Tectonic Advisors LLC (Plano)


Tectonic Advisors LLC is a large advisory firm based in Plano. It manages $1.27 billion of regulatory assets for 92 client accounts. It has been registered with the SEC as an adviser since 2015 and has operated in the jurisdictions of Florida, Hawaii, Kansas, and 5 other states.

Tectonic Advisors provides portfolio management for individuals and small businesses, portfolio management for pooled investment vehicles, portfolio management for businesses and institutional clients, selection of other advisers, and research and due diligence for other investment advisors. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Tectonic Advisors: assets under management

The assets under management (AUM) of Tectonic Advisors LLC is $1.27 billion. The firm's AUM has grown by 21% since the beginning of its operation, and the company doesn't manage any assets belonging to foreign clients.

The firm manages $1.27 billion in discretionary accounts and $6.03 million in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $14.58 million each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $1.21 million.
Tectonic Advisors has custody of $131.82 million in cash and securities for 22 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in exchange traded securities the most. They account for 62% of the total AUM. The second-largest asset type is investment and business development companies, which make up 16% of the firm’s portfolio. Investments in state and local bonds form 16% of the total invested assets.

Fees & Commissions

The advisory firm has a single stream of revenue. Clients pay Tectonic Advisors LLC for their services and products based on a percentage of assets under management. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Darrell Ward Cain serves?

The firm provides services to individuals, charitable organizations, high net worth individuals, and pooled investment vehicles. The largest group of clients of Darrell Ward Cain is pooled investment vehicles with 1 clients and $1.13 billion of assets under management. Among the 8 most similar advisory firms, Tectonic Advisors has the 3rd highest percentage of pooled investment vehicles out of all clients.

The amount of regulatory assets under management is $1.27 billion for 23 clients that can include trusts, estates, and 401(k) plans and IRAs of individuals and their family members. None of the firm’s clients are foreign persons or businesses.

Tectonic Advisors doesn't advise any private funds.

Careers at Tectonic Advisors LLC

The company employs 13 people that are either part- or full-time employees. 38 percent of the employees work as investment advisers or researchers. 6 employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Darrell Ward Cain has been acting as President since 1 May 2005. Nancy Elaine Dixon joined the executive team most recently as the Chief Compliance Officer.

Direct owners and executive officers


Name Entity Date acquired Ownership Employer ID
Darrell Ward Cain Chairman 1 May 2005 75% - 100% 1256055
Gary Vern Moore Chief compliance officer 1 May 2005 Other 4538570
Paul Douglas Lyons Vice president 1 Jan 2006 Other 4900585
Arthur Haag Sherman Ceo and cio 1 Feb 2015 Other 2813406
Tectonic Services Llc Manager 1 Feb 2015 Other 47-3008816
Michelle Bartoe Baird Chief financial officer 1 Feb 2015 Other 6593413
Tectonic Holdings Llc Member 1 May 2015 75% - 100% 47-3001443
Nancy Elaine Dixon Chief compliance officer 1 Feb 2017 Other 2806279
David Lee Hunt Chief compliance officer 1 Mar 2019 Other 2772872
Inc. Tectonic Financial Parent company 1 May 2019 75% - 100% 82-0764846
Nancy Elaine Dixon Chief compliance officer 1 Sep 2019 Other 2806279

Indirect Owners

The SEC currently registers 5 indirect owners.

Name Entity Date acquired Ownership Employer ID
Darrell Ward Cain Chairman/manager 1 Feb 2015 75% - 100% 1256055
Arthur Haag Sherman Member/manager 1 May 2015 50% - 75% 2813406
Arthur Haag Sherman Trustee 1 Dec 2016 Other 2813406
The Sherman Family Irrevocable Trust Member/manager 1 Dec 2016 25% - 50% 81-6994164
Millette Lewis Sherman Trustee 1 Dec 2016 Other 6812829

Based in Plano

The principal office where Tectonic Advisors LLC performs its advisory services is located at 6900 North Dallas Parkway, Plano, TX 75024, which is also the mailing address of the firm. An additional office of the firm is in Houston, TX. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 713-250-4200 or by fax 713-250-4296. The normal business hours are 8:30 a.m. - 5:00 p.m. on Monday - Friday. You can find more information about the New York firm at 3to1fmr.com.