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.
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 |
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