KCM's Komments


July was a sideways moving month for domestic stocks, emerging markets’ stocks, bonds and real estate. August was a trough month for everything other than bonds and real estate. September saw upward movement for domestic stocks for half the month, then a rollover to a modest decline to quarter end. The larger the market capitalization exposure, the better one did in domestic stocks for the month and quarter.

Emerging markets’ stocks also saw a bump up for the first half of September, followed by a rollover to the downside to quarter end. On balance, they finished the quarter lower than the prior quarter and were the worst of all asset classes for the quarter.

Real estate and bonds saw themselves stuck in a channel for all of September. By quarter end, real estate was much higher than at the end of the prior quarter and bonds were little changed.

On balance, for the quarter, the best performance came from real estate, followed by bonds, then domestic stocks and lastly emerging markets’ stocks.


Our various strategies followed the market trends discussed above. Within our domestic stock strategies, our large cap value stock picking strategy outperformed the more general all cap multi style strategy. Both had positive returns for the quarter and positive, double digit returns for the year to date.

Our emerging markets’ stock strategy had a small negative return for the quarter but finished in positive return territory for the year to date.

Our various fixed income strategies finished the quarter and year to date well ahead of their benchmarks and were positive for the quarter and year to date.

Our real estate strategy was, again, the big winner for both the quarter and year to date. In fact, for the quarter it was up just over 10% and year to date up just over 33%.

Our yield oriented strategy again provided the income clients expected and had a positive return for the quarter and a positive, double digit return for the year to date.


We shall remain fully invested and await further events and facts that could influence our various market, sector and industry exposures as well as defensive cash position level.

©2016 Kelly Capital Management, LLC