We work with a select group of institutions that include some of the world’s leading endowments, foundations and family offices. Kaleidoscope does not have any employees dedicated to investor relations or client service. We permit and even encourage our clients to interact directly with the investment team. We believe this has resulted in significant value add to our client’s portfolios well in excess of the capital they allocate directly to us.
Limiting the amount of capital we accept also affords us the flexibility to frequently focus on liquid, but smaller markets that are demonstrably less efficient. This has allowed all of our strategies to perform favorably in comparison to the applicable benchmarks.*
Favorable results coupled with excellent client service has resulted in a happy group of clients. We have done little in the way of outbound marketing. Instead, the majority of our asset growth in the last two years has been the result of additional flows from existing clients and compounding of capital.
But don’t take our word on any of this. We invite you to speak with our clients directly. If you would like us to put you in touch, please email us at email@example.com.
We believe that starting in 2010 there was a change in the set of rules that governed markets. This meant sensible strategies which had delivered great performance for decades were beginning to underperform. Furthermore, we expected this period of subpar performance to continue and even accelerate. For more detailed thoughts on this matter you can read our whitepaper from 2015 here.
When there are major changes in the landscape, incumbent firms frequently struggle to adapt. New organizations that don’t carry the burden of a successful legacy and the resulting “this is how we do things” mentality are more likely to succeed in such times. This was the idea behind the founding of Kaleidoscope Capital.
Successful investing is necessarily predicated on the ability to forecast future returns of assets. However, there are three additional aspects that we believe are underappreciated:
1. Portfolio Construction (more details here)
2. Optimal Trade Expression
3. Balance Sheet Management
Our years of multi asset experience combined with deep expertise in options trading have set us up nicely to implement our investment philosophy for the “new paradigm”.
*Kaleidoscope funds are benchmarked to a number of different indices including: 1) The S&P 500 Total Return Index; 2) the MSCI EAFE Net Total Return Index; 3) the Citigroup 3-Month U.S Treasury Bill Index; and 4) the MSCI Emerging Net Total Return Index.