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Investment Programs

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To see our eight investment programs, click here.

Based on your long-term investment objectives, HCM offers a variety of portfolio management programs. With people living longer than ever, the need for higher investment return is obvious. Returns from bank CDs, fixed annuities, bonds, or passive buy-and-hold strategies may not be sufficient. We believe that active professional money management is the right choice for many investors. As a client of HCM, you can expect a high level of commitment and service. We do not have custody of client assets. All Funds remain titled in your name at the fund, insurance company, bank or trust company that is your custodian. We are fee-based to avoid possible conflicts of interest. We employ mutual funds, indexes, and approved variable annuities as investment vehicles. These vehicles provide for diversification with low trading costs. In our wrap-fee program we trade mutual funds at the institutional level to reduce costs and can access more than 1000 funds. This large universe has been reduced recently due to fund trading restrictions and redemption fees charged by the funds. And we can manage client accounts within existing 401(k) accounts. Clients are updated with trade confirmations from the custodian and quarterly statements, and clients communicate with us as often as they want.

HCM has invested significant time and resources to develop new riHCM's money picturesk-management programs to help our clients. Our approach is to actively-manage investment portfolios. It takes effort, skill, time, and can be rewarding. HCM, is a leading risk-management firm and we stand apart from others advisors due to our math and science beginning that enables us to conduct original investment research. Most other advisors employ strategies that are available in the open literature and very few are original. In contrast, HCM has developed original investment strategies based on years of original research. Our research is not available on wall street, or main street.

HCM's unique NEW ADVANCED TECHNOLOGY and several investment programs allow each client and their financial advisor to customize their portfolio. We look forward to working with you to meet your financial goals. We employ our proprietary disciplined investment process to manage portfolios of mutual funds, index funds, sector funds, and approved variable annuities. We seek to be fully invested when markets go up, and to protect capital in periods when markets go down. We constantly monitor a large number of domestic and international funds and try to select winning portfolios. Our goal is to buy funds that are advancing and sell funds that are declining.

HCM offers active investment programs for: approved variable annuities and for our mutual fund wrap programs. Each of our programs employs Active Asset Allocation. (In addition, we can usually manage accounts within participant 401(k), 403(b) of 457(b) government retirement plans. For programs inside retirement plans, go to our retirement plan page, see button above.)

HCM's programs are defined and distinguished by:

  • a particular fund universe available in an approved variable annuity contract, or a particular mutual fund company like ProFunds and Rydex,
  • a particular institutional-level custodian that may have a complete supermarket of funds available where HCM can purchase thousands of funds for clients at NAV, or
  • a specific asset class of fund(s); gold is an example.

Our programs employ various asset classes including: domestic, index, sector, bond, international, style box, precious metal or gold, money market, and/or contrary funds, depending on market conditions and strategy selected. The objective of each strategy is long-term (5+ years) capital appreciation. Other programs can be tailored to meet your specific needs as our proprietary investment technology is designed to be general and universal. So if you have specific investment requirements that are not covered by the programs listed below, please contact us and we may be able to tailor a new strategy for you. An ETF strategy is now available.

Generally, in the aggressive and moderate programs, we try to limit fund selection to funds without redemption fees and with few trading restrictions. For the ProFund and Rydex programs the portfolios are limited to either ProFund or Rydex funds and are usually employed when Harloff Capital is a third party money manager through a broker dealer representative or registered investment advisor representative. The gold strategy employs either Rydex or ProFund's precious metal funds. Further clarification is provided below.

Our eight (8) programs are:

  1. Approved Variable Annuity-Asset Allocation at
    American Skandia, Nationwide, or Security Benefits:
     Suitable for the client who understands and accepts risk inherent in up to 100% exposure to either U.S. or international stocks, and who understands and accepts the risk of up to 100% exposure to an “inverse” fund during stressed markets. Portfolios usually consist of 1 to 6 positions. Invests in funds offered by a specific variable annuity insurance company that is also the account custodian. HCM may be a third party investment advisor (TPIA) through a bd or ria.
  2. Aggressive Growth-Asset Allocation at HCM's custodian: Suitable for the client who understands and accepts risk inherent in up to 100% exposure to either U.S. or international stocks, and who understands and accepts the risk of up to 100% exposure to an “inverse” fund during stressed markets. This strategy generally invests in a wide variety of funds and fund families. Portfolios usually consist of 1 to 6 positions. HCM may be a TPIA through a bd or ria.
  3. Moderate Growth-Asset Allocation at HCM's custodian: Suitable for the client who understands and accepts risk inherent in up to 100% exposure to either U.S. or international stocks, and who understands and accepts the risk of up to 50% exposure to an “inverse” fund during stressed markets. This strategy generally invests in a wide variety of funds and fund families. Portfolios usually consist of 2 to 8 positions. HCM may be a TPIA through a bd or ria.
  4. ProFunds-Asset Allocation at approved custodian: Suitable for the client who understands and accepts risk inherent in up to 100% exposure in one or more sector, style-box, index fund, and international stock funds and accepts the risk of up to 100% exposure to an “inverse” fund during stressed markets. This strategy generally invests in Profund's funds. Portfolios usually consist of 1 to 8 positions. HCM may be a TPIA through a bd or ria.
  5. Rydex –Asset Allocation at approved custodian: Suitable for the client who understands and accepts risk inherent in up to 100% exposure in one or more sector, style-box, index fund, and international stock funds and accepts the risk of up to 100% exposure to an “inverse” fund during stressed markets. This strategy generally invests in Rydex funds. Portfolios usually consist of 1 to 8 positions. HCM may be a TPIA through a bd or ria.
  6. Blend of Aggressive and Moderate Growth-Tactical Asset Allocation: Suitable for the client who understands and accepts risk inherent in up to 100% exposure to either sector, style-box, index funds, and international stocks and who understands and accepts the risk of up to 100% exposure to an “inverse” fund during stressed markets. This program generally invests in a wide variety of funds and fund families that may be positively or negatively correlated with each other. Portfolios usually consist of 1 to 8 positions. HCM may be a TPIA through a bd or ria.
  7. ETF - Asset Allocation Program: Suitable for the client who understands and accepts risk inherent in up to 100% exposure to any sector, style-box, index, and international ETF and who understands and accepts the risk of up to 100% exposure to an “inverse” ETF during stressed markets. ETF’s may be leveraged at the ETF level. Portfolios usually consist of 1 to 8 positions. HCM may be a TPIA through a bd or ria.
  8. Gold/Precious Metal - Asset Allocation at HCM's custodian or other approved custodian: Suitable for the client who understands and accepts risk inherent in up to 100% exposure to gold/precious metal funds and money market funds during stressed gold markets. This strategy generally invests in Rydex or Profund gold/precious metal and money market funds. Due to the high volatility of gold, clients are recommended to invest only about 20 percent of their total investment portfolio in this gold strategy. HCM may be a TPIA through a bd or ria.

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Past returns do not insure future results. Inherent in any investment is the potential for profit and loss. Prior trades for the past 12 months are available upon written request.