Frequently Asked Questions
What is the Howard Capital Management Investment approach?
We first use our intellectual capital and non-emotional algorithm to determine if we should be invested in the market, and then secondly use our expertise in security selection to allocate opportunistically. We use our Proactive Sector Rotation to tilt portfolios towards the most advantageous pockets of the market in an effort to capitalize on the intermediate trends that exhibit relative strength over others.
What makes Howard Capital Management different?
We focus on delivering upside potential and growth when markets are doing well, coupled with our risk management component to help side-step significant market volatility.
How long has Howard Capital Management been in existence as a company?
Howard Capital Management, Inc. was established in 1999, but Vance Howard, CEO and Founder, originated his vision for the company in 1987 after the market crash, beginning with his work in developing the HCM-BuyLine®.
What differentiates Howard Capital Management from other money managers?
Howard Capital Management, Inc.’s investment style is tactical, proactive and defensive. With our defensive approach being a key feature to our investment style, HCM offers clients signature stoploss protection called the HCM-BuyLine®. With the vision of incurring financially devastating losses unnecessary, the HCM-BuyLine® is a mathematical, non-emotional and repeatable process we include in monitoring the equity portions of our portfolios.
How does the BuyLine® work?
The HCM-BuyLine® is our proprietary mathematical algorithm. The tool is driven by market ratios, measuring new highs to new lows across the New York and NASDAQ stock exchanges in an effort to capture a clear picture of the strength or lack thereof in the overall market. Non-emotional and repeatable, the HCM-BuyLine® removes emotion from the investment process, in an effort to keep assets on the right side of the market.
What triggers the HCM BuyLine®?
A mathematical analysis of different rolling moving averages examine 52 week highs and lows on the NYSE and Nasdaq. Ratios run on a 10, 20, 30, 90, 180 and 365-day basis. If the bulls are in control, our strategy is to invest capital in equities in order to take advantage of the gains a bull market can possibly bring. If the bears are in control, we typically move our clients’ capital to the safety of money markets and/or short-term bonds.
Why does the HCM-BuyLine® pre-date the inception of Howard Capital Management?
The HCM-BuyLine® was developed and being used before the establishment of Howard Capital Management, Inc.
Do you offer a subscription service for the HCM-BuyLine®?
No, we do not offer a subscription service for the use of the HCM-BuyLine®. The HCM-BuyLine® is part of our management methodology and overlays our separately management accounts, our proprietary Mutual Funds, and is used in the 401(k) Optimizer® and TSP Optimizer®.
Can you show me how the HCM BuyLine® helped investors in 2008 - 2009 during the financial crisis?
During the 2008 financial meltdown, the HCM-BuyLine® signaled to exit the equity market, allowing many clients to preserve capital and stem losses even during significant downturns in the broader markets. As pictured below, the mathematical algorithm of the HCM-BuyLine® signaled for us to exit the equity market on June 27, 2008.
If I’m interested in investing with Howard Capital Management, but don’t have an advisor, can Howard Capital Management help me?
We can assist you in finding an Advisor in your area. Please complete this form to find an Advisor.
What is available for High-Net-Worth Investors?
Howard Capital Management, Inc. now offers investment strategies for High-Net-Worth investors through our Private Wealth Services division. If you are a high-net-worth individual seeking an investment strategy through HCM, we recommend you contact our team directly to answer any questions you may have or begin our on boarding process.
What is the 401(k) Optimizer®?
The 401(k) Optimizer® is our proprietary online retirement allocation tool. The system helps plan participants to customize their 401(k), 403(b) or 457, gathering information regarding their risk level and goals to determine which investment choices inside their company-sponsored plan are best suited for the individual. The 401(k) Optimizer® notifies investments when it is time to re-balance their account, and sends quarterly notifications on any updates the system suggests for them to make within their portfolio. The system also includes our signature stoploss tool, The HCM-BuyLine® to assist plan participants in keeping their assets on the right-side of the market during times of, notifying subscribers when it is time to adjust the investments in their portfolio. The 401(k) Optimizer® is a subscription service, and investors can sign up here.
What is the Self-Directed Brokerage Option?
A self-directed brokerage account (SDBA) is a window inside a company-sponsored retirement plan (401(k), 403(b), 457, etc.) which allows plan participants the option to invest in more than the limited pre-selected company choices. This also includes access to professional money management, additional investment options like stocks, bonds, mutual funds, ETFS, etc. Company plans that offer a SDBA within their plan, allow any plan participant the ability to move their assets, tax- and penalty-free, into a brokerage account and choose from a larger selection of investment choices. The assets remain in the plan; they are not rolled over and there is no taxable event. Additional fees may incur if the SDBA is managed by HCM.
Do you have regularly scheduled due-diligence visits to your HQ?
Yes. HCM is regulated by the SEC. We routinely ensure HCM is up-to-date on all legal and compliance updates and changes required to meet industry standards.
