Disclaimer: Kissinger Investments, LLC is a registered investment advisor operating under the jurisdiction of the State of Florida. This Web site is for informational purposes only and does not constitute a complete description of our investment services or performance. This Web site is in no way a solicitation of offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing in this Web site should be interpreted to state or imply that past results are an indication of future performance. Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness, or for any delay or interruption in the transmission thereof to the user. Past performance is no guarantee of future results. THERE ARE NO WARRANTIES EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY "LINKED WEB SITE."
Copyright 2006-2011 Kissinger Investments, LLC. All rights reserved.
Most mutual funds invest in hundreds of stocks and are "hyper-diversified." This level of overdiversification is a negative and is one of the reason over 80% of mutual funds cannot beat the indices after management fees are extracted. The reason for this is that as the number of stocks held increases, the fund is basically becoming closer and closer to an index fund. We find that most investors overdiversify their accounts and thus their portfolios perform basically like "hyper-index" funds minus the management expenses of their financial advisor and mutual fund management fees. Studies (see Dangers of Overdiversification) have shown that a typical portfolio needs only 25- 35 uncorrelated stocks to achieve diversification that is about the same risk as a portfolio that has hundreds of positions.
Q: What type of accounts does Kissinger Investments provide?
A: Types of Accounts
- Individual
- Joint
- Traditional IRA
- Roth IRA
- IRA Rollover
- SEP-IRA’s (Simplified Employee Pension)
- Custodial Accounts (UGMA/UTMA)
Click here to see more information on the types of accounts we offer.
If you have other questions, please click here...
Q: Does Kissinger Investments select mutual funds or individual stocks for its clients?
A: Many financial advisors do not select individual stocks for their clients. Instead, they place their clients' assets in many mutual funds. This generally requires very little effort on the part of the financial advisor and facilitates the creation of "cookie cutter portfolios." At Kissinger Investments, we do NOT believe that "one size fits all." Each client receives a detailed, individualized financial plans that addresses that clients' goals and objectives. Also, at Kissinger Investments, we do not generally like to place clients' funds in mutual funds as the client is typically paying the mutual fund a 1-2% management fee and also the financial advisor a 1-2% management fee. This is not a good use of your assets. Instead we earn our 1.5% advisor fee by selecting and investing your assets in individual stocks and/or bonds. We manage risk by selecting only the best 25-40 ideas that we have and then monitor each position closely.
Q: What is Kissinger Investments' investment style?
A: In the most simple form, we use proprietary, quantitative models to search for undervalued stocks that are just beginning to be discovered by others. We invest in small cap, mid-cap, large cap and international stocks - we are really a "go anywhere" type of investment advisor. We have a very strict and selective buy criteria. Even more importantly, once we purchase ownership in a company by purchasing stock, we have a very strict sell criteria. A stock is sold if its rank in our proprietary models drop below a predefined point, if the price drops below our predefined stop-loss levels or if, after time, the stock performance lags the rest of the market. We are NOT "buy-and-hold" investors. Our typical holding period for a stock is between 28-40 days. In effect, we sell our losers fast and let our winners run. By selling and not holding our losers during a market downturn, we significantly reduce our downside risk compared to "buy-and-holders." We also have the option to short the market if we believe the current market environment is poor for stocks.
Q: Isn't exposure to individual stocks more risky than investing in mutual funds?
A: Exposure to one stock is risky. But, once a portfolio is exposed to over about 20-30 uncorrelated stocks, the risk decrease significantly (see chart below). It is impossible to decrease risk below the market risk -- in other words, if the entire stock market declines by 30%, then any portfolio will probably decline also, unless the portfolio is taking positions opposite to the market ("shorting the market").
Independent Investment
Advice You Can Trust...
Q: What is your minimum investment required?
A: For complete wealth advising and management services, our minimum is $100,000.
Q: What are the advising fees?
A: Advising / management fees are 1.5% of assets under management. Fees are collected on a quarterly basis in advance (0.375% each quarter). Please note that these fees include all portfolio management expenses (i.e. performing discretionary trading, issuing monthly performance reports, maintaining a client website where you can access your account information on demand, etc.), but do not include trading commissions, IRA management fees or other brokerage fees paid to the brokerage firm which actually has custody of your assets.