What is your investing experience, history, etc?
Collectively, our team has a over 90 years of professional market experience. Many of our team members hold advanced designations such as Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) practitioner. Joe Kercheville's investment career dates back to 1967. From 1997 to December 2007, Joe Kercheville and Jeff Dabbs managed a hedge fund with an audited, average annual compound return of 15.89%, net of expenses and management fees but prior to the fund performance fee.* This period included challenging investment backdrops such as the Asian Financial Crisis, the Dot-Com bubble, 9-11, and the early stages of the subprime mortgage crisis.
Who do you serve?
We primarily serve families, individuals, corporations and business owners--often managing assets across multiple generations.
What sets Kercheville Advisors apart?
As an independent, family-run business, you'll receive a level of professional service and personal attention not found on Wall Street. We are financial fiduciaries; we do not make or sell proprietary products. We utilize "separately managed accounts" which allows for maximum transparency, control and tax-efficiency. We work as a team, meeting each morning to review overnight market movement, economic data, company-specific news items, and to discuss observations and timely opportunities.
What is a fiduciary?
A fiduciary is a person that owes to another the duties of good faith and trust. It represents the highest legal duty of one party to another and involves being bound ethically to act in the other's best interests
How is Kercheville Advisors compensated?
As a fee-only investment advisory, our only compensation comes from our clients. We do not receive compensation from any financial institution for financial products that we utilize. This allows us to be objective and unbiased, always seeking the best path for each client's capital.**
How often do you communicate with clients?
Our policy is to communicate with clients at least two times per year, but in reality, we communicate as much as is necessary. We won't flood your inbox with unsolicited marketing material, but our team of portfolio managers is never more than a quick phone call or email away. We speak and communicate with clients about their unique circumstances frequently and confidentially.
What will my portfolio look like?
Within the equity portion of portfolios, we believe that direct stock ownership of the innovative and successful companies that are shaping our future offer the best long-term returns. Portfolios may also hold cash/money-market funds, exchange-traded funds (ETFs), closed-end funds (CEFs), mutual funds, and individual bonds. While each client's account is separately-managed and uniquely tailored to meet their needs, assets held across our managed accounts often share core portfolio positions. Additionally, our portfolio managers regularly invest alongside our clients. We "eat our own cooking" so to speak.
What do you look for in an investment?
Good management; visionary leadership; confidence in the company's growth plans and capital allocation strategy; a competitive advantage; a healthy balance sheet; a strong company culture.
Do you offer loans?
For client's with over $1 million in qualifying assets, we offer collateralized private banking services through the Bank of New York-Mellon, the parent company of our custodian and clearing firm, Pershing Advisor Solutions.
What are your fees?
Portfolio management fees are based on each client's aggregate assets under management. In general, the larger the account, the lower the management fee. Our management fees range from 2% to 0.75% annually (billed in equal quarterly installments).
Do you have a required minimum initial investment?
Our minimum initial investment is $250,000 in aggregate household assets.
*All investments involve risk and may lose money. Kercheville Advisors makes no assurance that investment objectives will be met. Past performance is no guarantee of future results. Kercheville Advisors retains the rights to revise or modify portfolios and strategies if it believes such modifications would be in the best interest of its clients.
**Advisory Agents of the Firm may be licensed insurance agents for AKEA Insurance, an affiliated insurance company. If you elect to implement the plan or buy insurance through the Firm's advisory agents, the insurance agent may receive a commission from the insurance sale, which includes life, accident, disability and fixed annuities. This present a conflict of interest to the extent that the advisory agent recommends the purchase of an insurance product to you which results in a commission being paid to the advisory agent as an insurance agent. We will seek out the products of any company, agency or brokerage that have products fitting your needs. You are under no obligation to purchase insurance through our affiliated company.
