Hatteras	Mendocino	Halifax	Bonavista	Fresnel	The New World

Investment Management

We currently offer six model portfolios to our clientele. These portfolios are designed to meet the needs of a broad spectrum of investors. Four of the models are based on broad-based asset allocation strategies. They would be considered “balanced” portfolios and could easily be the entire investment program for a prudent investor. Our fifth model relies on a much more focused strategy to achieve its goals and its intent is to match higher concentration of assets with the likelihood of higher returns than the four balanced models normally achieve. Our sixth model is our “all green” model in which investments are concentrated in companies that could easily be seen as “friendly” to the planet.

The four “balanced” models may be summarized as follows:  Mendocino is primarily managed for non-taxable accounts in excess of $500,000 established under ERISA (retirement plans, pension and profit-sharing, or Individual Retirement Accounts (IRAs), which by law or by policy, can not establish margin or short positions. The Hatteras model is used in taxable accounts in excess of $500,000 and is usually a blend of tax free municipal bonds, equities and cash. Bonavista is available for taxable accounts that range in size from $250,000 to $500,000 and is managed in a style that emulates Hatteras. The Halifax model is primarily managed for non-taxable accounts in excess from $250000 to $500,000 established under ERISA (retirement plans, pension and profit-sharing, or Individual Retirement Accounts (IRAs), which by law or by policy, can not establish margin or short positions.

The Fresnel model is available to taxable or non-taxable accounts in excess of $750,000. It is a more focused investment portfolio than the other models and features a performance fee for the advisor.

The New World model is available to taxable or non-taxable accounts in excess of $500,000.

The stated objective for Mendocino, Hatteras, Halifax and Bonavista is “competitive total return with below average portfolio volatility”. They would all be considered “balanced” portfolios and each one could easily be the entire investment program for a prudent investor. They are also managed to provide investors with positive investment returns over a 12 month period in almost any investment climate while attempting to significantly dampen portfolio volatility.

They are not managed to “beat” any specific index. Rather, they are managed with simple ideas in mind---Investors want good returns; they hate to lose money and they also hate volatility.

In order to achieve the stated objectives the manager may use hedging techniques, asset class diversification and strict investment disciplines.

The stated objective for Fresnel is to significantly outperform the S&P500 over any rolling three year period. The model tends to be much more concentrated in fewer positions and assets classes than the other four, and therefore may experience higher volatility levels.

The objective of The New World (TNW) is to profit by principally investing in companies and technologies that are on the leading edge of developing sustainable and alternative energy technologies including the design, manufacture, and sales of power supplies and components for alternative energy, including, but not limited to solar, geothermal, ethanol and biodiesel power. TNW also focuses on companies in the vanguard of discovery, research, and production of bio-therapeutics; and cutting edge information technology

K&A also offers customized portfolios and charges higher fees for the custom work.

You will find more detailed descriptions and performance information on the “Portfolio Choices” page of this website.