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What investment
vehicles do you use? And why?
Mutual funds allow us to avoid
stock-specific risk such as a 20-50% overnight drop due to company earnings
reports or a negative news story.
If you are looking to consistently
beat the market and lower risk at the same time, the use of individual
securities becomes very questionable. For this reason we use mutual funds
as our investment of choice.
How can HCM make
money in down markets?
Real security comes from being
able to make money no matter what the market's are doing. Most investors
rely on a "buy and hold" approach which makes them dependent on the market
going up to make a profit.
Selling short, market timing and
strict risk management are tools that we use to keep your investments
working and responsive to actual market movements. There is no reason
to sit on particular investments if there are better opportunities elsewhere.
Where is my money
held?
Equity accounts are
held with First Trust/Datalynx. First Trust was founded more than 35 years
ago and First Trust money market deposits carry FDIC insurance up to $100,000.
First Trust is owned by Fiserv, Inc., a publicly held company (NASDAQ:
FISV). Fiserv serves more than 10,000 financial service providers worldwide
and in 1999 had revenue of $1.4 billion. First Trust specializes in retirement
account and taxable custodial accounts holding over $19.2 billion in assets
Why does HCM choose
to be paid by performance when no one else does?
Payment structure is a decision
made by each investment firm. From their perspective, getting paid
no matter what happens to you results in a better bottom line for them.
From our perspective, charging fees or commission regardless of performance
is not beneficial to our clients and it does not hold us accountable.
Why is HCM independent
instead of affiliated with a large brokerage firm or discount firm?
Independence leaves us free to
pursue the best investment strategies in the world. We are not limited
to what one firm has to offer.
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