Wealth strategies as individual as you are
Potomac Investment Company is an independent wealth management firm founded in 1983. We manage investment portfolios for individuals, families, trusts, estates, and endowments, and we have done so through four decades of market cycles.
A firm built for long relationships
Potomac Investment Company has managed private capital since 1983. The firm is independent and privately held: it is not a subsidiary of a bank, an insurer, or an asset manager, and it has no proprietary products to distribute. That independence is why our advice can begin with the client's circumstances rather than with a product shelf.
We are a boutique by intention rather than by default. The firm accepts a limited number of relationships so that each one receives the attention of senior professionals, and clients deal directly with the people who make investment decisions. Where a matter calls for specialist expertise, we work alongside the attorneys, accountants, and trustees our clients already rely on.
Client assets are held at independent qualified custodians, and the firm maintains written compliance, privacy, and business continuity policies consistent with its obligations as a registered investment adviser and broker-dealer.
Whom we serve
Individuals & families
Multi-generational relationships built around long-term objectives.
Trusts & estates
Assets managed under trust, in coordination with trustees and counsel.
Endowments & nonprofits
Portfolios managed to an institution's spending policy and mandate.
Retirement accounts
Individual and rollover retirement assets managed within the wider plan.
Leadership
The firm was founded by an economist whose career was spent inside the institutions that set monetary and banking policy in the United States.
Carol Greenwald, Ph.D.
Carol Greenwald founded Potomac Investment Company in 1983 and serves as its president, leading the firm's investment process and its client relationships.
Portfolios are built from fundamental research on individual companies and funds, with positions sized to each client's objectives and revisited as circumstances change. Under her leadership the firm has managed client capital through the crash of 1987, the dot-com collapse, the 2008 financial crisis, and the market dislocations since.
Professional record
- Education
- Ph.D. in Economics, Columbia University
- Federal Reserve
- Economist, Federal Reserve Bank of New York; Assistant Vice President and Economist, Federal Reserve Bank of Boston
- Public service
- Massachusetts Commissioner of Banks and economic adviser to Governor Michael S. Dukakis
- Banking
- First President, National Consumer Cooperative Bank
- Academic
- Faculty, Harvard Business School
What we do for clients
Most relationships begin with an investment portfolio and grow to include the decisions that surround it. We coordinate with the attorneys and accountants clients already rely on.
Discretionary portfolio management
We manage diversified portfolios of individual securities and funds under a written strategy, handle day-to-day decisions, and review positioning with clients on a regular schedule.
Retirement and income planning
Building assets toward retirement, then converting them into a durable withdrawal strategy that accounts for taxes, required distributions, and longevity.
Trusts, estates, and family wealth
Managing assets held in trust and coordinating with estate counsel so that wealth transfers to the next generation on the terms the client intends.
Endowments and charitable giving
Investment management for nonprofit and charitable assets, and gift structures that reflect a client's intent without disrupting the broader plan.
How we invest
No two clients arrive with the same obligations, tax position, or tolerance for loss. Portfolios are tailored to each client's circumstances rather than assembled from a strategy that was designed for someone else.
The plan comes before the portfolio
We start with what the assets are meant to do, over what period, and what a client is unwilling to risk. Allocation follows from those answers rather than preceding them.
Patience through the cycle
Portfolios are built to be held. We adjust when the facts change, not when the headlines do, and the firm is equally comfortable positioning for growth, for income, or for the preservation of capital.
Risk managed deliberately
Fundamental research into every holding, diversification across asset classes and sectors, and close attention to concentration and liquidity.
Capacity limited by design
The firm takes on a measured number of new relationships each year. Growth in assets has never been permitted to outpace the quality of the advice behind them.
In our clients’ words
Excerpts from statements provided by clients of the firm.
We are so grateful. You have managed the funds in our Trust through many phases of our life, from Trust inception, to its division between siblings, right to the present point now where we are planning for the next generation… [You have] given us confidence as we move towards retirement and consider the uncertainties before us… Your regular personal communications reinforce our confidence, keeping us informed on market conditions, your strategic outlook, and your advice.
I’ve been with Potomac Investment Company for over 15 years. I first met Carol Greenwald when she was managing the investments for an organization where I was on the board. I was impressed with the clarity and candor of her presentations to the board. I transferred some of my holdings to Carol and never regretted it. Her quarterly letters about our accounts are more helpful and succinct than any of the reports we have received from other financial institutions. She has tailored our investments to the personal needs of our family members. I appreciate her excellent service and her attention to detail.
These statements were provided by current clients of Potomac Investment Company. No compensation was paid for them, and the clients have no material conflict of interest in providing them. Statements have been excerpted for length; complete statements are retained by the firm. The experience of these clients may not be representative of the experience of other clients, and is not a guarantee of future results.
How we are paid and whom we answer to
Potomac Investment Company is registered as both an investment adviser and a broker-dealer. Clients are entitled to understand what that means before they engage the firm.
Capacity
When we provide investment advice we act as your investment adviser and are held to a fiduciary standard. When we execute securities transactions as your broker-dealer, we are held to Regulation Best Interest. We tell you which capacity applies.
Compensation
Advisory relationships are billed as a percentage of assets under management. Brokerage transactions may involve commissions. Our fees and conflicts are disclosed in writing in Form ADV and Form CRS.
Custody
Client assets are held at independent qualified custodians. Clients receive statements directly from the custodian and can verify their holdings independently of the firm.
Ownership
The firm is privately held and independent. It is not owned by a bank, an insurer, or an asset manager, and it has no proprietary funds to distribute.
Request an introduction
The firm accepts a limited number of new relationships each year, generally beginning at $250,000 in investable assets. An initial conversation carries no cost or obligation, and is usually the fastest way to learn whether the firm is a fit.
5600 Wisconsin Avenue, Chevy Chase, MD 20815