WE SERVE A SELECT FEW, VERY WELL
Kelley Investments is an Independent Money Manager. We offer private investors and small business owners a smart alternative to banks, discount brokerages or big Wall Street companies.
We manage money with the philosophy that absolute returns are what matter most. Our goal is to preserve and grow capital over the long term, and to consistently generate positive returns regardless of broad market conditions.
In addition to Private Money Management, our independent structure and established network of professionals enables us to coordinate and customize a wide range of financial solutions for our clients including:
- Capital Preservation Strategies
- Cash Flow Solutions
- Business Retirement Plans
- 401(k) Rollovers
- Lending Solutions
HOW WE INVEST
Our approach focuses on finding high potential return investments with minimal risk of permanent loss. We use a flexible strategy that allows us the freedom to adapt to change and invest anywhere in the world we are able to find great opportunities. If we are having a hard time finding sound investments, we have the freedom to be patient and hold cash or short-term treasuries until we do.
OUR MAXIMS
- Avoid permanent losses
- There is no magic formula
- See things "as they are"
- Adapt & Modify
- Keep it simple
- Demand transparency
- Invest with Owner/Managers with proven records
- Do the homework
- Valuation. Cash Flow. Growth.
- Look for “Special Situations”
- Understand what you invest in
- Surf the trends
- Find the holes
- The "Big Picture" counts!
WHAT ARE THE RISKS?
The Principal Risks of Investing with Kelley Investments are:
General Risks:
All investments are subject to inherent risks, and an investment with Kelley Investments is no exception. Accordingly, you may lose money by investing with Kelley Investments. When you sell your investments, they may be worth less than what you paid for them because the value of investments will fluctuate reflecting day-to-day changes in market conditions, interest rates and numerous other factors.
Market Risk:
Stock and bond markets often trade in random price patterns, and prices can fall over sustained periods of time. The value of the investments Kelley Investments makes for you will fluctuate as the financial markets fluctuate. This could result in your account value declining over short or long term periods of time.
Focused Portfolio Risks:
Kelley Investments will often invest in a smaller number of securities than some other broadly diversified investment strategies. Accordingly, the money we manage may have more volatility and is often considered to have more risk than a strategy that invests in a greater number of securities because changes in the value of a single security may have a more significant effect, either negative or positive, on the overall portfolio value. To the extent we invest in fewer securities, the portfolios we manage are subject to greater risk of loss if any of those securities become permanently impaired.
Interest Rate Risk:
Your investments are subject to interest rate risk. Interest rate risk is the risk that the value of a security will decline because of a change in general interest rates. Investments subject to interest rate risk will usually decrease in value when interest rates rise. Fixed-income securities with long maturities typically experience a more pronounced change in value when interest rates change.
Small- to Medium-Capitalization Risk:
Kelley Investments may invest in securities of companies with small to medium market capitalizations. Such companies may have more volatile share prices. Often, small to medium size companies lack management depth, have smaller market share and fewer resources than larger companies. Furthermore, the securities of small to medium companies often have less market liquidity and their share prices can react with more volatility to changes in the general marketplace.
Foreign Securities Risk:
Kelley Investments has the ability to invest in foreign securities, and, from time to time, a significant percentage of your assets may be composed of foreign investments. Such investments involve greater risk in comparison to domestic investments because foreign companies/securities: may have different auditing, accounting, and financial reporting standards; may not be subject to the same degree of regulation as U.S. companies, and may have less publicly available information than U.S. companies; are often denominated in a currency other than the U.S. dollar.
Credit Risk:
Your investments are subject to credit risk. An issuer’s credit quality depends on its ability to pay interest on and repay its debt and other obligations.
Special Situation Risk:
Investments in special situations may involve greater risks when compared to the other strategies due to a variety of factors. Reorganizations, liquidations, mergers, or recapitalizations may not be completed as expected causing adverse consequences. Expected changes may not occur, or transactions may take longer than originally anticipated, resulting in lower annualized returns than contemplated at the time of investment. Additionally, failure to anticipate changes in the circumstances affecting these types of investments may result in permanent loss of capital, where Kelley Investments may be unable to recoup some or all of its investment.
Currency Risk:
Your investments may be subject to currency risk. Currencies fluctuate and changes in the exchange rates between foreign currencies and the U.S. dollar could negatively affect the value of your investments in foreign securities.
Junk Bond/High Yield Security Risk:
Investments in fixed-income securities that are rated below Investment grade can be subject to greater risk of loss of principal and interest than investments in higher-rated fixed-income securities. The market for high yield securities may be less liquid than the market for higher-rated securities. High yield securities are also generally considered to be subject to greater market risk than higher-rated securities. The capacity of issuers of high yield securities to pay interest and repay principal is more likely to weaken than is that of issuers of higher-rated securities in times of deteriorating economic conditions or rising interest rates.