Potomac tops $4.4B AUM, expands SDBA for 401(k) plans

Potomac Fund Management reported assets under management exceeded $4.4 billion and introduced an expanded Self-Directed Brokerage Account program for employer-sponsored retirement plans.

The Bethesda, Maryland-based firm announced the figures and product update on June 1, 2026, noting the AUM total reflects more than a 3,000% increase since 2020. The company said growth has been driven by demand for its quantitative, risk-management approach.

The enhanced SDBA, delivered through Potomac Union, allows financial advisors to implement Potomac’s risk-managed strategies directly within 401(k), 403(b) and other workplace plans. Advisors can set up custom portfolio allocations or use OCIO-style model portfolios within an operational framework the firm described as streamlined for plan use.

Potomac has previously managed SDBA accounts via Potomac Union; the updated program is intended to broaden advisor access to participant assets held inside plan accounts and to simplify implementation and ongoing management.

Manish Khatta, Potomac’s CEO, stated, “The data shows that investors are better off with the guidance of financial advisors. Our SDBA program will put the power of the advisor in front of workplace retirement plan investors and their largest financial asset.” Jeff Goodnow, the firm’s chief growth officer, added, “Advisors shouldn’t have to choose between flexibility and efficiency. Our enhanced SDBA program allows advisors to customize portfolios and streamline implementation through turnkey models while operating inside the retirement plan environment.”

Potomac is an SEC-registered investment adviser that offers quantitative, risk-managed portfolio solutions. The firm said its strategies aim to reduce downside exposure while keeping clients invested for longer-term market opportunities. The company also included a standard disclosure that investing involves risk and that past performance does not guarantee future results.

The expanded SDBA capability arrives as more advisors look to coordinate retirement-plan holdings with other account types. Potomac positioned the update as a way to enable advisor-directed management in plans that already offer brokerage windows and to address the operational barriers that have limited SDBA adoption.