We are wary of having a ‘benchmark focus’ at KH, but at the same time believe we should watch our portfolios much like a manufacturing plant observes its machines for signs of oscillation and variance – if you’re manufacturing widgets you want to catch errors early and often. A brief update of our composite performance follows, and please review the disclaimer below.
Note: This post was originally published on January 22, 2015 and was updated to include KHGT on January 26, 2015.
KHGG: In KilterHowling Global Growth, KHGG, we endeavor to participate when equity markets are rising and mitigate participation in falling markets.
For the fourth quarter of 2014 our composite of KHGG accounts returned 1.89% vs. 0.52% for the global stock index (a measure of all investible stocks globally).
For the second half of 2014 the KHGG composite returned -1.02% vs. -1.68% for global stocks.
For the seven months for which we have KHGG performance, global stocks rose 0.22% while KHGG returned 1.23%.
KHGT: The KilterHowling Global Tactical portfolio is a sleeve of KHGG that we manage in-house. We track its performance on a standalone basis in a live account and adjust that for fees as well.
In the fourth quarter 2014 KHGT returned 4% compared to 0.52% for the global stock index. This composite does not have a track record prior to the fourth quarter
KHCP: In KilterHowling Capital Preservation, KHCP, we earned the modest, low volatility returns we expect. This portfolio attemps to return 2-3% more than inflation over a market cycle while preserving against actual loss.
For the fourth quarter 2014 a composite of KHCP accounts returned 1.17% compared to inflation+3% at 0.1%, as actual inflation was negative.
For the second half of 2014, the same composite of KHCP accounts returned 1.54% compared to 0.8% for inflation+3%.
KH 70/30 Blend: In the fourth quarter 2014 our blend of 70% KHGG and 30% KHCP returned 1.6% compared to the a blend of 70% Global Stocks and 30% U.S. Bonds, which returned 1.1%. This composite does not have a track record prior to the fourth quarter.
Disclaimer: Past performance is not an indication of future performance or results. The information presented here is relevant only to these disclaimers and covers only the accounts in the composites noted and shall not be construed as indicating future results or outcomes.
The performance discussed here is for specific KH account composites of live, actual client accounts. Fees range from 0% on assets (employee accounts) to our maximum fee of 1% per annum. KH calculates the blended fee of the composite and then adjusts the performance to reflect the maximum fee of 1%, thus it is our intent to demonstrate performance of actual accounts net of the maximum fee any client will pay to work with KilterHowling. Performance is next of any transaction, fund or ETF operating expenses. Not all client accounts are placed into the composites presented here. Thus, client performance may differ from the composite due to cash flows, taxes, timing, or certain positions that are not part of KH portfolio solutions. KH is happy to discuss and explain any KH client performance differences between accounts and the composite performance. References to “global stocks” or “the global stock index” refer to the MSCI All Country World Index, or ACWI, unless otherwise noted. References to inflation refer to the Consumer Price Index, data taken from the Bureau of Labor Statistics monthly release, unless otherwise noted.