Apply to Harloff Capital Management to Professionally Manage your Portfolio, or set up a new 401(k) company plan with our managed option!

Value proposition: Harloff Capital has a passion for investing. Dr. Gary J. Harloff, a Ph.D. AeroSpace Engineer, founded the firm in the space age. Harloff Capital employs new original investing technology to take care of investments in a way that clients feel comfortable.

       Site Map

Harloff Capital Management is located at 795 Sharon Drive, Suite 226, Westlake, Oh 44145. Phone is 440-871-7278 and web page is www.harloffcapital.com. Westlake is in North East Ohio in Cuyahoga County and a suburb of Cleveland.

With Active Investing and Risk Management Strategies, Harloff Capital Management serves high net worth individuals and institutions.

AAII presentations... "Active Investing Wealth Management for High Net Worth Individuals", based on Dr. Harloff's new book.

How can we help you? / Harloff Capital’s Beginning / Problems for investors / Solution / Figure 1a & 1b

Investors under-perform S&P500 by about 8% per year over 20 years / Historical Returns / Figure 2a & 2b

Layman’s explanation of HCM strategy / Table 1 / Disclosure / Education / Free consultation request

Overview of our Money Management Service <click here>

How can we help you?

Move your money to Harloff Capital today and relax with HCM managing your portfolio.
Move your 401(k) rollover or IRA to a HCM managed IRA account in your name or consolidate your several accounts to a single HCM managed account.

In addition to working directly with clients, HCM also works with financial planners, CPAs, lawyers, and stockbrokers by managing their client’s portfolios. Client-centered financial professionals advise clients in selecting a money manager. For these financial professionals, HCM has a fully disclosed fee-sharing arrangement, where referred clients pay no more fees than direct HCM clients. Ask your financial representative to apply to Harloff Capital Management to be a Third Party so HCM can manage your account without you leaving your representative.

Harloff Capital’s Beginning!

Gary Harloff’s passion for money management was born in 1970. He was working as an engineer at a jet and rocket engine company in S. Florida when a co-worker said that nobody could model the stock market. Gary responded to this personal challenge and began a quest to understand and model the stock market. In 1981, he formed Harloff Inc. to more formally conduct modeling studies of the stock market. In 1994, he registered Harloff Capital Management as a Registered Investment Advisor. Gary worked in the Aerospace and energy engineering areas from 1968 to 1995 in research and development. He worked on missiles and aircraft propulsion and aerodynamics, uranium production and enrichment, and other areas. He worked at NASA-Cleveland in propulsion aerodynamics and computational fluid dynamics for a decade. He earned B.S., M.S. and Ph.D. degrees in Aerospace engineering and is an associate fellow in the American Institute of Aeronautics and Astronautics. He has two patents. He now applies his quantitative analytical skills to money management to benefit HCM clients. He is a speaker for the American Association of Investment Advisors and is on the steering committee of the local Cleveland Chapter. He has an investment advisors license, series 65. Eve Eacott, a B.S. electrical engineer and his daughter, works with Harloff Capital Management to provide additional skills to benefit HCM clients. Gary takes great pride in his family-run company and strives daily to bring the benefits of rocket science to you. HCM has invested significant time and resources to develop new risk-management strategies to help you. HCM's approach is to actively-manage investment portfolios. It takes effort, skill, time, and can be rewarding.

Many investors need professional investment help. Yet many investors receive only 4 hours per year advisor-help to purchase long-term-rated-funds; or only employ an asset-allocation (buy-and-hold) service.

Solution

One way to improve investment returns may be to employ a professional active or tactical money manager to really manage your portfolio. Investing with a disciplined analytical strategy is difficult for most investors. Actively managing portfolios involves full-time attention to return and risk. We think investments should be actively managed, just like all other areas of our lives such as: education, family, job, and retirement. Clients may benefit because of HCM’s unique capabilities and skill. Harloff Capital Management differs from other investment firms in that we:

· have our own original quantitative investment strategies, not available to Wall or Main Street. HCM Strategies are developed by a Ph.D. over many years. Rocket Science helps!	· are fee-based (no commissions) and independent.
· are specialists in sectors, countries, index fund investing with both long and short funds.	· manage client portfolios with changing markets.
· invest along side clients where practical. Why work with an advisor with no “skin” in the game?	· manage tax deferred variable annuities with no investment limit.
· have a track record (see Figures 1b, 2a, and 2b). Few sales-oriented advisors have their own track record.

Figure 1a & 1b

Figure 1a (left above). The average equity fund investor return minus S&P500 return for 20 years ending 12-31-05 and 12-31-07. Source: average of Dalbar QAIB 2006 and QAIB 2008.

Figure 1b (right above). HCM usually outperforms average investor return. HCM [strategy return – S&P500] for average of 8 programs ending 7-31-2008 minus [average investor return – S&P500 return] average ending 12-31-2005 and 12-31-2007. Single accounts are used for each HCM program and invested investors received similar returns in each program. Past performance does not insure future performance. See Figure 2b for these 8 HCM programs and average investor equity fund return. Table 1 presents the HCM data employed.

Investors under perform S&P500 by about 8%/ year over 20 years

Dalbar Inc. of Boston, Mass. reports investor returns for up to 20-year periods. Average equity fund investor return, for the two sets of Dalbar data (QAIB 2008 ending 12-31-07 and QAIB 2006 12-31-05), is well represented by a linear line that indicates a loss relative to the S&P500 index of about –0.5% per year, see Figure 1a. In the figure the S&P500 annualized return for each period is subtracted from the annualized return for the same period in an attempt to take out the investing landscape or “the market” effect. The average equity fund investor beats the S&P500 for time periods less than 6 years (positive relative return), as shown in Figure 1a. This over-performance by a few percent annually (relative to the S&P500 index) may be due to successfully following hot sectors. However, average equity fund investors under-perform the S&P500 index, for longer periods than 6 years, possibly due to emotional buying high and selling low, and the difficulties caused by bear markets. This under performance is a whopping 8%/ year over 20 years, see Figure 1a. The Dalbar studies also indicate that the average investor holding periods, ending 12-31-07, are between 3 and 4 years. It is not clear to this writer if sales loads paid directly to brokers are included in the Dalbar study results. If not included, the average investor returns would be much less than reported by Dalbar.

Historical returns

To see how HCM performance compares to average equity fund performance, the S&P500 annualized return is subtracted from annualized return, see Figure 1b. This type of presentation assumes that subtracting out the yearly S&P500 index returns enables one to compare different investment programs, even over different time periods, on the same graph. Eight HCM programs are averaged in Figure 1b. HCM’s net performance, for all 8 programs of Harloff Capital, is listed in Table 1. HCM’s performance beats the average equity investor by as much as 17.7% per year for one year and 9.5% for two years. Six of the eight HCM programs listed beat the S&P500 performance since inception, see Table 1. HCM under-performed the S&P500 in years 4 to 7 during the bear market from 2000 to 2003. We found that the 2000-2003 bear market high volatility challenged our analysis. Over the past few years we have improved our analytics to hopefully perform better in volatile bear markets. Better performance is evident in the bear market that started in late 2007. Thus, our clients should benefit from lessons learned during the 2000-2003 bear market.

Figure 2a illustrated HCM’s longest program, Rydex aggressive global program. It beats the average investor equity fund return for all periods up to 15 years where the HCM data ends. Net performance, relative to the S&P500, is also shown Fisher Investments Global Total Return Program, managed by Fisher Investments Private Client Group, for 1 to 10 years ending 6-30-06 before the start of the 2007-2008 bear market. HCM results are higher than Fisher Investments global program for 1, 2, and 3 years, similar for 4 years, and HCM annualized net returns are higher for 10 years. The periods of HCM underperformance compared to the Fisher Investments global program are in the 2000-2003 bear market (5 to 8 years in the past from 7-31-08). (Source: K. Fisher, The Only Three Questions That Count, Wiley, 2007, p. 405). The eight programs are presented separately in Figure 2b.

Figure 2a & 2b

Figure 2a (left above). HCM Rydex aggressive program or strategy tracking account net return beats average investor return and recently beats Fisher Investments Global Total Return. Table 1 presents the HCM data employed. The average of equity fund investor return minus S&P500 return for 20 years ending 12-31-05 and 12-31-07. Source: Dalbar QAIB 2006 and QAIB 2008. Fisher Investments Global Total Return Global Program from 7/01/95 to 6/30/06 (Source: K. Fisher, The Only Three Questions That Count, Wiley, 2007, p. 405). HCM single account for program and invested investors received similar returns in each program. Past performance does not insure future performance.

Figure 2b (right above). HCM strategy return – SP500 for 8 programs ending 7-31-2008 minus average investor return ending 12-31-2005 and 12-31-2007. Table 1 presents the HCM data employed. This presentation assumes that the market effect is removed by subtracting the S&P500 return. Single tracking accounts are used for each HCM program and invested investors received similar returns in each program. Past performance does not insure future performance.

Layman’s explanation of HCM strategy

It is helpful to provide a layman’s explanation of HCM strategy techniques to clients and potential clients so they feel comfortable with HCM’s new technology. Harloff Capital Management has developed original quantitative strategies with a goal of removing emotions from money management. This effort has taken decades of original research by a Ph.D. and is not available on Wall or Main Street. Our goal is to have original analytical investing capability to produce profits in any type of market in any part of the world. Over the years, we have reviewed many of the commonly available Wall and Main Street approaches (e.g. chart reading and classical “technical analysis”) and have rejected them due to their lack of objectivity and empiricism. We have developed several new original computer programs to measure absolute price momentum and quantify sector, index, and country rotation. We manage client portfolios by managing return and risk, and portfolio beta. Our strategies are opportunistic and not relative to a style box or index. We manage client portfolios for absolute price appreciation potential.

Table 1

Harloff Capital Management annualized net return and S&P500 annualized return, ending 7-31-08. Notice that six of eight HCM programs beat S&P500 since inception. Disclosures are below this table.

	program #	year-to-date (1/1/08 - 7/31/08)	%	%	%	%	%	%	%	%	HCM	S&P500
years - ending 7/31/08			1 year	2 years	3 years	4 years	5 years	7 years	10 years	15 years	since	since	incep
S&P500		-13.69%	-12.91	-0.36	0.89	3.56	5.05	0.65	1.24	7.2	incep	incep	date
HCM Rydex aggressive	1	17.42%	13.94	15.48	4.97	6.16	5.73	1.43	3.86	6.9	8.74	7.23	7/23/90
HCM aggressive	2	6.58%	7.74	7.18	-4.64	2.23	2.11	-2.65	2.08		3.07	7.51	5/20/94
HCM Rydex & ProFunds blend	3	8.90%	6.41	9.23	-1.31	3.72	2.9	-2.97	2.07		1.91	2.69	8/18/97
HCM VA Security Benefit aggressive	4	9.47%	5.69	11.22	3.45	6.48	5.57				8.68	7.32	4/16/03
HCM VA Nationwide aggressive	5	7.14%	6.69	12.35	4.32	7.06					7.65	3.04	5/18/04
HCM Rydex moderate	6	10.36%	5.69	11.08	2.91						7.16	3.47	8/10/04
HCM VA Nationwide moderate	7	7.03%	4.31	11.11	4.42						6.00	3.57	9/13/04
HCM VA Security Benefit moderate	8	6.95%	4.53	9.79							3.31	0.08	12/22/05
HCM average		9.23%	6.88	10.93	2.02	5.13	4.08	-1.40	2.67	6.90	5.82	4.36

HCM program notes:
#1: HCM Rydex aggressive growth actual tracking account: GJHJT100 open Invesco custodian 7-23-1990 and merged into FT custodian 12-23-2003, open F/T custodian 2-7-1994, Rydex funds focus 12-9-2003, merged into TDAmeritrade custodian 8-18-08;
#2: HCM aggressive growth actual tracking account: GHSHJT200 open TCA custodian 5-20-1994, open F/T custodian 4-11-2000, merged TCA custodian into F/T custodian 4-24-2000, Profunds funds focus 10-11-2002, merged into TDAmeritrade custodian 8-18-2008;
#3: HCM Rydex & Profunds blend actual tracking account: ES-400 open TCA custodian 8-18-1997, open F/T custodian 4-18-2000, blend of Profunds and Rydex funds starting 12-9-2003, merged into TDAmeritrade custodian 8-18-2008;
#4: HCM VA Security Benefit custodian aggressive growth actual tracking account: TG-80;
#5: HCM VA Nationwide custodian aggressive growth actual tracking account: MB-75;
#6: HCM Rydex custodian moderate growth actual tracking account: AB-70;
#7: HCM VA Nationwide custodian moderate growth actual tracking account: RB-27;
#8: HCM VA Security Benefit custodian moderate growth actual tracking account: MK-20.

Abbreviations in Table 1:
VA = variable annuity tax-deferred insurance sub-account with mutual fund options;
Incep = inception;
ind = individual.

Disclosure

Disclosure Statement: Harloff Capital Management (HCM), Harloff Inc., is a fee-based independent registered investment advisor with discretionary trading authority located in Westlake, Ohio. HCM's office is in North East Ohio, West of Cleveland in Cuyahoga County.

Performance disclosure: Performance is based on actual tracking accounts managed by HCM net of HCM management fees. Investors in respective programs in general obtained similar performance; individual returns could vary due to timing of investments and withdrawals, account start dates, and actual fees paid. Performance does not include custodial fees or transaction fees paid, if any. Typically there are little or no transaction fees since HCM trades at the institutional level. HCM performance includes reinvestment of dividends and other earnings. Performance of the S&P500 index illustrates material market and economic conditions and does not include dividends or other earnings. The inclusion of dividends or earnings would increase S&P500 performance results, and investors cannot directly invest in this index. The historical performance results of the S&P500 do not reflect the deduction of transaction, custodial charges, or investment management fees; the inclusion of these would decrease the indicated historical performance results. The volatility of the S&P500 and each managed program may differ. Different types of investments involve varying degrees of risk and there is no assurance that any specific investment will be profitable. HCM does not make any representation that it's programs (or strategies) will or are likely to achieve returns similar to those shown in the performance results in this presentation. HCM strategies invest in mutual funds and occasionally ETFs (Exchange Traded Funds). Information pertaining to any mutual fund or ETF that is a current component of HCM strategies or programs is set forth in each respective mutual fund or ETF prospectus, a copy of which is available from HCM. HCM reserves the right to trade different funds within its strategies.

Past performance may not be indicative of future performance. Therefore, no current or prospective client should assume that future performance would be profitable, or equal to any corresponding historical index. The S&P500 composite index is a market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. Standard & Poor's chooses the member companies for the S&P500 based on market size, liquidity, and industry group representation. Included are the common stocks of industrial, financial, utility, and transportation companies. The historical S&P500 performance results are provided for comparison purposes only, so as to provide general information to assist clients or prospective clients in determining whether the performance of HCM's programs meet, or continue to meet, their investment objectives. It should not be assumed that HCM programs holdings would correspond directly to any such index. HCM strategies generally involve an above average turnover, which negatively impact any net after-tax return experienced by an individual client in a taxable account. For tax averse investors, HCM offers strategies inside tax deferred variable annuity (VA) accounts. HCM performance results do not reflect the impact of taxes.

In the event there has been a change in a client's investment objectives or financial objectives the client is encouraged to advise HCM immediately. Different types of investments and strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy will be profitable for a client's or prospective client's portfolio. All performance results have been compiled solely by HCM and have not been independently verified. Information pertaining to HCM's advisory operations, services, and fees are set forth in HCM's current disclosure statement and is available from HCM upon request. Data for HCM's and the S&P500 performance was calculated using DBCAMS financial software.

Education

Retirement and Job Change Educational Power Point Presentation

or

Various articles

Free consultation request

My assets available for investment: less than $100,000 $100,000 - $250,000 more than $250,000

Contact Information

First name: Last name:

Email: Re-type email:

Phone: Best time to contact me: Anytime Daytime Evening Weekend

City: State: AK AL AZ AR CA CO CT DE FL GA HI IA IL IN IA KS KY LA MA MD ME MI MS MO MN MT NE NY NV NH NJ NM NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY [select state] Zip code:

Tell us about your financial requirements and goals:

---

HCM's Mission: To help clients obtain long-lasting wealth.........Rocket Science Helps.

HCM's Money Management Programs: