Company Overview

Who is Stock Circles Inc.?

Company: Stock Circles is a Delaware C-Corporation, SEC-registered Investment Advisory Firm, headquartered in Los Angeles. Stock Circles offers investment products and services to investors in the United States. It has for mission to help investors reach their financial goals using technology.

Products & Services: Stock Circles offers discretionary investment advisory services via an automated portfolio management platform called Activefol.io. Activefol.io simplifies stock investing down to a few easy steps. It offers access to systematic investment strategies that take advantage of Street Sentiment, our proprietary multi-dimensional market surveillance technology. Activefol.io is designed to find, monitor and invest in some of the most positive stories found on the S&P500®, Nasdaq 100 and Dow 30. It replicates an investment behavior called 'trading on the news'.

Investment Services

What is Activefol.io?

Technology: Activefol.io, an automated portfolio management platform that uses Street Sentiment™, our proprietaty technology, to screen, monitor and auto-invest in some of the most positive stock stories found on the S&P500®, Nasdaq 100, and Dow 30.

Philosophy: Activefol.io’s advice is based on our unique Investment Philosophy. We believe that, in this day and age, and to achieve superior returns, investors can benefit from targeting most talked about stock stories using technology.

Suitability: Activefol.io's systematic strategies are designed for sophisticated Investors and Portfolio Managers who want to benefit from investing using our innovative investment system. Please inquire within to get more details.

How is Activefol.io different from other investment solutions?

Innovation: Active portfolios become less productive when they become overly risk-managed and diversified. Too many people are using the same approach, taking most of the alpha out. Activefol.io solve these problems by taking concentrated bets from high-frequency opportunities, turning them into alpha.

We offer a highly potent market surveillance technology, coupled with highly active investment strategies, to capture higher sources of alpha. Our investment product routinely outperformed index funds such as SPDR S&P 500® ETF Trust (SPY), in a variety of markets, in the past 3 years. They are great alternatives to passive ETF products who are designed to produce returns similar to the index they follow. Activefol.io requires a higher risk tolerance than ETFs, hence its availability to sophisticated Investors.

Investment Style: Using Street Sentiment™, Activefol.io invests in some of the most positive constituents of the S&P 500®, Nasdaq 100, and Dow 30. Investors benefit from a unique systematic investment system powered by Artificial Intelligence. They own the securities bought on their behalf which means that they have complete control over them. Because of this added freedom, investors are given access to less stringent contractual clauses. Instead of yearly contracts, they are billed monthly, can sell their securities, and can cancel their contract at any time.

Investment Philosophy

What is your Investment Philosophy?

Area of Expertise: At Stock Circles, we are leaders in Behavioral Finance Analytics and Artificial Intelligence. Our discipline looks at how emotional factors can shape market direction – and therefore how it affects your investments.

Research: Our automated portfolio management platform features innovations such as Artificial Intelligence screening based on Street Sentiment™, our proprietary technology. The technology allows us to identify investment opportunities, monitor thousands of securities, and execute trades on investor's behalf.

Application: We have developed a unique systematic investment system – Activefol.io – that enables the classification of securities in real-time for the purpose of investing. Street Sentiment™, our multi-dimensional surveillance technology, feeds quality intelligence to your strategy so it can make investment decisions on your behalf.

History: In the past 3 years, Activefol.io's systematic strategies experienced a variety of markets, including serious corrections and volatility. During this period, select strategies routinely outperformed the S&P 500 SPDR® ETF Fund Trust (SPY).

Characteristics: Consistency was observed as being one of the most important characteristics of our investment system. This characteristic became an undeniable asset in volatile markets. Activefol.io monitors and processes large amounts of data in real-time. It is reliable, does not harbor any emotional bias, and does not favor specific Companies.

Investment Turnover: Street Sentiment™, our proprietary algorithm, promotes some of the most talked about stock stories to systematic investment strategies. Since stock stories change all the time, investment strategies can be personalized to produce many trades per session. It is much faster than its human counterparts at detecting opportunities and at executing trades. Some strategies are slower than others. It depends on the strategy's parameters, risk tolerance, and suitability.

Investment Strategies

Who is Activefol.io suitable for?

Sophisticated Investors: Activefol.io is designed for sophisticated investors interested in putting a portion of their holdings on autopilot.

Portfolio Managers: Our systematic investment system helps Portfolio Managers grow their business by taking advantage of the latest advances in technology.

Partner Firms: We aim to provide best of breed, thoroughly tested systematic strategies, built to suit specific requirements, risk tolerances, and needs. We are interested in partnering with existing firms that seek to offers their client a unique set of active investment products.

What kind of investment strategies do you provide?

Strategies: We provide a variety of systematic investment strategies, each tailored to specific risk tolerances and needs.

Securities Universes: Activefol.io provides systematic investment strategies and actively invests in some of the most positive components of the S&P 500®, Nasdaq 100, and Dow 30. From a financial product categorization perspective, we offer access to highly liquid Large Cap US Stocks.

Customization: Each strategy is customizable to fit your specific needs, restrictions, and/or requirements. We can customize the list of securities you want to invest into via our 'Favorites' feature.

Risk Management: Each strategy is outfitted with an appropriate systematic profit taking and stop-loss parameter.

Taxes: Stock Circles does not advise on taxes. Activefol.io produces short-term investments. Depending on your strategy, it can produce several trades per day. Short-term investments may be taxed at a higher rate than long-term investments. We encourage you to consult your Financial Advisor or CPA to understand the benefits and tax liabilities associated with the production of short-term investments before you start your strategy.

How often can I change my strategy?

Customization: You can elect to modify your strategy at any time. However, Activefol.io is designed to support long-term investment goals. It is not designed to function as a trading tool. We do not recommend that you change your strategy unless your situation warrants material changes. Changing a strategy can be challenging given that your capital is invested according to a predetermined budget and other parameters. We do not recommend to change your strategy to try and time the market or take advantage of short-term price movements. Your account is fully managed by Activefol.io and these types of interventions may prove counterproductive to your long-term goals.

Manual Rebalancing: Your strategy is 100% on auto-pilot. If we detect that your account requires manual rebalancing, we will reach out to explain the reasons why we think it would be optimal to make a change and get your permission to implement the change.

Account Management We manage the entirety of the account under one strategy to prevent dollar cost averaging and problems with systems coherence and synching. We do not recommend making manual trades from your brokerage account. Doing so would void your management contract and may cause unsolicited events, including losses.

Account Requirements

What types of accounts can Activefol.io manage?

Disclaimer: There are many different types of accounts compatible with Activefol.io. We do not make recommendations on the appropriateness of specific account types. Please talk to your Legal Counsel to understand which account is appropriate for your situation. Below is a list of the most popular options:

Individual: An account owned by one person. Any income earned (including dividends), is subject to income taxes to be paid that year. The taxes can be offset with any losses realized in the same year.

Joint With Rights of Survivorship: A surviving member will inherit the total value of the other member's share of account assets upon the death of that other member. All members of the account are afforded the power to conduct investment transactions within the account as well.

Traditional IRA: Allows individuals to save for retirement by granting its owner tax-deferred advantages. You can contribute if you have taxable compensation but not after you are age 70½ or older. Pretax income, subject to specific annual limits, can be directed towards investments that can grow tax-deferred (no capital gains or dividend income taxes). Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status, and other factors. Withdrawals in retirement are subject to ordinary income tax rates.

Roth IRA: Allows individuals to save for retirement by granting its owner tax-deferred advantages. You can contribute at any age if you have taxable compensation and your modified adjusted gross income is below certain amounts. Income, subject to specific annual limits, can be directed towards investments that can grow tax-deferred (no capital gains or dividend income taxes). Contributions to the Roth IRA are not tax-deductible. You can withdraw your contributions at any time with no penalties and withdrawals are tax-free.

Rollover IRA: Allows individuals to transfer assets from their former employer’s retirement plan, such as a 401(k), 403(b), 457, or Thrift Plan when they change jobs or retire without having to pay any taxes or penalties. You can either transfer an existing Rollover IRA to Stock Circles (i.e. an IRA that has already been rolled over from an employer-sponsored account), or rollover an employer-sponsored account to a new Rollover IRA account opened with Stock Circles.

What are your minimum requirements?

Cash Requirements: You will need a minimum of $25,000 in a supported broker/dealer account, have your margin enabled and be a resident of the United States to use Activefol.io. Stocks investing involves substantial risk of loss and is not suitable for every Investor. Invest only with risk capital; that is, invest with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.

Country of Residence: A US person is an individual who is a US citizen or US resident alien, a partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, an estate (other than a foreign estate), or a domestic trust.

International Citizens: International citizens with a U.S. based LLC or Family Office can use Activefol.io.

Fees & Billing

Do you offer a free demo of Activefol.io?

Free Investment Simulation Mode: You can test your systematic investment strategy in simulation mode, risk-free until you are ready to invest.

Recommendation: In fact, we recommend testing your strategy for 30 days before you start trading using real capital.

Suitable Investment Strategies: Find out which investment strategy is the most appropriate for your specific situation. Contact us for more information.

What are the fees charged by Stock Circles?

Fees & Schedule: Our total percentage of capital is quoted on an ANNUAL basis, and you will be billed 1/12th of the annual fee each month. For example, if you are in the 1.44% yearly pricing level, fees of 0.12% of your Capital will be charged on approximately the same day you started your strategy, every month.

Changes in Capital: Fees owed to Stock Circles will adjust automatically based on changes in capital inflows and outflows.

Automatic Monthly Renewal: Your account will renew automatically each month until you stop your strategy, sell all your positions, or cancel your contract.

Cancellation: You can cancel a any time by stopping your strategy from within the web app. You will be billed only for usage that month.

What other expenses should I expect?

Brokerage Expenses: As the custodian of your account, our Broker/Dealer partners may charge extra for their services. They offer trade execution services, data access, proxy voting, dividends accounting, send confirmation emails and are required to produce your 1099 tax document. These services can be charged separately by the Broker/Dealer directly in your account. Exchange fees may also apply.

Regulations & Compliance

Who is your regulatory body?

Stock Circles Inc.: Stock Circles is a Registered Investment Advisor (RIA) with the SEC. Stock Circles' IARD number (used to find Stock Circles Inc. in the SEC database) is #289275. Please find our latest filing here.

SEC: The Security Exchange Commission (SEC) is the independent watchdog that regulates financial services in the United States. This web site is designed to meet SEC’s requirements for information disclosure. It contains information to help you decide if the services Stock Circles offer are right for you.

Is Stock Circles affiliated with any large corporations?

Affiliations: No. We are completely independent and non-partisan. We are not affiliated with any bank, brokerage, or research companies. We do not push any products and aim to provide transparent systematic investment services to our partners and investors.

Is Stock Circles the Custodian of your account?

RIA vs. Broker/Dealer: Stock Circles is not a Broker/Dealer or a Custodian. We do not physically take possession of client assets, nor do we execute buy/sell orders in the open market. Stock Circles is a Registered Investment Advisor (RIA) with the SEC.

Discretionary Powers: We are registered to oversee and manage investment accounts and place discretionary trade on behalf of clients. Any account opened with us is held at a Broker/Dealer custodian that is a member of SIPC or an FDIC insured custodian bank, where the account is held in your name.

Broker/Dealer Definition: The Broker/Dealer is responsible for executing trades in the open market, based on Activefol.io's instructions. If you would like further clarification on the difference between a Registered Investment Advisor, a Broker/Dealer, and a Custodian please let us know.

If something was to happen to Stock Circles, what happens to my account(s)?

Account: Nothing. For enhanced security to our customers, Stock Circles does not operate as a Broker/Dealer or Custodian. We use a trusted third-party to perform this service. Your account at the Custodian remains open no matter what happens to Stock Circles, and you will have the opportunity to move it elsewhere at your discretion once you decide to stop using its investment system.

What kind of reporting does Stock Circles provide?

Reporting: While our Custodian does provide its own reporting Activefol.io provides Time Weighted Returns and other relevant metrics and reports. Tax-related documents, proxy voting, dividends, and transactional documents are provided by the Broker/Dealer who is the Custodian of the account. Stock Circles related reports are available 24/7 via our web application.

Do you require discretionary authority over my account?

Discretionary Powers: Yes, Stock Circles requires discretionary trading authority so that Activefol.io can invest on your behalf. Our compliance team will provide you with a contract stating the following:

  • - We exercise discretionary trading authority over your account.

  • - We do not accept unsolicited orders.

  • - We do not discuss specific transactions with you prior to execution.

  • - We do not allow unmanaged assets to be held in your managed accounts.

Technology

Do you have any white papers detailing your technology?

White Papers: Yes, you may inquire to receive a white paper by contacting us at info@stockcircles.com.

What are your technical requirements?

Web browsers: We have optimized the platform for all modern web browsers, including Internet Explorer 10. You will need to have JavaScript enabled on your browser to properly access the platform. JavaScript is enabled as a default on every major browser.

Mobile Access: Our mobile experience is an extension of our desktop experience. We built our mobile experience for clients to stay up to date on the status of their account(s), with limited functionality based on screen real-estate.

Some of the features of Stock Circles aren't working. What am I doing wrong?

Here are a few reasons why you may be having these problems:

JavaScript: Do you have JavaScript enabled on your browser? Our platform uses a lot of JavaScript, and most pages will not work properly without it.

Legacy Browsers: Are you using an old version of Internet Explorer? Coming from the financial community, we understand that many financial services companies will use older versions of Internet Explorer for security reasons. Many times, even on newer browsers, companies will disable certain features and settings. Our platform is optimized for Internet Explorer 10+, all versions of Firefox, Safari, and Chrome. The platform may not function properly on IE 6, 7, 8, or 9.

Partnerships

Can our Private Wealth Management Firm partner with you?

Partnerships: Yes! We are open to discuss your specific integration needs and are very much interested in exploring partnerships.

Offering: Stock Circles offers a state of the art automated portfolio management platform designed to help busy Portfolio Managers and Partners offer their clients outstanding systematic investment strategies. Contact us for more information.

How does Stock Circles work with international partners?

International: We work with international partners in the following ways:

- White label and IP licensing on a non-exclusive or exclusive basis.

- White label IP reselling agreement.

Partners Profile: Partners may include foreign banks, financial institutions, investment firms, consulting firms, and technology companies. Contact us for more information.