We primarily use Exchange traded funds (ETFs), options and stocks, but we also use some closed end funds and open ended mutual funds. In addition, we utilize some bonds, and Tresury Bills (T-Bills) for cash holdings.
There are times when these asset classes can be important sources of added return, and can potentially reduce overall portfolio risks due to their low correlation with traditional assets, such as stocks and bonds. When our technical models suggest, we will invest modest amounts of client funds in such alternative asset classes as commodities (energy, agricultural, precious/base metals), foreign currencies, and real estate. These products present unique risks and we will only recommend them when suitable to the investor.
Yes. However, we often favor diversified equity investment vehicles. We believe gaining exposure to an entire sector, as opposed to one or a limited number of stocks in that sector, will likely deliver superior risk-adjusted returns. Rest assured that if you have individual stock positions that you would like us to manage as part of your portfolio, we can apply many of the same value-added investment management techniques that we employ with other investment vehicles. Often, important considerations such as unrealized capital gains justify maintaining long-term individual stock holdings.
We use a variety of strategies to manage risk in the portfolio. In terms of portfolio holdings, inverse ETFs, covered call options, protective put options, and collars are all ways to mitigate the investment risk of other holdings. A strategy that hedges risk is NOT the same thing as a hedge fund. See below.
Options involve certain risks and are not suitable for all investors. Copies of the Options Disclosure Document are available from New Harbor Financial Group at (978) 537-7701.
We generally do not use illiquid investments such as hedge funds and limited partnerships. Many hedge fund investors learned that not only can these kinds of investments suffer from significant declines in value, but investors may be restricted or limited from withdrawing their money during times of market turmoil.
It’s no secret that consumer faith in the financial services industry has been severely tested. We get it. What we don’t do is buy into the hype or spread falsehoods. Our founders are engineers by training, and they built their fact-based analytical discipline into the core of our practice. We see the market realities as they are. We promise to conduct ourselves with honesty and integrity. Our culture is based on implicit trust and we strive to earn the continuing trust of our clients.
In theory, perhaps. In practice, we don’t think so. There will be an end to this bubble, there always is. We work tirelessly, every day, to help our clients protect their assets, knowing that the bubble will eventually burst.
During times of historically extreme valuations, and heightened volatility, it is important to stay defensively allocated in your portfolio. At New Harbor, our goal is to tactically expose your investments to risk when that risk is likely to be rewarded with durable gains that you can keep. Our skill is to align the portfolio with conditions in the market at any given time. When markets reach psychological frenzied highs or lows, it’s important to have an investment manager that has a system based on data and facts, and does not follow the herd. Call us and we will go into more detail.
New Harbor Financial Group is 100% owned by us. We answer only to you.
We charge a fixed-percentage based on the amount of assets in managed accounts. Due to economies of scale, we charge lower-percentage fees for larger accounts. Fees are clearly reported and automatically debited from the client’s account once per calendar quarter.
In light of our fee-based model, our compensation for managed accounts is independent of how many or how few transactions are executed. Simply put, clients can take comfort in the fact that we never have a financial incentive to create unnecessary or inappropriate activity within their accounts.
Our fees are very transparent. We want our clients to be able to continually compare our fee against the value we add to their financial picture. If a client feels they are not getting sufficient value to justify our fees, they are free to end their relationship with us at any time, without any penalties or constraints.
Integrity and transparency are very important to us. Your account is protected from fraudulent activity through a variety of checks and balances. We use an independent third-party custodian and recordkeeper to track, audit and report on all investments. Deposits to and withdrawals from all client accounts are made directly to them—not us.
As a federally-registered investment adviser, New Harbor Financial Group is directly regulated by the Securities & Exchange Commission.
Finally, you have complete access to all your account information 24/7. See below.
Clients can access their accounts online 24 hours a day, 7 days a week, through our secure internet login site.
You will receive electronic trade confirmations of any transaction and monthly statements showing month-end portfolio values, changes in value since prior month, summary of any transactions conducted during the month, and a detailed list of each investment holding in your account. For those clients who prefer paper of confirmations and statements, we offer that as an alternative.
At least once a year, and as often as requested by a client, we provide detailed performance summaries which show, both graphically and numerically, the actual performance of a client account (net of our fees). This report also compares your account performance relative to appropriate benchmarks, so you can assess whether we are delivering the value you expect from us.
We take an active approach to managing client assets. We monitor the investment markets and investment positions held in client portfolios several times a day, every day.
Typically, funds will be available to you within a few days of your request. We generally use highly liquid investments that do not have redemption restrictions, and our custodian is able to process withdrawal requests from such investments very quickly.
New Harbor Financial Group, LLC
Founded in 2005, New Harbor Financial Group is a privately owned investment advisory firm that provides risk-managed investing and financial guidance to individuals, families and institutions.
New Harbor Financial Group offers fee-based asset management services to individuals, families and institutions and we advocate a disciplined investment strategy.
New Harbor Financial Group’s team of Certified Financial Planner™ professionals provides individuals, families, and institutions with access to a full range of financial planning and guidance services.