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Investment Strategies & Special Situations

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Kershner Grosso Is Your Partner in Comprehensive Investment Strategies & Special Situations

At KGC, we prioritize investments in companies with consistent earnings growth and focus on large corporations with potential for capital appreciation. Our investment strategies encompass strategically selecting equities, emphasizing companies with a proven track record of sustainable growth. Additionally, we strategically incorporate fixed-income securities into our portfolios to balance risk and optimize returns. Through prudent diversification and a steadfast avoidance of market fads, we aim to deliver long-term value for our clients while adhering to sound investment principles.

Investment Strategies

Focused Equity Investments for Sustainable Growth

For equity accounts, we emphasize investments in companies with consistent and predictable past and projected growth in earnings and cash flow. We believe that growing earnings ultimately propels stock prices higher. Our equity selections are primarily based upon a company’s current price/earnings ratio relative to its current and expected growth rate in revenues and earnings. We are not market timers, and economically sensitive stocks are generally not considered potential candidates for our clients’ accounts. We primarily focus our investments on the common stock of large corporations where our research reveals the potential for excellent capital appreciation.

Diverse Portfolio Offerings Beyond Equities

In addition to equities, many of our clients’ portfolios historically may, from time to time, contain significant holdings of U.S. Treasuries, municipal bonds, high-grade corporate fixed income obligations, and publicly traded master limited partnerships. In terms of maturities on the bond portion of our clients’ accounts, the mix of short-term vs. long-term highly-rated debt instruments will vary over time, depending upon our assessment of present and future market yields, the interest rate yield curve, and the expected rates of return for each respective instrument. A portfolio’s composition between tax-free municipals and taxable bonds at any given time will reflect the client’s income tax bracket and the need to minimize income tax liabilities.

Balancing Risk Through Diversification

We employ reasonable diversification to balance risk. This is accomplished by having portfolios invested in a cross-section of securities, which we follow carefully, rather than constructing a portfolio based upon a broad range of industries. We tend to take more concentrated positions in situations that appear particularly promising. Overall, we try to avoid diluting our effects by owning too many issues relative to the total account. We do not maintain high turnover of portfolios, nor are our equity purchases based upon faddish concepts in the marketplace.

Asset Classes That We Recommend Be Considered in KGC Portfolios

High quality large-cap & mid-cap growth stocks

These securities offer potential capital appreciation. These stocks, as a group, typically do not pay significant dividends.

Publicly-traded master limited partnerships (MLPs)

These securities offer attractive annual income as well as some capital appreciation possibilities. The payouts on many of these publicly traded partnerships are presently between 5% to 7.5%. These investments are strongly tax-preferenced, too, and that provides a further benefit in taxable accounts.

Conservatively-focused stocks that pay attractive dividends

These stocks typically pay dividends of 2% to 5% a year, or more, and they can have some capital appreciation potential.

Fixed income obligations

These securities are broadly composed of U.S. Treasury, Corporate, and Municipal debt obligations along with bank Certificates of Deposits (CD’s).

Small capitalization growth stocks

These securities are generally growing their sales and earnings rapidly and usually do not pay dividends. They are only suitable for certain accounts.

Money-market funds

As needed.

Special Situations


Kershner Grosso also periodically identifies special situations, often recently established micro-cap growth stocks where our in-depth research, including meetings with management, visits to company facilities, interviews with suppliers and product purchasers, and continued contact with company executives, may uncover the potential for attractive long-term capital gains. These companies, though potentially promising, can be risky and unusually volatile. We recognize that our special situations will not be suitable for many of our clients’ risk profiles.


Navigating Restrictions
& Disclosures

Special situation securities often come with restrictions that limit or prohibit the sale of the security for a pre-determined period of time. As part of our commitment to transparency, we disclose any limitations to account holders prior to their initial purchase. Additionally, we facilitate the private placements of these publicly traded micro-cap securities, ensuring full disclosure and understanding of the investment landscape.

Take proactive steps towards managing your portfolio effectively.