Our Philosophy

KKM Financial’s paramount objective is the achievement of its clients’ financial goals. This endeavor requires acknowledgment of the correlation between risk and return, and we thoroughly discuss this equation with our clients so as to find the appropriate dynamic.  We employ sound judgment with a disciplined, consistent approach and contemporary methodology.

KKM Financial was founded on the belief that investment success comes from using in-house research and models that hold us accountable for our investment decisions.  In order to offer this methodology to the broader investing public, we formally established the firm in 2012.

KKM Financial has the ability to construct highly individual investment portfolios according to the risk tolerance and income needs of each client.  We are committed to a transparent and thoughtful partnership with the clients we serve and take great care to understand our client’s values, goals, and concerns in a way that is meaningful and evident to them.

As a CPO & a SEC registered investment adviser, KKM Financial is not tied to the investment policies or recommendations of any one organization.  In addition to KKM's own investment analysis, we have relationships with a number of institutional research providers. These relationships enable us to assimilate information from multiple sources when making investment decisions for client portfolios.

In addition, we use quantitative analysis to establish theoretical values to further our conviction in our strategies.  Of particular note is the fact that KKM Financial does not operate as a securities broker/dealer or custodian of assets, nor do we participate in the commissions resulting from transactions in our clients' portfolios.  These choices enable us to maintain total clarity and focus on our clients’ interests and concerns as we help them make significant financial decisions.

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Definitions:

Volatility : A statistical measure of the dispersion of returns for a given security or market index.
Alpha : A measure of performance on a risk-adjusted basis.
VIX : The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The CBOE VIX Tail Hedge IndexSM (VXTHSM) is designed to help cope with extreme downward movements in the market. The strategy provides an efficient way to hedge tail risk and the VXTH Index provides a consistent benchmark for other tail hedge strategies.
U.S. Large cap : A term used by the investment community to refer to companies located in the United States with a market capitalization value of more than $10 billion.
Long position : The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.
Future : an agreement traded on an organized exchange to buy or sell assets, especially commodities or shares, at a fixed price but to be delivered and paid for later.
Option : A contract that allows the holder to buy or sell an underlying security at a given price, known as the strike price.
CPO (Commoditity Pool Operator) : A CPO is an individual or organization which operates a commodity pool and solicits funds for that commodity pool. A commodity pool is an enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts, options on futures, retail off-exchange forex contracts or swaps, or to invest in another commodity pool.
NFA (National Futures Association) : NFA is a not-for-profit membership corporation formed in 1976 to become a futures industry's self-regulatory organization under Section 17 of the Commodity Exchange Act.
CBOE (Chicago Board of Options Exchange) : Founded in 1973, the CBOE is an exchange that focuses on options contracts for individual equities, indexes and interest rates. The CBOE is the world's largerst options market.