New Harbor Investment Management, LLC: Questions and Answers





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What exactly does New Harbor do?
New Harbor manages portfolios of stocks for investors. We buy and sell stocks on your behalf, according to our value-oriented investment approach. The portfolio is physically held by a custodian, Charles Schwab & Co., the nation's largest discount brokerage firm.

What's the advantage of investing with New Harbor instead of a large financial services firm?
At New Harbor, you are important to us as a person. You're not just an account number among thousands, as can be the case at large firms. You get to interact directly with the portfolio manager who is managing your money. Unlike a large financial services firm, we don't try to be all things to all people, or cross-sell you other products. We focus on you and your account alone.

Is New Harbor like a stock broker?
No. Stock brokers are generally compensated by commissions, sales loads, or wrap fee arrangements. The broker's incentive may be to push transactions which generate more compensation. Sometimes brokers feel pressure to recommend the stocks of investment banking clients. Unlike stock brokers, New Harbor acts as your portfolio manager directly, and we are compensated by the management fee only. Our interests are aligned with your interests.

What kinds of accounts can New Harbor manage for me?
We can manage taxable accounts for individuals, or joint ownership. We can also manage trust accounts, whether revocable or irrevocable. New Harbor can manage your IRA Rollover account, your SEP-IRA or other Qualified Retirement Plans (Money Purchase Pension or Profit Sharing Plan).

What will my account look like?
Your New Harbor account will generally have twenty or more stocks in it. Think of it as your own personal mutual fund, except that you own the stocks directly in your own name.

Why is a New Harbor account better than mutual fund investments?
Because you own the stocks directly, there is no possibility of the activities we've seen in the mutual fund scandals, where fund management companies allowed trades after the market closed. This hurt fund investors who were following the rules. With a New Harbor account, you authorize us to trade on your behalf, that's all. Charles Schwab & Co. as the custodian holds the assets.

How does New Harbor get paid?
We charge a management fee which is a percentage of your account assets. We bill at the end of each quarter based on the account value at that time. Charles Schwab & Co. as custodian receives discounted commissions on trades as well as certain minor charges for special services. There are no other charges imposed by New Harbor: NO sales loads, NO underwriting fees, NO commissions, Nothing.

Are there any tax advantages to a New Harbor account?
New Harbor's approach tends to generate long-term gains, rather than short-term gains. This lowers your tax burden in taxable accounts. Also, your management fee may be tax deductible as an itemized miscellaneous deduction, which is not the case with mutual funds (please consult with your tax advisor for your personal circumstances).

Does New Harbor manage bond portfolios?
No, but we can help point you in the right direction depending on your circumstances.

Does New Harbor do financial planning?
No. While we are happy to discuss investment issues with you, we don't draw up specific plans. We focus on our primary mission of portfolio management.

Does New Harbor use options, futures, or derivatives?
No! We consider them only appropriate for speculation, not investment.

Does New Harbor use margin debt or engage in day trading?
No! We think these are risky, speculative activities.

What is the minimum account size?
The account minimum is $250,000.

How can I get more information?
To request materials or discuss your investment needs, please contact New Harbor by phone at 410-252-1014, or use our contact page.

Copyright 2002 - 2012 New Harbor Investment Management, LLC
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