Imagine you had a money-making machine to harvest gains in the stock market while you sat back to enjoy life.
That’s everyone’s dream, right? Investor Vance Howard thinks he’s found it.
Howard and his small army of computer programmers at Howard Capital Management in Roswell, Ga., have a quantitative system that posts great returns.
His HCM Tactical Growth Fund
beats its Russell 1000 benchmark index and large-blend fund category by 8.5-10.4 percentage points annualized over the past five years, according to Morningstar. That is no small feat, and not only because it has to overcome a 2.22% fee. Beating the market is simply not easy. His HCM Dividend Sector Plus
) and HCM Income Plus
funds post similar outperformance.
There are drawbacks, which I detail below. (Among them: Potentially long stretches of underperformance and…