain a disciplined, continuous execution of the plan, as well as an ongoing review to stay on track. Our clients receive regular investment communications, including monthly financial statements and quarterly performance reports.  

Investment Strategy

Our philosophy is based in the belief that asset allocation is the primary driver of long term performance. Most research supports the notion that markets are reasonably efficient.  It thus will become increasingly unlikely that anyone will be able to beat the markets consistently.  In an efficient marketplace, the expectation is that active management will result in below-average results over time.  Even in those rare situations where a money management organization has a unique proprietary insight that enables them to produce a superior result, the expectation is that the advantage will be eroded over time as other money management organizations will discover and exploit the process. The large institutions and corporations have been using strategies based upon these theories for years. 

Dramatic support for the importance of asset allocation is provided by a study of 91 large pension plans [i]. The Brinson et al. study sought to attribute the variation of total returns among plans to three factors: asset allocation, market timing, and security selection. The study concluded that on average a startling 93.6 percent of performance could be explained by asset allocation while specific security selection only accounted for approximately 5%. Your asset allocation will drive returns much more than individual security selection.  The major component of success will be the percentages that are placed into large companies, small companies, international, bonds, and cash versus the actual individual companies that would be selected.      

These studies demonstrate that it is crucial to make the appropriate asset allocation decisions first and foremost. This is not to imply that managers with superior skills do not exist, but rather that they are rare and extraordinarily difficult to conclusively identify.

With the availability of index funds and ETF’s (exchange traded funds) on virtually any index and subindex, a range of strategies that were previously designed for large institutions can now be implemented for almost any size account. Active indexing can take advantage of sectors (healthcare, energy, technology, financial etc..), size (small, mid, small cap), style(value, blend, growth). ETF’s blended with carefully selected stocks and bonds securities will be utilized to meet your personal investment goals and objectives.     

                 



[i] See Gary P. Brinson, Gilbert Beebower, and L. Randolph Hood, Determinants of Portfolio Performance, “Financial Analysts Journal (July/August 1986) Financial Analysts Journal, vol,56 (January/February 2000)