Since the launch of KilterHowling we have focused primarily on our Global Growth and Capital Preservation portfolios. These have both exceeded our expectations in terms of return and risk, after all fees. Returns have been consistent across our client accounts, which we like. And in terms of risk-adjusted return, we have done as well or better than we expect. Disciplined, fee-efficient, focused on risk, and transparent is how we like it.
One other portfolio we have been working on is our Global Value strategy. This portfolio draws on Kreighton’s background in individual bond and stock selection, as well as individual company valuation, combined with Will’s influence on the risk control side of things. We formally launched a seed portfolio on June 1, 2015, so we are just about to cross the 12 month barrier. A few features of this strategy:
- Does not have a restriction on the amount of cash we can hold
- Holds an allocation to our Global Tactical strategy that ranges from 0% to 25% of the portfolio
- Aims to hold 15-20 stocks and individual bonds that we deem to be available for sale at significant discounts to their ongoing, intrinsic value
- Generally looks for high yield corporate bonds and dividend paying stocks
- Similar to the managers (mutual funds) KH hires for Global Growth, expects to generate a skewed ratio of upside to downside capture such that the ratio of up / down is greater than 1.0
- Selects positions that have low overall correlation to one another
- Has less measured volatility than a representative stock index, such as the All Country World Index or S&P 500.
- $250,000 is the minimum investment
Global Value will be available to interested clients beginning on June 1, 2016. We are happy to discuss the portfolio in more detail with interested investors.
If a portfolio of individual stocks and bonds, paired with our Global Tactical strategy, in a deep value, go-anywhere format is interesting to you, please come in for a conversation.