KDI Capital Partners
KDI Capital Partners, LLC is an investment management firm with a long-term track record of investing in publicly traded equities for accredited and qualified individuals, corporations, foundations, and retirement plans. KDI is a registered investment advisor and based in Raleigh, NC. The firm’s history dates back to 1991 and is predominately employee owned.
KDI manages multiple equity-based strategies to suit its clients varying risk tolerances. These strategies include the Concentrated Equities Strategy, the Value Preservation Strategy and the Focused Distribution Strategy. KDI views its approach to analyst coverage as a differentiator. KDI employs a business model based approach to its research versus a sector focused approach. Each of our analysts focuses on a business model, which allows them to cover companies in multiple sectors. KDI conducts extensive fundamental due diligence through a comprehensive primary research process and uses exhaustive financial analysis to identify undervalued market opportunities. The firm adheres to a strict buy-sell price discipline to augment a risk-focused process that emphasizes capital protection consistent with principles of the value investing philosophy.
The Concentrated Equities Strategy is a long-bias all-cap strategy which invests in a limited number of intensely vetted, high-quality public companies. The Concentrated Equities Strategy hedges market risk through its willingness to hold significant amounts of cash and by selling call options against its holdings to provide some downside protection in times when less risk is warranted. Utilizing the flexibly to be in cash and invest across all market caps, KDI seeks to identify attractive risk-reward situations, concentrating our clients' capital in exceptional opportunities that provide a good margin of safety and the opportunity to exceed the returns of the index over time.
The Value Preservation Strategy is designed for more conservative investors seeking greater capital protection with the opportunity for attractive risk-adjusted returns. The Value Preservation Strategy invests in high-quality, typically large-cap companies. The strategy writes long-term, in the money or slightly out of the money call options against the positions. The option terms are generally 6 months to 2 years. The dividends and call option premiums provide meaningful downside protection to Value Preservation investors.
The Focused Distribution Strategy is an unlevered, long-only, capital appreciation strategy that seeks to compound capital by investing selectively in five to eight publicly traded distribution companies. The Focused Distribution Strategy seeks to limit portfolio risk and impairment of capital through a superior understanding of the businesses in which it invests and a strict buy-sell price discipline. Additionally, the Focused Distribution Strategy can hold cash when unfavorable risk / reward dynamics present themselves, augmenting the ability to preserve capital across investment cycles.