KKRA has managed a GROWTH Equity strategy since the firm's inception in 1983.  Beginning in 1998, the managers recognized that the stock market dynamics had significantly changed and that some adjustments in the GROWTH strategy were warranted.

Following back testing in the 1998-1999 period, KKRA elected to make substantive changes in the strategy's design characteristics.  As such, we felt it prudent to begin our explanation and performance charts with the 4th quarter of 1999.  Since this time we have made periodic adjustments in the design criteria, but none that, we believe, would interrupt the integrity of the strategy or our presentation of this data.

CONTROLLING THE EQUITY RISK
By basing our investment philosophy on "value" and "growth" criteria, we seek to manage the GROWTH Equity Strategy in a moderate risk manner.  Turnover tends to be higher than average, consistent with most comparable equity growth funds, as capital gains maximization is sought.

The GROWTH Equity Strategy invests in companies that are among the leaders in earnings growth - specifically, those in the top 10% over the past 5 years.  These corporations are then ranked using the following criteria:  the last 3  years of earnings growth, the next 4 quarters of earnings growth estimates versus the last 4 quarters, stock price performance relative to the S&P 500 Stock Index, sales growth, profit margins, return on equity and the percent the stock is down from its 52 week high price, if any.  Portfolio risk is managed at both the individual stock level and at the general stock market level.  KKRA continuously screens its stock universe for issues that meet these criteria.

Portfolio Design Process

  • Build a diversified portfolio of quality stocks
  • Ensure all portfolio issues meet the strategy criteria and capitalization requirements
  • Utilize technical analysis to fine-tune entry and exit points
  • Equally weight all positions
  • Realize gains and reduce stock ownership when the market or individual stock risk is high
  • Increase stock ownership when market or individual stock risk is low