Frequently Asked Questions:
Cut to the chase. What’s the “bottom line?”
We believe that the key to managing money is to attempting to manage
market risk. We try to preserve your money when we believe the risk
of loss is high.
I can do a cost: benefit analysis, what are some benefits?
recent bear market has shown that active money management can out perform
buy-and-hold (passive) investing. We constantly monitor the markets
and attempt to measure the amount of risk. If we believe the
markets are too risky, we do not have to be invested. If the market
is in a higher-risk/lower-profit period, we move to the safety of money
markets until the opposite conditions return. When we are invested, we
may own dozens of positions.
What are examples of the positions you buy?
mutual funds reveal their portfolio only two times per year. However,
the performance of the Fund can be seen each day in the NAV.
What is the difference in a money manager or a mutual fund like HCM
managers charge a fee and usually invest your money in investment
vehicles that also have fees. Fees diminish performance. We decided
to launch the HCM Freedom Fund in part because doing so allows us to
reduce the overall level of fees assessed on the investment. The
Prospectus contains a discussion of the fees associated with the HCM
Any other questions I should ask a money manager that I interview?
money managers and stock brokers have a solicitation agreement with
attorneys, accountants and banks. This means the money manager pays the
person referring you to them, but we do not participate in any
arrangement like that. We want to manage fund assets with independence
and with shareholders' best interests in mind.
Who are ideal shareholders?
have found that the most satisfied shareholder is one who already has
investment experience, especially unsatisfactory experience with
commissioned brokers or self-management. Also, you will not be a happy camper
if you suffer from “control issues.” We make all decisions
without consulting with you and you only see the complete portfolio two times
Any famous last words?
A: We do
not want you to invest all of your money with us. Everybody should have
at least 3 months of living expenses in a bank for emergencies. We manage
money with a long-term view. Therefore, you should not invest any money
with us that you know you will need in the next year. Finally, if you
like picking stocks with your “play money,” please continue
to do so. We take our responsibilities seriously, so we want only your
“serious money” to help you reach your financial goals.
… yeah, we know what you’re thinking. What if you are so
impressed with the performance and service you get from HCM Freedom Fund
that you will be tempted to send us a fruitcake for Christmas? Please
fight the urge.
The Fine Print: We use our best
judgment and efforts for your benefit. However, no assurance can be given
that our management shall result in a profitable investment for you or
that you will not incur losses. Past performance is no guarantee of
future results. Read the prospectus.