Ike Kier built several profitable textile, telecom, internet and real estate companies serving as CEO, Chairman, and active board member.
In addition to recognizing market opportunities, Ike's success came from making key operational and strategic changes that created value in those companies. Moreover he coupled this with identifying and selecting talented people, and carefully designing incentives for the success of the enterprise.
When Ike turned his focus to managing his money, he partnered with Ilya Zaides, an attorney who advised companies, banks, and investors in their mergers, acquisitions, financings and restructuring activity. Together Ike and Ilya, by selecting the right individuals, have built a fund that provides a fair structure, full transparency, and has an alignment of interests with its LPs.
KG Investments Fund was set up by Ilya and Ike to outperform the S&P 500. KG emphasizes research. We seek to understand the limited number of companies and securities we invest in, better than the market does.
We want to grow our capital over the long-term and we avoid distractions from short-term fluctuations. Instead, we treat volatility as an opportunity to buy or sell our core positions at prices that we believe do not reflect intrinsic value. We seek out - and listen to - opposing viewpoints. We push each other to act rationally and make decisions on the basis of facts and not emotion or ego.
Just as important, we recognize that the wrong incentives can misdirect any good team. A typical hedge fund manager is encouraged to take unwarranted risks because he can make multiple times more money through incentive fees than he can on the money he's invested in his own fund. This behavior is made worse by the fact that clients often subsidize the manager's losses.
We're different. Our interests are aligned with our clients because we make far more on the money we've invested in our fund than we ever can on incentive fees. We treat the fund's money like our own... because it is.