Model portfolios at Kerns Capital Management are risk-based and have long-term growth of capital as the primary objective. As a secondary, but equally important objective, the portfolios seek to manage volatility and market risk. The primary goal of the portfolios during bear markets is capital preservation.
Our process is based on a combination of tactical and strategic investment principles designed to optimize the asset allocation and protect against catastrophic loss. Equity and income-based mutual funds or ETFs are used to implement the strategies. During major market corrections, we will take some or all of the equity holdings to cash in an effort to preserve capital.
The portfolios include Aggressive, Moderate, Conservative, and Stable.