Questions about investing with us

We are an investment advisor founded in 2016 and based in Chicago. We manage separate investment accounts for accredited investors. Your portfolio is held in your own brokerage account, and you authorize us to make investment decisions within the agreed strategy.

We exclude business activities that do not meet our ethical criteria, then seek returns within the remaining investment universe. Those exclusions apply across all three strategies.

They also mean passing on some businesses that perform well. We accept that trade-off and discuss it with prospective clients.

We apply specific exclusions ourselves. We look at the activities a business earns money from and its plans for growth. An ESG rating does not determine whether a company meets our criteria.

Our exclusions apply to the full strategy.

Basil Alsikafi is the founder and portfolio manager. His background includes MSF Capital, BBT Capital Management, and JPMorgan. He holds an MBA from Kellogg and an A.B. from the University of Chicago.

More about Basil.

At a category level: weapons and defense, surveillance, private prisons, tobacco, alcohol, gambling, adult entertainment, and lenders whose business model depends on excessive interest rates or customers prone to delinquency.

It extends beyond prime contractors to include companies with meaningful revenue from serving defense customers. That can include software and IT-services businesses whose industry labels do not reveal the exposure.

A sample exclusion memo explains how we examine these cases. Read the memo.

We screen it out. A company’s plans matter alongside the business it has today. A consumer brand moving into gambling is one example.

Yes. Our core exclusions apply to every client, and you can add further restrictions. For example, you may want to avoid exposure to the financial system. We can discuss how an additional restriction would affect your portfolio.

Screening can help or hurt returns relative to the unscreened market. When the companies we exclude outperform, screening can hurt our relative returns. When they underperform, it can help. That includes companies with excluded activities inside a broader business. The outcome also depends on the holdings, their weights, and fees.

This is a risk we accept. Our clients need to be comfortable with it, too.

• WBC Ethical Large Cap Index: diversified U.S. large-cap exposure with our exclusions applied.
• WBC Ethical All Cap: an actively managed mix of stocks and ETFs across company sizes, with flexibility to hold cash.
• WBC Ethical Small Cap: a concentrated portfolio of small and microcap companies.

Compare the strategies.

That depends on your priorities, time horizon, and comfort with risk. The Index offers broad exposure; All Cap gives us more discretion; Small Cap requires tolerance for concentration, limited liquidity, and substantial drawdowns.

Some clients use more than one strategy. We can discuss how each would fit with your other investments.

Our Index applies exclusions and gives you direct ownership of the underlying stocks. Each account can also accommodate additional restrictions and individual tax considerations.

Cost is higher. Our management fee is 0.45%, compared with roughly 0.03%–0.10% for a conventional low-cost S&P 500 ETF. The difference pays for researching and maintaining the screen and managing separate accounts.

If those features do not matter to you, a conventional ETF is cheaper.

Availability changes as investors add or withdraw capital. The securities we invest in limit how much we can manage, so please ask about current capacity before planning an investment.

Clients can see all the holdings in their accounts.

Accredited investors only. We verify eligibility during onboarding and can explain the requirements before you start.

You open and fund an account in your own name at a qualified custodian, then give us limited authority to trade it. You own the securities directly.

A separate account gives you visibility into each position and trade. It also lets us consider your tax situation, additional exclusions, and existing holdings. There are no lockups; withdrawals remain subject to settlement and the time needed to sell holdings.

We consider relationships individually and sometimes accommodate smaller accounts where there is a long-term fit. Tell us what you have in mind.

The firm’s Form ADV and investment management agreement provide the full terms.

Your assets are held in accounts in your name at Charles Schwab and/or Interactive Brokers. We have trading authority. Your custodian provides statements, trade confirmations, and tax documents directly to you.

Yes. There are no lockups, and withdrawals are subject to normal trade settlement. Selling a meaningful amount of a less liquid small-cap position can take additional time.

Yes. We can manage Traditional, Roth, SEP, and Rollover IRAs and similar accounts at a qualified custodian. Ask about eligibility for the strategy you are considering.

At least quarterly, through our investor letters. We also send notes on material developments such as earnings, acquisitions, and changes in positioning. Your custodian sends monthly account statements.

You can reach Basil directly with questions.

The Index strategy is diversified. Our active strategies, particularly Small Cap, are concentrated and can be significantly more volatile than broad-market indices. A few investments can have a large effect on results, and performance can differ substantially from the market in either direction.

We focus on the risk of a lasting loss of capital. In the active portfolios, that means understanding the business, sizing positions deliberately, maintaining liquidity, and being willing to hold cash when we cannot find investments we like.

That approach does not prevent drawdowns or eliminate the risk of being wrong.

Tax treatment depends on the type of account. In a taxable account, you own the securities directly and recognize the gains, losses, and dividends associated with your holdings.

We consider tax consequences when trading and coordinate with your accountant as needed.

Yes, when it makes sense for the account. We look for opportunities around year-end and during drawdowns, while respecting wash-sale rules and considering the investment thesis.

If you have realized gains elsewhere, tell us so we can coordinate with your accountant.

Yes. White Brook Capital is registered as an investment advisor. Read our Form ADV Part 2 Brochure.

We maintain a business continuity and succession plan covering portfolio management, client communication, and the orderly transition of client assets. Your investments are held in your own account at a third-party custodian.

We do not sell client information. We disclose information as needed to administer or service your account and to service providers bound by confidentiality obligations. Our Privacy Policy explains the details.

1. We discuss your situation, the strategies, and whether there is a fit.
2. We verify eligibility, review the Form ADV and investment management agreement with you, and help you open a custodial account.
3. You fund the account, and we begin building the portfolio. That can take a few weeks, particularly where investments are less liquid.

The paperwork can be completed quickly. We wait a week after the investment management agreement is formally signed to give clients time to change their minds without consequence. Funding and portfolio implementation take additional time.

Email info@whitebrookcapital.com or send a message through the contact page.