Brookstone Discloses 499,602 Shares (64.57%) in LHA ETF
Rhea-AI Filing Summary
Brookstone Capital Management, LLC reports beneficial ownership of 499,602 shares of the LHA Market State Tactical Q ETF (CUSIP 26922B733), representing 64.57% of the class. The filing shows shared voting and shared dispositive power over those shares (499,602) and no sole voting or dispositive power. The reporting person is classified as an investment adviser (IA). The statement asserts the securities are held in the ordinary course of business and not for the purpose of changing or influencing control; Brookstone disclaims beneficial ownership of the accounts' securities. The filing is dated for the event 08/31/2025 and signed 09/03/2025.
Positive
- Material ownership disclosed: Brookstone reports ownership of 499,602 shares, representing 64.57% of the class.
- Clear power classification: The filing specifies shared voting and shared dispositive power for the full amount reported.
- Regulatory compliance: The statement includes the required certification that holdings are in the ordinary course of business.
Negative
- No sole voting or dispositive power: Brookstone reports 0 sole voting and 0 sole dispositive power, indicating no unilateral control recorded.
- Disclaimer of beneficial ownership: The filing states Brookstone disclaims beneficial ownership of the securities held in client accounts, which may limit interpretability of control.
Insights
TL;DR: Brookstone controls a supermajority economic position (64.57%) via shared power; this is a material ownership disclosure.
The filing shows Brookstone Capital Management holds 499,602 shares, equal to 64.57% of the ETF class, with shared voting and dispositive power but no sole powers. For investors, an ownership stake above 50% is material because it represents a dominant economic interest in the class of shares reported. The adviser classification and the written certification that holdings are in the ordinary course of business provide legal context for the disclosure but do not change the economic significance of the position.
TL;DR: A 64.57% holding with shared voting power creates a concentrated shareholder base with governance implications.
Although voting power is reported as shared rather than sole, the magnitude of the stake is likely to influence governance outcomes for the ETF class. The filing includes a disclaimer that Brookstone does not claim beneficial ownership of client account securities, and it affirms ordinary-course holdings. Still, from a governance perspective, the concentration warrants attention from other stakeholders and the issuer to understand decision-making dynamics and any potential conflicts.