Harbor Financial harbor.altavra.com

Harbor Financial seeks to achieve capital appreciation by engaging in a program of premium collection, by selling or writing options (puts and calls) and options spreads on stock index futures traded on the CME Group. This is achieved through Harbor Financials current trading program, the Managed Account Program.

An options spread consists of the simultaneous sale and purchase of options of different exercise prices and/or expiration months. This technique yields profits as the sold options’ value declines over time. Profit is captured when sold options are repurchased at a reduced value, or when they expire worthless, allowing retention of the original sales proceeds. The highest profitability occurs when the underlying stock index value remains higher than the sold put exercise price and lower than the sold call exercise price, during the life of the option. Central to the success of this strategy is the Advisor’s ability to predict the range of market movement over time frames ranging from thirty (30) to ninety (90) days. The strategy does not depend on a prediction of market direction, and is designed to produce returns which are not correlated with market direction.

Harbor Financial uses an extensive historical database of stock index price movement to assist him in determining high probability exercise prices at which to sell option spreads. In addition, seasonal and technical analyses are employed to further optimize trade entries. Technical analysis includes the study of price, volume, momentum and other measures, as well as recurring price patterns and measures of investor sentiment. Harbor Financial regularly evaluates market volatility and other technical behavior and adapts the strategy’s entry, adjustment, and position sizing criteria to current market conditions. Harbor Financial places a strong focus on risk management intended to provide consistency of returns and to mitigate the extent of the losses that may occur. Although Harbor Financials strategy is narrowly focused, trades are entered into on a continuous basis across different exercise prices and expiration months for diversification purposes. Once trades are entered, Harbor Financial employs strict risk management procedures which are triggered by total portfolio exposure rather than individual position value. Supported by sophisticated options analysis software and many years of options trading experience, the Advisor determines the correct portfolio adjustment, when necessary.

Despite Harbor Financials strong risk management focus and the procedures outlined above there is no guarantee that substantial losses can be prevented in the face of unanticipated market conditions. Harbor Financial has the right to employ any form or method of technical analysis that it deems appropriate and as well as exercise discretion whether to follow any trading signals or parameters generated by its technical trading strategies. The technical trading strategies and systems utilized may be significantly revised from time to time as a result of ongoing research and development that may devise new trading strategies and systems as well as test current technical strategies and systems. Neither the trading strategies used by Harbor Financial for Harbor Financial nor Harbor Financials performance will necessarily be parallel to or be the same as the trading strategies used by Harbor Financial for any other account or account traded by Harbor Financial.

Edward S. Walczak is the founder of the Company and the Managing Member of the Manager, Harbor Financial, LLC. Mr. Walczak has over twenty-five (25) years of business management experience in operations and supply chain management, including six (6) years of experience in commodities trading for his own account.

Prior to starting Harbor Financial in October 2005, Mr. Walczak served as Vice President for Operations at Acuity Specialty Products, a food manufacturer, in Atlanta, Georgia from July 1999 through August 2005. Later, he served as a Consultant for Acuity Specialty Products from August 2005 through December 2005. At Acuity he was responsible for specialty chemical purchasing, manufacturing, engineering, and logistics.

Mr. Walczak graduated from Middlebury College in 1977 with a B.A. in Physics and Economics, and he received his M.B.A. from Harvard University in 1983.

After college, Mr. Walczak spent four years in the U.S. Army Corps of Engineers, where he was promoted to Captain upon completion of his assignment and awarded the Army Commendation Medal for outstanding performance. After receiving his M.B.A., Mr. Walczak worked for General Foods Corporation from July 1983 through September 1986, Metropolitan Life Insurance Co., an insurance company, as a Management Trainee from September 1986 through August 1987, and J and J Snack Foods Corporation from August 1987 through April 1990 before moving to Brach and Brock Confections, a food manufacturer, where his positions included Vice President for Supply Chain, Vice President for Purchasing, and Vice President for Engineering. In addition to responsibility for company-wide sales forecasting, production planning, purchasing, warehousing, traffic, and customer service, Mr. Walczak was responsible for the company's commodity hedging operation from May 1990 through June 1999 both directly supervising and at different times personally trading futures contracts and options on futures. Trading corn and cocoa futures for Brach and Brock, Mr. Walczak gained the expertise in derivative instruments that he used to develop and perfect his premium collection strategies. He has successfully employed these strategies trading in his personal accounts since 2000 and in Harbor Assets, LLC, a commodity pool since its inception in December 2005.

The descriptions above are from the manager’s disclosure document.

THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  PLEASE READ THE CTA'S RISK DISCLOSURE DOCUMENT CAREFULLY BEFORE INVESTING MONEY.