Why Folio Institutional?

When Howard Capital Management (HCM) President and CEO Vance Howard first heard about Folio, he was intrigued.

"In 2003, a friend in Houston mentioned Folio, telling me how its platform did model management and allowed you to rebalance accounts at one flip of a switch," Howard said in a recent interview with Folio.

"Even as an early adopter of Folio's technology, I'm still pleasantly surprised at how remarkably easy it is to manage our clients' accounts."



Howard began working with Folio in 2003, after deciding that he could not find another broker-dealer platform that allowed him to set up models across a large number of accounts that his team could update with just one click.

"Folio Institutional's models and rebalancing tools have been a real game changer for us," said Howard.

HCM uses Folio's Model Manager Exchange (MMX) to run 20 different investing strategies, ranging from very high to very low risk. Also, Howard Capital Management can subscribe its clients to multiple strategies in one account.

Folio's Technology a Natural Match-up for Howard Capital Management

Howard relies on Folio's technology because it accommodates his firm's HCM-BuyLine, a patented system that indicates the degree to which clients should be invested in equities or whether they should be entirely out of the stock market.

When the HCM-BuyLine indicates a negative market event, Howard explained, his firm needs to be able to cash out of equities at a rapid clip. The mandate is clear: to protect clients' capital from a market downturn. 

Folio's functionality was critical for HCM when the 2008 financial crisis struck and the stock market began to implode in October of that year. The HCM-BuyLine indicator urged Howard Capital Management to get his clients out of equities, he explained. With one click, the firm was able to convert 100% to cash in a highly compliant manner by a trade execution during Folio's 11 a.m. Eastern trading window with all clients receiving identical prices for each ticker.

"It made a tremendous impact on the portfolios we administer and the risk management we provide," he said. "We want clients to have immediate access to market opportunities, especially during times of volatility."

Folio's Trading Functionality Gives HCM Flexibility to Manage Its Business

With Folio Institutional, Howard explained, he can set up an investment model, and then easily trigger a change simultaneously in hundreds of client accounts that are subscribed to that model. Another benefit of Folio is that the firm can have an ETF strategy and a stock strategy all contained within a single-client account, and it can manage all together.

"We couldn't manage our business if we had to make individual account changes," said Howard. "Folio Institutional changed our practice and the dynamics of what we can offer our clients. Folio makes life easy."

Looking to the Future with Folio Institutional

Howard pointed out that the company has never had to hire a trader during its 13 years in business. The firm has never experienced a trade error during this time, thanks to the efficiency of Folio Institutional's technology. These days, HCM is exploring the idea of launching a robo-advisor using Folio Institutional's Advisor Connexion.

"We expect to be one of the few robo asset managers in the market that, thanks to the HCM-BuyLine, can really reduce risk," said Howard.

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Howard Capital Management, Inc. (HCM), a registered investment advisory firm with more than $375 million under management, is a third-party money manager that works with brokers, broker-dealers, private individuals, and hedge funds.

After years of research, HCM developed the HCM-BuyLine®, a disciplined, systematic method of investing designed to preserve clients' capital. HCM uses the indicator to decide how much capital it should keep in equities or whether to move all assets to the sidelines.

While the stories conveyed by our customers in the testimonials that appear on our website represent the actual experience of the individual or their firm, we do not represent that every customer will have a similar experience or that the testimonial is representative of the experiences of our other customers. None of our customers was paid for their testimonial.