The investment philosophy for all Kairos Capital Management accounts uses the Prudent Investor Rule as its foundation. This Rule requires the monies of any portfolio to be invested as a “prudent investor” would. Each account will have an investment objective based on the Rule.

The Prudent Investor Rule is based on Modern Portfolio Theory. Simply put, it is a process of reducing risk in a portfolio through diversification both across asset classes and within these asset classes. The base assumption is that the investor desires the maximum possible return on their investment with the lowest possible risk. To desire a higher level of return requires a higher level of risk or assumed volatility of prices in their investment portfolio.

Determining the purpose of the account, distribution needs, time horizon and reviewing all other outside financial resources are crucial to the development of the investment objective.  Once this investment objective is established, Kairos Capital Management will manage the account to this objective going forward. Building and maintaining the portfolio with high quality investments will help in trying to achieve the short and long term goals of each client.