Investment Philosophy

 Our Investment Philosophy

► The central pillar of our investment philosophy is that superior investment performance is the result of the use of asymmetric strategies (multiple units of reward per unit of risk).  Investment opportunities are not evenly distributed and require both patience and a flexible mindset.  A key differentiator for generating returns is determining which vehicle to use given the projected environment - liquid/illiquid, long only/hedged, option/structured products, etc.  Risk management traditionally focuses on how many investments are winners (batting average); it is our view that it is more relevant to focus on how much you make on your winners versus how much you lose on your losers (slugging percentage) and position sizing. 

Our Long Term Outlook

► We believe we are in the early stages of two extraordinary trends - the Genomic Revolution and the 4th Industrial Revolution.  These trends are both in the early innings and will provide a secular tailwind.    

►Artificial Intelligence (AI)/Machine Learning is the primary driver of innovation in the current decade.  It will have profound effects on every aspect of commerce, manufacturing, health care (longevity) and society.

Please find the link to KCM Outlook for Alternatives: 2021 and Beyond below.