We believe many traditionally allocated portfolios are dominated by equity exposure.  How diversified is your portfolio, really? How did your portfolio perform in 2008? How will it perform in the next crisis? The Valarian Four Seasons strategy seeks to provide diversification by adding potential return streams that behave differently from equities.   Our strategy is based on time-tested research and results by Ray Dalio, Harry Browne, Mebane Faber and others who have found sustained success with a combination of stocks, bonds, commodities and other asset classes. The strategy is available as a separately managed account (“SMA”) for institutional investors, as a subadvisor to the clients of investment advisors (requires trading authorization), or as signals for investment advisors who wish to retain trading control. Key features include:

  • Highly liquid, transparent investments
  • Diverse asset classes
  • Tactical strategy to minimize systematic risk
  • Long or cash positions only

Past performance of any Kerns Valarian strategy is not an indication of future results.  There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. Investing involves risk and possible loss of principal, including foreign currency exchange rates, political risks, market risk, interest rate risk, different methods of accounting and financial reporting.  Investors should carefully consider the investment objectives, risk and expenses of any investment strategy before investing.

VAMI means Value Added Monthly Index.  The returns shown reflect an index of the strategy. Strategy performance does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions. Such fees, expenses and commissions would reduce returns.

All information presented prior to the live date of any Kerns Valarian strategy is back-tested and hypothetical and provided for informational purposes only to indicate historical performance had the index strategy been available over the relevant time period.  Backtested performance does not represent actual performance and should not be interpreted as such.  Backtested performance results have certain limitations.  Such results do not represent the impact that material economic and market factors might have on an investment adviser’s decision-making process if the adviser were actually managing client money.  Backtested performance also differs from actual performance because it is achieved through retroactive application of model strategies designed with the benefit of hindsight.  As a result, the strategy theoretically may be changed from time to time and the effect on performance results could be unfavorable. No hypothetical record can completely account for the impact of financial risk in actual trading.  Further, the material market and economic conditions during the backtest are unlikely to repeat.

The results shown reflect the reinvestment of dividends, earnings and capital gains with period rebalancing.  If client accounts are rebalanced using different periods, it will affect returns. Tax liability has not been deducted from any performance results.  Taxes will reduce client returns significantly. Actual performance for client accounts may be materially lower than the index strategies.  Clients should consult their account statement for information how their actual performance compares to that of the strategy index.

For all data periods, annualized standard deviation is presented by multiplying monthly standard deviation by the square root of 12.  Please note that the number computed from daily, weekly or annual data will differ.

The S&P 500 Total Return Index is the dividend-adjusted return of the S&P 500 Index.  The S&P 500 is a representative sample of 500 leading large cap companies in leading industries of the US economy.  It is widely regarded as the best single gauge of the US equities market.   Source:  Standard & Poor’s.  

The Barclay Hedge Fund Index is a measure of the average return of all hedge funds (excepting Funds of Funds) in the Barclay database.  Source: Barclay.   Investors are not able to invest directly in the indices referenced in this illustration and unmanaged index returns do not reflect any fees, expenses or sales charges.  The referenced indices are shown for general market comparisons.

The strategy invests in several distinct asset classes, including large cap domestic stocks, US Treasuries, gold and the US Dollar.  Each of these asset classes has its own set of investment characteristics and risks and investors should consider these risks carefully prior to making any investments. Investments in US Treasuries may have greater volatility than investments in traditional securities. The value of treasury-linked instruments may be affected by changes in overall market movements, bond market volatility, changes in interest rates, international economic, political and regulatory developments. Investments in currencies may have greater volatility than investments in traditional securities. The value of currency-linked instruments may be affected by changes in overall market movements, currency index volatility, changes in interest rates, international economic, political and regulatory developments. Investments in commodities may have greater volatility than investments in traditional securities. The value of commodity-linked instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE ACCURACY, COMPLETENESS OR RESULTS OBTAINED FROM ANY INFORMATION PROVIDED HEREIN OR ON THE MATERIAL PROVIDED.  

This website is in no way a solicitation or an offer to sell securities.  Any statements regarding market or other financial information is obtained from sources we believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information.  Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or for any delay or interruption in the transmission thereof to the user.  Your use of these materials including kcmtx.com website is your acknowledgement that you have read and understood the full disclaimer as stated above.

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