KCM's Komments


August’s various market returns magnified July’s volatility. By the time August ended, Small Cap US stocks were the worst performer down 4.4%, followed by Mid Cap US stocks down 3.8%. Interestingly, Emerging Markets stocks improved during the month but still ended August down 2.5%. The Emerging Markets stocks found themselves sandwiched between Large Cap US stocks, down only 8/10 of 1%, and Mid Cap US stocks down 3.8%. Overall, the best performer was Real Estate stocks which ended the month up 4.8%. The results referred to in this paragraph were all based upon Exchange Traded Funds (“ETFs”) which track specific markets.

Overall, our clients weathered the month’s volatility and as August ended, their accounts tended to have done well versus the markets. Our All Cap Multi Style US Stock Strategy (“ACMS”) finished the month down but less than an equally weighted return of Large, Mid and Small Cap US stocks. Our Large Cap Value US Stock Strategy (“LCV”) was down slightly for the month but substantially ahead of its benchmark indices and positive for the July- August timeframe. Our Emerging Markets Stock Strategy (“EMI”) finished down but about 31% better than its benchmark indices. We continued to hold our China and Taiwan exposures which helped.

Our various Fixed Income Strategies (“BOND”) did very well versus their benchmarks as we kept our shorter duration in place. At month’s end, our BOND strategy was positive and 2 times that of its benchmark indices.

Our Real Estate Strategy (“REAL”) was the month’s big winner. Just like that market’s benchmarks, our REAL Strategy finished in the black at positive 6.4% for the month and up 10.8% for the quarter to date.

All our YIELD Strategy clients, again, received their expected income streams unabated by market volatility. (All specific strategy returns cited herein are before our management fees)


We shall remain fully invested and await further events and facts that could influence our various market, sector and industry exposures.

We are pleased to state that out of tens of thousands of “wealth managers” in our country, only about 3% are nominated and then actually win the 5 Star Professional Award. For 2019, James V. Kelly, CFA has won the award for our firm. He shall be highlighted in Philadelphia Magazine and various websites as we go through year-end.

©2016 Kelly Capital Management, LLC