Introduction

Clear Haven Capital Management, LLC (“we,” “us,” or “our”) is registered with the Securities and Exchange Commission as an investment adviser. 

Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing. 

Relationships & Services

What investment services and advice can you provide me? 

We offer discretionary investment advisory services to retail investors. Specifically, we provide portfolio management services to high net worth individuals through managed accounts. We invest in several different asset classes to achieve our investment goals, including, but not limited to, mortgage-backed securities, asset-backed securities and other fixed-income securities. You have the ability to impose restrictions on the types of investments made for your account. Any restrictions imposed by you will be documented in your investment advisory agreement with us.  Our principals regularly review and monitor portfolio holdings to determine that the securities (and other financial instruments) held in your account remain consistent with your investment objectives and guidelines, including as part of our valuation process. There is no minimum account size.

Additional information about our advisory services is located in Items 4, 8 and 13 of our Firm Brochure.

Conversation Starters. Ask your financial professional…

• Given my financial situation, should I choose an investment advisory service? Why or why not?

• How will you choose investments to recommend to me?

• What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean? 

Fees, Costs, Conflicts, and Standard of Conduct

What fees will I pay?

We generally charge management fees, which are based on a percentage of your assets under management. Management fees are generally charged monthly or quarterly after the month or quarter, as the case may be, in which they are incurred and are prorated for all partial billing cycles. We may also charge certain accounts performance fees on an annual basis, which are based on the increase of the value of such accounts. 

These fee arrangements present certain conflicts of interest. For instance, the more assets you have in an account, the more you will pay us in management fees. We therefore have an incentive to encourage you to increase the assets in your account to increase our fees. Further, performance-based fees incentivize us to recommend riskier or more speculative investments. Additional conflicts pertaining to our fee arrangements are described below.

You will, from time to time, also incur custodial fees, pricing fees, transaction charges and/or brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer or custodian executing your transactions. Certain accounts may also be subject to pricing and settlement fees, market data fees, order cancellation fees, and legal expenses. Additionally, when we allocate a portion of your capital to money market funds or exchange-traded funds, you will indirectly incur similar fees and expenses to those above, as these funds in turn pay similar fees and expenses to their managers and other service providers.  We may also charge certain accounts setup fees, which are intended to compensate us for certain costs associated with our business. Such fees are based on the nature of the services we provide to an account and are negotiated with each account holder. 

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

Additional information about our fees is located in Items 5 and 6 of our Firm Brochure. 

Conversation Starters. Ask your financial professional…

• Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me? 

What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have? 

When we act as your investment adviser, we must act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what that means. 

• Because certain of our fees are generally based on an account’s net asset value, we have a conflict of interest in valuing account assets. To mitigate this conflict, we follow documented valuation policies. 

• Proprietary accounts of ours, our affiliates or our respective personnel can invest in the same securities as the accounts, which results in a potential conflict that they can trade ahead of, and potentially receive more favorable prices than, the accounts. We will permit such investments only when specific conditions are satisfied, which are designed to mitigate this conflict.

• When allocating investments, we are incentivized to favor accounts with higher performance-based compensation rates over other accounts. To mitigate this conflict, we follow procedures to ensure clients are treated fairly and equitably, and to prevent this conflict from influencing our allocation of investments. 

Conversation Starters. Ask your financial professional…

• How might your conflicts of interest affect me, and how will you address them? 

Additional information about our conflicts of interest is located in Items 6, 10, 11 and 12 of our Firm Brochure. 

How do your financial professionals make money? 

Our financial professionals are paid base salaries and discretionary bonuses that are generally based on the performance of our client accounts. Certain financial professionals are also eligible to receive a percentage of any performance-based compensation paid by our clients (which arrangements pose the conflicts described above).  

Disciplinary History

Do you or your financial professionals have legal or disciplinary history? 

No. Please visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals. 

Conversation Starters. Ask your financial professional…

• As a financial professional, do you have any disciplinary history? For what type of conduct? 

Additional Information

You can find additional information about our advisory services in our current Form ADV filing or by e-mailing us at investors@clearhavencm.com. For up-to-date information about us or to request an updated copy of this relationship summary, please contact us at (332) 240-0416. 

Conversation Starters. Ask your financial professional…

• Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?