http://investment-advisors.findtheb...nvestment-Management-vs-Good-Harbor-Financial They might have 250MM AUM.
A recent article in Fortune magazine profiled MF money managers who were among the top performers in '08. Problem is, they ONLY lost 20-25% when the S&P was down 37% !! Harbour claims to have been near breakeven in '08 and the only way that could happen was some combination of option usage and/or short positions. All sectors of the market were clobbered - even defensive sectors like utes and REITs were whacked. Even bonds were problematic. So I have no clue how a long only portfolio (Tactical Core) could break even. My friends grew up in Chicago and still have family there. I'm going to suggest that the next time they visit, they drop in to Harbour for a look/see. That's still not enough because they're the typical American couple who knows very little more about investing than buy a mutual fund and hope it does well. Thanks for looking at the web site.
I find that weird as well. One thing is that they aren't always long. In their latest news letter they state that they were 100% in treasuries during Q4-2011. It's possible that the beta of 75 is average. And really they are at 0 or 2 at any given time. If your friends aren't sophisticated they shouldn't even consider this. it could end in a disaster. Mutual funds with asset allocation is best for them. They need to really understand what they are getting into and it's unclear from the website. I'm not accusing Harbor of fraudulent returns but it's unclear what the real risks are. The risks they post will be the most favorable to their strategy. I dont understand how REIT's and MLP's fit into their strategy.