What is KDM?
KDM is an SEC-registered Investment Advisory firm based in New York City. We manage money on behalf of high-net-worth individuals, family offices, foundations, and investors looking for above-market returns. We take a mindful, balanced approach to managing money, emotions , and expectations. We spend the majority of our time focused on studying businesses, trends, and how the world is evolving, and how humans interface with technology, and what that means for our future as a species. We have no interest in ‘watching the tape’ or listening to talking heads on various business stations professing their ‘expertise’ on the markets.
Is KDM a fiduciary?
Yes, KDM is a fiduciary. Fiduciary advisors put their clients' needs above their own. In practice, fiduciaries typically avoid conflicts of interest by not selling commission-based products. They are ethically bound to make recommendations that best match the client's financial situation and goals, even if that results in lower income for the advisor.
What is the KDM portfolio?
The KDM Portfolio is a fundamental, long-term investment strategy in public equities. Its goal is to provide returns above the general market over the long term. The Portfolio seeks high-quality companies with long runway growth potential, enabling them to scale their businesses and compound returns for investors. A few things we look for:
1) A company that is building a durable competitive advantage,
2) Management that thinks and acts like owners,
3) An attractive return from current prices if shares of the company were owned for 10+ years.
The KDM Portfolio concentrates on its highest conviction ideas, typically holding 25-30 companies. While there is no lock-up period, the KDM Portfolio is intended for long-term capital (10+ years).
The best way to learn about how the KDM Portfolio is managed is by reading past Investor Letters available on the website.
Fees generally range between 1% and 1.25% per annum of assets under management. At the beginning of each quarter, fees are charged based on the closing balance from the prior quarter.
There is no performance fee.
What are the fees?
Each investor has an account at Pershing LLC, a subsidiary of Bank of New York Mellon. KDM Capital manages the account on behalf of investors but does not take custody of the assets. While KDM Capital does not have a lock-up period, any money managed in the KDM Portfolio is meant to be invested over the long term (10+ years).
Accounts can be taxable brokerages, IRAs, trusts, estates, or corporate accounts managed by KDM Capital.
What is a separately managed account?
KDM Capital is an SEC-registered investment advisor (RIA). It manages money on behalf of clients in a single strategy called the KDM Capital strategy through separately managed accounts (SMAs).
How is KDM Capital structured?
KDM engages as little or as much as the client chooses. It’s entirely up to you. We are flexible and happy to work around your needs.