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
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
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
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
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