Our promise to clients is to always be as careful and sensible with their money as we are with our own. We have built our investment strategies based on the sensibilities of our own families, who are, as a group, the largest client of the firm. Thus,the partners of KJH and their families co-invest all of their financial net worth alongside clients across our investment strategies. This ensures total alignment between the partners and clients, which is very rare in the investment industry.

One of our principal objectives is to achieve outstanding long-term, risk-adjusted returns over a full market cycle.  In our experience, the single biggest risk to wealth creation is overestimating one's tolerance for volatility, which often results in selling during scary periods and thus locking in horrible results.  We feel that one of our most important responsibilities as investors is to pay particular attention to reducing volatility and preserving our clients’ capital during negative market years. This ensures that our clients maintain confidence in periods when markets are just about to become rewarding.

We address risk in the following ways:

• Disciplined Investment Approach
  A key element of our investment philosophy is acquiring securities with a significant margin of safety by paying far less for a security than what it is worth. We are just as focused on asking ‘how much will we lose if we are wrong?’ as we are on asking ‘how much will we make if we are right?’. If we apply this discipline successfully we will have an extremely high quality, concentrated portfolio with asymmetrical risk/reward.
• Core Strategies: Actively Managing the Asset Mix
  In our core strategies we assume full responsibility for actively managing the asset mix. We are not afraid to hold cash rather than take on exposure to risky assets. Our clients provide us with a wide mandate and we use every tool available to meet their objectives. In contrast, most fund mandates have strict guidelines that prevent them from doing the sensible thing at market extremes. By way of example, a typical equity fund is generally structured to hold no more than 10% in cash at any time. As a result, the client has to effectively make the tough asset allocation decision to reduce their exposure to equities.
• Dynamic Capital Allocation across Strategies
  We allocate client capital across our core and focused strategies, each with its own distinct risk and return profile. Once we determine the client’s long-term financial objectives and their risk profile, we assume responsibility for allocating their capital across the appropriate combination core and focused strategies.