The Fusion Fund ($3™)
Medici Effect: Innovation comes from combining existing ideas
K.I.M.’s tact is ultra-simple: shop for great deals on high-quality goods. Then trade in and around them to amplify returns. That’s it.
Simple. But not easy.
Notable investor Ken Fisher observed that “time in the market beats timing the market”. But to realize significant gains in the market usually takes… well, a long time.
So how can we accelerate the velocity of money to speed up ROI? By time-sharing market phases in order to compress time horizons. In short, fusing the market phases.
Enter the Fusion Fund™… a blend of compound investing, momentum trading & high-yield income. The Fusion Fund™ demarcates the illustration below into 3 investment buckets corresponding to K.I.M.’s 3 funds and fuses them together--
Core Compounders = 5 to 10+ years
Momentum-Trend = 1+ Year(s)
Options Income = ≤ Quarter
A Diversified Multi-Strategy Fund but with unifying elements: namely, one or more of the positions in the Core Compounders group and the Momentum-Trend group overlap during certain periods of opportune market fluctuations. Our Options Income group then overlay them to produce dividend-like enhancements.
The weighted balance of the blend -- whether equal or asymmetrical -- adjusts according to market conditions.
The total combination synergizes exponential FXs or $3™ – Capital Raised to the Power of 3.
Total Blended Return Target: 15% CAGR
Interactive Graph - hover over the various areas on the image below & click for details
FUSION FUND
The Medici Effect: Innovation comes from combining existing ideas. [MORE…]
OPTIONS INCOME
Safe high-yield, bond-like premium. [MORE…]
MOMENTUM-TREND
Tactical investments in a concentrated portfolio of 8 to 10 companies representing 4 to 5 sectors of the economy focused on accelerating growth. [MORE...]
Steadfast
Smoother returns
Quality compounding equities
Low turnover / low volatility
Active
Opportunistic value-oriented
Reflexive effects between…
Fundamentals / annual reports &
Market sentiment / analysts’ consensus
Dynamic
Capitalizing on market oscillations
Price, volatility, time premiums & skew
Options trading
Short-Term
Weeks to a few quarters
Mid-Term
Several months to a couple years
Long-Term
A business cycle (3.5 or so years) until – ideally – forever…
Young / Innovative
Startups to early hyper-growers
Developing product-market fit
Typically outside capital structure (VC, IPO, PE, et.al.)
Narrative driven
High revenues, low profit, little equity
Metric Used: Price-to-Sales Ratio + Total Addressable Market
Growth / Operating Leverage
Increasing revenue
Gross margin expansion
Scaling market share
Near or at self-funding
Breakeven-to-very-profitable
Efficiencies & economies of scale
Metric: Price-to-Gross Profit Ratio
Mature / Predictive
Competitive advantage / brand moat
Return of capital to shareholders via stock buybacks, dividends, retained earnings, debt pay-down
Plateauing organic growth
Growth via mergers & acquisitions
Premium on valuation & management
Metric: Price-to-Free Cash Flow & Reverse Discounted Cash Flow
Core Compounders
Blue Chip collection of 20 to 25 of the finest large capitalization, long-term holdings that you can own. Selections are tailored – bespoke – to fit each client’s individual profile. [MORE…]
Fee Structure
Hurdle Rate: 6% (fee waiver)
>6% – <15%: 2% of AUM
>15%: 20% Carried Interest
Fact Sheet
| The Fusion Fund™ | Mid- to Large-cap | Diversified Multi-Strategy | 2024 | 15% annualized target |
| 10 to 15 | <30% | 1.15 | 1.4 | see Fee Structure above |