At Kerns Capital Management, we believe in active management because bear markets happen; because trends change. We do not believe that just because the market goes down, your portfolio must do the same. That’s why we specialize in the design and development of actively managed investment strategies, such as our flagship KCM Macro Trends Fund, which seek to produce more favorable risk-adjusted returns than a buy and hold approach.
Making money during good times is important, but it is equally important to protect your assets during bad times. It is a mathematical fact that it is harder to make up losses than to make money. To control risk when invested in equities, we diversify our holdings across sectors, market caps and/or regions. We also limit position size so as to avoid high concentration in any one holding. When our top-down market exposure rules tell us the stock market is too risky, we manage that risk in our hedged products by reducing stock exposure and: 1) holding cash, 2) hedging the portfolio or with short positions, and/or 3) investing in uncorrelated asset classes such as bonds, commodities or currencies.
A Shared Investment
Through it all, we have worked hard to build our reputation on a foundation of honesty and integrity, and we have made it a practice since the very beginning to invest and trade a substantial portion of our personal funds in the same manner as those of our clients. We believe this approach has taught us to become fiercely protective of the assets we manage as we have shaped and refined our active investment model.
We are a fee-only advisory firm, meaning we take no commissions or subsidies from anyone. We do not receive compensation when trading accounts, and we do not get paid to sell anything. We increase our income solely by growing client assets. Our interests are perfectly aligned with our clients.
Please contact us today to learn more about how we invest, and whether we can provide an investment solution you can use.