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Frequently Asked Questions
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Questions About Who We Are:
Questions About What We Do:
Specific Questions About Our Services:
- Who is Hébert Advisory Services?
We are a second generation, family owned and operated investment management and stock market research firm. Since 1975 we’ve had extensive experience managing equity portfolios. Hebert Advisory Services, Inc. is an SEC registered Investment Advisor with membership in the CFA Institute© and compliant with AIMR-Performance Presentation Standards (AIMR-PPS®) and the Global Investment Performance Standards (GIPS®). CFA Institute© is a trademark owned by the CFA Institute.
- What does Hébert Advisory Services do?
We analyze the stock market with our proprietary technical research INSTITECH, producing and publishing the results weekly.
We manage individual stock portfolio accounts using the INSTITECH output as the major tool in our money management efforts.
Our purpose is to maximize long-term capital appreciation for our clients portfolios. We believe that investors long-term goals can best be served by equity ownership of viable business enterprises. We feel that common stock ownership provides the best opportunity for asset growth.
- What makes Hébert Advisory different?
One important feature: our proprietary INSTITECH technical analysis and how we use it to successfully manage accounts. Effective money managers rely on their own research in combination with proven outside sources. As additional verification of our analysis: We also provide the INSTITECH research to other money managers and financial institutions for use in their own portfolio management process.
- Why should I do business with you?
We’re active, professional money managers focusing on what we do best: analyzing and describing the market, properly reacting to that description and translating the effort into an effective portfolio management discipline. The results have been solid, better than market, long-term performance.
- Are you registered with the Securities and Exchange Commission? How can I check up on you? Yes we are fully registered with the SEC. Go to this site to review our information on file with the SEC:
www.adviserinfo.sec.gov. Our IARD/CRD number is: 106120
- Who hires you to manage their investment account?
We manage accounts for investors who desire a broadly diversified, separately managed common stock account having solid long term performance and capital appreciation in mind. This includes individuals, businesses, foundations, endowments and trusts.
These investors understand and appreciate the need for specialized and focused equity portfolio management and are comfortable working with a professional money manager.
- What investment problem can you solve for me?
A Hébert managed account provides you with a broadly diversified stock portfolio at reasonable risk.
The account will hold stocks in multiple industry groups across small, mid and large cap issues. This one account will give you the essential diversification needed without the necessity of owning multiple equity accounts to achieve the same mix.
- What is your process and how do you manage the portfolio accounts?
We start the investment process with a top down view using our INSTITECH technical research to analyze the market in general and its constituent common stocks in particular. Once the overall market posture is determined, we shift to a detailed fundamental bottom-up analysis identifying specific stocks and industry groups that are currently, and have been, performing better than average.
The fundamental research tells us what to buy, our technical analysis determines when to buy or sell. Our primary management objective is long-term capital appreciation with reasonable risk.
We are active managers analyzing the accounts on a systematic weekly basis. Our aim is to include the relatively strongest performing issues while culling the weaker stocks with this routine review.
- Why do you evaluate the market using your technical analysis?
Analyzing the market with our specialized research allows us to eliminate potential emotionally driven buy and sell decisions in our portfolio management. The INSTITECH analysis describes rather than predicts what the market is doing. Fighting the market will not work, the market always wins that battle. Understanding how the market is currently behaving and properly reacting to that condition may in fact ease the struggle.
- How often will you communicate with me and what reports do I get from you? We believe in communicating with our clients in meaningful ways. We tend to not initiate unnecessary phone calls. However we do encourage you to call us anytime with questions. We view our clients as busy, successful and smart individuals who will call us when they want something. As a means of keeping in regular contact with you we send you semi-monthly reports showing the current values and costs of all securities held. You will also get trade confirmations as they occur along with monthly statements from the brokerage house holding your account. Periodic performance reports are available upon request.
- What are your fees? How are they paid?
When working through a broker - our portfolio management fee is 1% of account net asset value per annum. The brokerage house will have additional fees for their services and custody. Note that some brokerage arrangements may require a $200,000 initial investment. Please contact us for details.
When working through Fidelity Investments as the broker – the total fees (our portfolio management fees plus Fidelity’s trading and custody charges) will range from 1.50% to 2.50% depending on asset value of account. Fees are charged in advance on a quarterly basis and automatically deducted from the account. Please see our Form ADV for more information.
- Your performance numbers are stated “net” of fees – what does that mean? The performance numbers we publish show the actual time weighted returns after all management fees and transaction costs are deducted to give you an accurate picture of the true performance of the account.
- Do you take physical custody of my account?
No – we do not have custody of your account. The brokerage house that your account is set up with has custody. We manage the account for you but have no ability to take custody of any part of your account. You hire us to manage the account, not to maintain custody.
- Are your managed accounts suitable for retirement type accounts as well as taxable accounts? Yes - Hébert managed accounts are very appropriate as retirement accounts or regular taxable accounts for individuals and business. Regular IRA’s, Roth IRA’s, 401k, SEP accounts and rollovers from other qualified plans are especially suitable for a Hébert managed account.
- What is the right investment time horizon with a Hébert managed account? Ideally the longer the time horizon the better. A Hébert account should be viewed at a minimum of three to five years out - or longer. If your investment focus is two years or less – any common stock account is probably not a good fit for you due to the unpredictable nature of the stock market.
- Does Hébert Advisory offer financial planning or help to define an overall investment plan? Hébert Advisory is a portfolio management and stock market research firm. We are not financial or estate planners, nor insurance or mutual fund salesmen. We do need to understand your overall financial picture so that the portion of your assets that we manage is appropriate for your situation. Although we do not render overall financial advice, we are available to you for discussion and comment on particular situations you may be in question of.
- How do I know if one of your account styles is right for me?
This is a good question, one that requires personal reflection. Quite frankly this account style is not for everyone. Here are some points to consider while reviewing your options:
- Historically, even with the inherent volatility, the stock market is one of the best places to realize long-term capital appreciation. Understanding this reality is important.
- Risk level: Investing in the market is not risk free. The willingness to take some risk needs to be present. We consider our managed accounts to have a reasonable risk level but not risk free.
- Time horizon: The longer the time frame the better. Five years before substantial percentage withdrawals take place is preferable to allow the account to work best. This may not be the right investment for you if you need the money to live on right away or require large percentage withdrawals on a regular basis.
- Consider the size of your intended managed account relative to your total investment assets, your age and your income: Generally speaking you need some portion of your total investments in common stocks to maximize growth potential. Since there are many situations possible, please confer with your financial advisor or us if you have questions or need help.
- Temperament: The ability to look at the long view of the market and accept the fact that the market will go up and down, which may negatively affect the value of your account. Perseverance, patience and time are necessary, not to be panic prone and reactionary.
- How do I become a client?
For those clients that have an established brokerage relationship we work directly with you and your broker. For those clients without a brokerage relationship we can facilitate the custodial and trading operations through our affiliation with Fidelity Investments.
Please go to the "Contact Us" page to request information.
- Do I need to go through a broker to sign up for an account?
We actively work with brokers and financial advisors and encourage you to do the same. Their services can be an invaluable assistance to you for overall investment planning. For those investors that do not have a relationship with a broker or brokerage house – we may be able to work with you through our relationship with Fidelity Investments.
Please go to the “Contact Us” page to request information.
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