Carolina Capital Advisors

Brian D. Johnson founded Carolina Capital Advisors, Inc. (CCA) in February 1996 to provide consulting services for sophisticated investment management, corporate, and government clients. 

CCA specializes in fixed income risk management and security valuation and has expertise in all aspects of financial modeling including term structure estimation, binomial trees, and Monte Carlo simulation.

In the mid-1980’s, Mr. Johnson designed, programmed, and implemented the partial derivative approach to fixed income risk management. This technique was the first return sensitivity based parametric application actively used to control risk in fixed income portfolios. 

An introduction to this approach can be found in the article “Managing Yield Curve Risk in an Index Environment”, published in the November-December 1989 issue of the Financial Analysts Journal.  This approach revolutionized the management of index, enhanced index, and active fixed income portfolios.  Mr. Johnson further extended the capabilities of this risk approach by designing and programming an integrated series of security valuation, prepayment, and optimization models.

Based on this technology, Mr. Johnson founded Lincoln Capital Management’s fixed income index business in 1986.  During the next 10 years, the business grew from zero to $13.4 billion in assets under management, making Lincoln Capital one of the largest managers of domestic fixed income index assets worldwide. 

As the vice president and principal responsible for Lincoln Capital’s index business, Mr. Johnson managed all 31 fixed income index portfolios.   During this 10-year period, Mr. Johnson executed in excess of $250 billion in fixed income transactions, across all domestic market sectors. 

This rare combination of practical investment management experience and  innovative financial modeling makes CCA uniquely qualified in the areas of investment consulting and financial analytics.