Welcome to our blog. We are using this platform to acquire further interest in our Private Fund and to provide on-going information as to what we are doing and how we are progressing in this challenging field as a Private Fund. Currently our status is that we are seeking capital in June of 2012. We will start trading our systems in July 2012. All results posted are theoretical gains from our systems that we track hourly. Real results could differ due to slippage or other factors. Kinship Investments is not an advisory service and does not provide investment advise. Please contact lee@kinshipinvestments.com for further information.
Well we are at the end of May and the S&P 500 has given up most of it's gains for the year and is only up about 1.7% while the TSX-60 has managed to decline 4.9% for the YTD. To put it mildly, it is a very difficult environment for Fund managers.
Thank god we do what we do. We are up 6.3% for the year to the end of May. Not bad.
We are now commencing our road show and hope to raise between $3 and $10 million. There are a few main differences to our approach and our results:
1. Our incentive is to make you, the investor, money for the Kinship Fund. That is the only way we can profit at Kinship Investments. If we make less than 10% per year we do not make $1 for Management AND Performance fees. Again, our Management Fee can only be granted if we hit a 0.8% a month (accumulative) target and our Performance Fee is only granted if we are able to achieve a 10% profit for the year. By the way our fees are 1.5% and 15%, which we believe is reasonable.
2. Industry standard Hedge Fund risk exposure is usually 3:1. Meaning, for every $1,000,000 a standard Hedge Fund has for assets under management (AUM), they are able to leverage it up to $3,000,000 in positions. We are 1:1 at our maximum positions. On the average we are only 0.25:1. This means we take far less positions to make a profit. We use leverage wisely...
3. Talk about risk... The Kinship Fund has 50% of it's holdings in a low risk non-correlated bond or similar instrument that provides a small but steady minimum yearly return of 2.5%. In fact we only actively use a maximum of 25% of our total holdings for our positions. 25% of our total holdings are held as contingency.
4. The Kinship Investments Systems are completely computer driven and indicate when and where us mere humans are to make our trades. There is no emotion or discretionary trading involved.
WE TAKE THE EMOTION OUT OF TRADING
Here are details from our 'tear sheet'
| Fund Performance | |||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | YTD | |
| 2012 | 4.42% | 2.28% | 3.73% | -0.49% | -3.49% | 6.39% | |||||||
| 2011 | 2.86% | 6.53% | -5.28% | 16.96% | -1.68% | 0.41% | 0.61% | -0.87% | 8.31% | -4.95% | -6.26% | -6.54% | 7.80% |
| 2010 | 0.26% | 18.42% | -3.40% | 5.89% | 11.86% | 15.38% | -6.78% | 8.92% | 7.60% | -6.19% | 2.24% | 5.04% | 72.53% |
| 2009 | 0.63% | 3.93% | 14.50% | -1.39% | -2.55% | 0.37% | 6.69% | 8.40% | 8.05% | 7.31% | -4.01% | -9.59% | 34.42% |
| 2008 | 11.83% | 6.36% | 13.48% | -1.19% | -14.49% | 4.31% | 1.42% | 13.21% | 15.53% | 10.20% | 2.09% | 2.94% | 82.77% |
(Past performance is not necessarily indicative of future earnings)
2008 to 2011 are
real-time and back-tested results for Kinship Fund which included ‘Kinship
Investments - Medium Term Systems’
2012 to Present
contains the current Kinship Fund model of ‘Kinship Investments - Medium Term
Systems’, ‘Kinship Investments - Short Term Systems’, and the ‘Kinship
Investments - Volatility System’.
All systems trade
only Gold, Silver, Copper, Crude Oil, Natural Gas, and/or the S&P 500 index
futures contracts.
| Analytics | ||
| Kinship Fund | S&P 500 Index | |
| Compound Annual Returns | 46.20% | 8.64% |
| YTD Compound Returns | 6.39% | 4.19% |
| Annual Standard Deviation | 34.64% | 27.05% |
| Sharpe Ratio | 0.087 | -0.011 |
| Worst Drawdown | 16.72% | 49.90% |
| Months To Recover (1) | 5+ | 39+ |
| Percentage Up Months | 67.92% | 52.83% |
| Fund AUM | N/A | |
(1) The Kinship
Fund and the S&P 500 Index has not recovered from their respective ‘Worst
Drawdown’.
Something we are careful to point out is that our previous years (2008-2011) systems used slightly higher risk mainly due to not having the diversification that we do have in our systems today.
Our internal system results that we currently use in 2012 and beyond has a CAGR of 24.9% with a .05% standard deviation (I know, ridiculously low). We have been trading possible larger returns for less risk lately. In a nutshell we are aiming our sights at creating for the Kinship Fund a 25% return per year compared to the historical norm of 46% per year.
We look forward to any comments and our presentation in the following weeks.
Cheers,
Lee MacFarlane
President
Kinship Investments Ltd.
cel (250-818-5330)
office (250-385-9132)
fax (250-385-9134)http://www.kinshipinvestments.com/
President
Kinship Investments Ltd.
cel (250-818-5330)
office (250-385-9132)
fax (250-385-9134)http://www.kinshipinvestments.com/
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