...if we can't out-earn our modest fee, you should fire us...
Our strategy follows the sequence discussed in each of the tabs below. We start by choosing the investment Areas on the Move, then Building a Model of those areas and then Selecting Funds to represent those areas. We typical build three different mutual fund models: aggressive, moderate and conservative.
Our Focused Approach To Managing Money
Which Groups, Sectors, Regions or Investment Categories are on the Move
At any given time, certain geographic regions, industry sectors and investment categories will be moving more than others - sometimes a LOT more. Trends and themes persist. Using high quality research sources, such as BCA Research, Lowry's Research and others, we'll identify exactly where we want to focus our investments. As these change, we change. Every choice is made for a specific, well thought-out reason.
...Low interest rates, surging liquidity and strong growth in the developing world are all working together to create the conditions necessary for further rampant gains in [emerging market] asset prices in general and share prices in particular. Arthur Budaghyan, Emerging Markets Strategy, BCA Research, April 26, 2007
...Based on the 75 year history of the Lowry Analysis, there are a number of signs of diminishing Supply and expanding Demand to watch for at the end of a bear market and the start of a new bull market. But, one of the most important signs is a sharp, steady drop in the Selling Pressure Index, indicating that the desire to sell has been completely exhausted. Without this evidence, it is likely that any rally attempt will eventually be swamped by a new wave of selling. Lowry's Weekly Analysis, March 28, 2008
We Build an Investment Model, Emphasizing These Groups, Sectors etc.
Our basic model is a pie chart representing exactly where we want to be with our money. No dollar will be placed in a sector where we don't want to be. We'll have an aggressive model, consisting of exclusively growth investments and we'll build our moderate risk and conservative models as variations of that, each adding a measure of fixed/safer funds to the mix.
Populating Our Model With No-Load Mutual Funds...
Our third step is to locate the best mutual funds we know how to find, to represent the elements of the model. Kay Investments Inc. has a working relationship with Fidelity Investments Institutional Wealth Services (FIWS), which provides a platform of over 5,000 funds - no-load and load waived. We scour them using numerous screens to decide which we want. And whenever we decide a fund is under-performing among its peers - we fire it and replace it. We have no attachments to particular funds, no one is taking us to lunch and our motivation is investment performance.
kayinvestments.com (email)