DRAKE & ASSOCIATES, LLC - Filing for Period Ending 12/31/2025

Why It Matters

The firm’s sizable AUM and high portfolio concentration illustrate the growing influence of mid‑size advisors on market dynamics and highlight concentration risk for investors.

Key Takeaways

• $418.75M AUM across 988 clients.
• 13F holdings total $502M, 65.55% concentration.
• Largest position: Fidelity Total Bond ETF, 918,570 shares.
• Offers eight ETF strategies plus IQ and PC products.
• Uses short sales, margin, and options in portfolios.

Pulse Analysis

Boutique advisory firms like Drake & Associates are reshaping the wealth‑management landscape, leveraging modest client bases to command hundreds of millions in assets. Their 13F disclosures provide transparency into holdings, revealing a pronounced tilt toward a few large positions. This concentration, while potentially boosting performance, also raises scrutiny from regulators and investors wary of liquidity shocks in tightly held securities.

Drake & Associates differentiates itself through an ETF‑centric investment framework, offering eight distinct strategies that span from capital preservation to aggressive growth. By integrating IQ and PC products alongside traditional equities and bonds, the firm tailors portfolios to varied risk tolerances. The selective use of short sales, margin financing, and options writing adds a layer of tactical flexibility, allowing advisors to navigate market volatility while seeking incremental alpha.

For the broader market, the firm’s approach underscores a trend toward diversified, technology‑enabled portfolio construction that balances cost efficiency with sophisticated risk tools. However, the 65.55% concentration in its top ten holdings signals a potential vulnerability; a sharp move in any of those positions could materially affect client outcomes. As advisory firms continue scaling, investors will increasingly assess both the strategic benefits of ETF exposure and the systemic implications of concentrated asset allocations.