The appraised risks of all stocks in the portfolio are constantly reviewed to ensure that the risks are as they were understood at the time of investment. 

KAM believes that excessive diversification is a poor surrogate for knowledge, price consciousness and understanding of risk. Our funds are concentrated, holding between 20 and 45 stocks.

No attempt is made to mirror a benchmark, either by composition or weighting. However, in order to minimize portfolio risk, allocations to individual securities will not exceed 10%.  

As a discipline in portfolio management, KAM emphasises understanding how the individual stocks fit together into a well-balanced portfolio focused on avoiding a concentration of any type of risk - diversification in any measure will only be successful if the separate investments are not correlated.  When considered in this light, diversification has two distinct implications:

• It increases the range of events that will trigger a rise in prices for one (or many) of the holdings
• It decreases the range of events that will trigger a fall in price for many of the holdings

All individual investments are considered in the context of the portfolio, whether the investment would increase or decrease the overall risk and thereby strengthen or weaken the overall portfolio.

At all times, all investments are seen in light of the risk to clients’ capital.