KCM’s equity investment philosophy is that over time a company’s revenue and earnings per share growth are the most significant determinants of long-term stock price appreciation. We seek companies that are positioned to increase market share, grow their dividends and become a dominant factor in their industry. Qualifying companies are selected for having strong financials and sustainable earnings and revenue growth. We believe that the best rewards for clients will be found over a full market cycle. KCM’s objective is to maximize total return, concentrating on income producing securities.

KCM seeks to build individual fixed income portfolios that produce a reliable income stream using taxable and tax-free bonds. Our extensive research and analysis of the bond market helps us identify the best values and structures. Our tough negotiating skills help our clients rest easy knowing we strive to utilize only well-structured and well-priced bonds find their way into his or her portfolio.

History tells us that stocks have produced superior returns to bonds over time but with greater volatility. We believe the purpose of adding preferred stocks and bonds to portfolios is to produce a reliable income stream, provide diversification, and reduce volatility. We call this our “anchor to windward” strategy. Building balanced portfolios helps achieve the appropriate level of risk and reward for our clients.

KCM’s Preferred Stock experience takes advantage of an often overlooked instrument that typically offers higher current income with some qualified dividend tax advantages. We believe there is value to be uncovered in this misunderstood asset type. Through our trading expertise and deep knowledge of this opaque market we utilize this asset class in a portion of a client’s portfolio to produce a higher income stream than many bonds.