S E P A R A T E L Y M A N A G E D A C C O U N T S

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1 S E P A R A T E L Y M A N A G E D A C C O U N T S Member FINRA/SIPC

2 You can never cross the ocean until you have the courage to lose sight of the shore Christopher Columbus

3 A PERSONALIZED PORTFOLIO FOR YOUR PRESENT AND FUTURE NEEDS With the help of Thompson Davis & Co, you can invest in a diversified, professionally managed portfolio while pursuing a stated investment objective that suits your financial needs Your money is a reflection of your hard work Your savings represent your promise to help a loved one attend college, your dream of comfortably retiring or your hopes for beginning a new chapter in your life Thompson Davis & Co offers a variety of investment choices when selecting your portfolio s composition We understand every individual has a unique financial situation, and we provide you with options to fit your present and future needs while considering your objectives, tolerance for risk and time horizon We provide guidance and experience to help you select an approach appropriate for you Our professionals work extremely hard to specifically tailor our clients portfolios to their individual needs TD & Co offers its clients a variety of investment strategies ranging from aggressive growth to capital preservation We can help guide you through life s investment complexities while offering a simple, hands-on approach to your financial needs 3

4 T H E I M P O R T A N C E O F p r o f e s s i o n a l m a n a g e m e n t We believe individual investors typically tend to be aggressive when the market has been experiencing favorable conditions for an extended period and very conservative after a big market correction; therefore, these investors often have not done as well as they could have Over the past 20 years, the average investor s return has been less than half of that the equity market experienced 1 Why? We attribute this to emotional investing At Thompson Davis & Co, we follow a disciplined process in an effort to eliminate emotions and make decisions based on rational investment strategies Instead of fearing the market s daily volatility, we stay focused on our clients long-term goals and use our proprietary research and resources to make sound decisions Excitement Thrill Optimism The Cycle of Emotional Investing Elation Prices are high; Maximum financial risk Anxiety Denial Desperation Fear Prices are low; maximum financial opportunity Panic Despondency Optimism Relief Hopeful While the chart shows how successful investors recognize points of risk and capitalize on these opportunities, many individual investors follow the path of emotional investing rather closely by buying high and selling low instead of following one of the most important rules of investing: buy low, sell high During boom periods, many investors tend to exude excitement and consequently, pay top dollar to participate in the market When prices begin to experience a decline, they become anxious and fearful, and may even sell off their holdings and lock in their losses This manner of investing can seriously hurt an individual investor s bottom line Thompson Davis & Co advisors attempt to break this cycle of emotion by using objective data and a consistent process to guide investors in making financial decisions 4 1 JPMorgan Chase & Co Guide to the Markets - Diversification and the Average Investor (nd): n pag Rpt in MARKET INSIGHTS Np: np, Print

5 The only man who behaves sensibly is my tailor; he takes my measurements anew every time he sees me, while all the rest go on with their old measurements and expect me to fit them - George Bernard Shaw A CUSTOM - TAILORED APPROACH TO INVESTING The complexities of investing can range from having overlapping securities in multiple accounts to being heavily concentrated in an industry or single company At Thompson Davis & Co, we address such challenges and offer you professionally managed portfolios customized to meet your particular needs We will help guide you to reduce your exposure to a single sector, increase diversification and focus on other needs you may have Determining your risk tolerance while taking into account factors such as age, income level and financial objectives is a key factor in developing your investment philosophy After assessing your current financial situation and investment goals, Thompson Davis & Co has the ability to begin building a portfolio with a composition unique to your specific needs Whether your investment goal is growth, income or capital preservation, you can choose from variety of options to pursue your objective Thompson Davis & Co provides you access to your investment advisor who specializes in a full spectrum of asset classes and strategies, including: US and international securities Equity: small, mid- and large-cap stocks Growth and value stocks Developed and emerging markets Fixed income securities: corporate, government, municipal and agency issues 5

6 benefits of our separately mana g ed accounts pro g ram T ransparency & O wnership S ervice PROF E S SIONA L M A NAG E M E N T You will receive monthly statements from Pershing LLC, a subsidiary of The Bank of New York Mellon and the independent custodian of the assets in your account Therefore, you will always know which securities are held in your portfolio and the management fees associated with it With this direct approach, you own each individual security knowing that buy and sell decisions are based upon strategy and not affected by the redemption needs of anyone except your personal financial requirements You will work closely with and can speak with your financial advisor at any time to discuss your portfolio or general economic concerns You will be provided competent, responsive and quality service with full access to the cash proceeds from the sale of securities in your account Separately managed accounts provide you with experienced portfolio managers who make the day-to-day investment decisions on your behalf while considering your goals and the restrictions you may or may not have placed upon particular securities, industry sectors and other investment strategies

7 R i s k M a n a g e m e n t It is our belief that mutual fund managers focus their concerns on beating their benchmarks whether those benchmarks show a positive or negative return At TD & Co, our goal is to create absolute performance to not only outperform our benchmarks, but to also provide you with positive returns over the life of your investment with our firm In the case that the market undergos unfavorable conditions, we have the ability and flexibility to preserve capital by going to cash STOP-LOSS ORDER refers to an order placed to sell a security when it reaches a certain price It is designed to limit an investor's loss on a security position, which ultimately helps to prevent emotional decision making whereas a mutual fund typically must be 90% invested within the market regardless of good or bad conditions We actively manage SMAs in such a fashion that it takes into account the current market and economic landscape We have the ability to provide downside protection using tactical stop-loss orders on the portfolio value and/or individual portfolio securities For instance, with specific holdings, TD & Co attempts to employ stop-loss levels to limit the downside Generally, the amount of downside stop-loss triggers are determined by the price of the security, but in most cases will range from 7-15% Inevitably, there are times when we set a stop-loss and the price of the stock drops to the specified price or through it As the discipline requires, the position is sold and sometimes it then rebounds, but Buy & Place overall, we believe stop loss levels help minimize risk Stop-loss Order In this rebounding case, we can always buy the stock STOP & Sell back if we believe the stop-loss STOP proved to be the wrong move In Avoided Loss addition, stocks can, will and do from time to time open up after halts or open at prices below our stops there is no guarantee that we can cap a loss in these instances 8

8 Whether you think you can or you think you can t, you re right - Henry Ford Frequently, we set stop-loss levels rather than actual stop loss orderswe look at this method of stop-loss levels as something similar to insurance, and like insurance, you are glad to have it when you need it SEPARATELY MANAGED ACCOUNTS ACCOUNT MINIMUM Typically $100,000 ACCESS TO PROFESSIONAL ADVISOR PORTFOLIO CUSTOMIZATION Yes Available Investors may restrict specific industries or securities from their portfolio WITHDRAWALS/ REDEMPTIONS Unlimited LIQUIDITY Trades may take up to 3 business days to complete depending on the securities redeemed OWNERSHIP Investors own each individual security within account Sell decisions are based upon investor goals and are not affected by the redemption needs of anyone except the individual account owner Tax-Efficiency Financial advisor may sell securities to create specific tax consequences depending upon investor s financial situation 9

9 I S T H O M P S O N D A V I S R I G H T F O R Y O U? Learn more about Thompson Davis & Co s expertise UNBIASED JUDGMENT & EXCEPTIONAL SERVICE At Thompson Davis & Co, we base our investment decisions on our objective, in-house proprietary research Our firm s principals have over 100 years of combined investment and money management experience The Thompson Davis & Co team manages portfolios by drawing on its expertise in capital markets analysis and portfolio construction In addition, we provide discretionary, highly disciplined investment strategies designed to meet a wide range of investor risk/return objectives Over time, we believe our discipline and strategy have been the keys to our success in rapidly changing markets As our client, you can count on us to treat your capital as we would our own and be accessible when you need us You will not have to battle an automated phone system to get a real person on the line and will have access directly to the portfolio manager making the investment decisions At Thompson Davis & Company, we trust our disciplined and focused investing process enough to follow it By aligning our interests with our clients, we are all stakeholders in the pursuit of better returns through intelligent investing A NAME YOU CAN TRUST Thompson Davis utlizes the services of Pershing LLC, the industry s largest provider of clearing, custody and business solutions to financial organizations Pershing is a subsidiary of The Bank of New York Mellon and considered one of the leading names Wall Street has turned to for reliable, cost-effective securities services Pershing is a member of Securities Investor Protection Corporation (SIPC ) Coverage, which means securities in clients account are protected up to $500,000 (of which $250,000 can be for claims for cash awaiting reinvestment) Explanatory brochure available upon request or at wwwsipcorg In addition to SIPC protection, Pershing offers coverage in excess of SIPC limits from specific underwriters at Lloyd s This coverage includes an aggregate loss limit of $1 billion for eligible securities for all client accounts and a perclient loss limit of $19 million for cash awaiting investment 10

10 Thompson Davis & Co Headquartered in the historic Barret House, built in South Fifth Street PO Box 1854 Richmond, VA TOLL FREE TEL FAX WWWTHOMPSONDAVISCOM SECURITIES OFFERED THROUGH THOMPSON, DAVIS & CO, INC (TD & CO) THOMPSON DAVIS & CO IS A SEC REGISTERED INVESTMENT ADVISOR TD & CO USES PERSHING, LLC, A SUBSIDIARY OF THE BANK OF NEW YORK MELLON CORPORATION, MEMBER FINRA/SIPC AS OUR CLEARING FIRM THOMPSON DAVIS & CO, ITS AFFILIATES, AND THEIR LICENSED PROFESSIONALS DO NOT RENDER TAX OR LEGAL ADVICE PLEASE SEE OUR SEC FORM ADV FOR IMPORTANT DISCLOSURES AND INFORMATION ABOUT OUR SERVICES Past investment performance does not guarantee, imply, or indicate future results The value of an investment will fluctuate so that when sold, it may be worth more or less than the original cost The information contained in this brochure should not be considered an offer to sell, solicit, or offer to buy any security The opinions expressed in this brochure should not be regarded as tax, legal or investment advice, or recommendations for, any person All opinions, estimates, and figures are provided for informational purposes only Registration of an Investment Advisor does not imply any level of skill or training The oral and written communications of an Advisor provide you with information about which you would use for determining whether to hire or retain an Advisor Additional information about Thompson Davis Asset Management is available on the SEC s website at wwwadviserinfosecgov Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client s investment portfolio No client or prospective client should assume that any information presented in this brochure serves as the receipt of, or a substitute for, personalized individual advice from their advisor or any other investment professional

11 PERSONALLY INVESTED IN YOUR SUCCESS THOMPSON DAVIS & Co THE BARRETT HOUSE 15 SOUTH 5TH STREET RICHMOND, VA WWWTHOMPSONDAVISCOM