Kerusso: A Portfolio of Value Creating Opportunities (VCO)

Our Investment Philosophy

“For everything there is a season, a time for every activity under heaven.”
– Ecclesiastes 3:1

Kerusso’s proprietary bottom-up methodology identifies financially productive companies trading at attractive valuations. We define these companies as Value Creating Opportunities (VCO). We believe that while we cannot predict the timing, duration or magnitude of outperformance for these VCOs, we can position ourselves to achieve it through the strict adherence to a valuation methodology that identifies stocks that can produce high quality and consistent client returns. 

Guiding Investment Principles

  • Evolving economic and industry factors create changing businesses conditions, or "seasons" , which can affect a company's performance, its stock price, and consequently, its valuation.
  • A company's valuation fluctuates between being undervalued, fairly valued, or overvalued. When a stock is undervalued, we buy it. When fairly valued, we sell it. When overvalued, we avoid it.
  • Our proprietary valuation methodology identifies financially productive companies whose stocks are attractively valued. We call such companies Value Creating Opportunities (VCO).
  • We do not own stocks merely because they appear "cheap". We analyze VCO candidates based on a wide range of performance-based characteristics to confirm its return potential and avoid "value traps".
  • KCM manages the portfolio to create a margin of safety and improve return potential.

 

*Past performance is not a guarantee or a reliable indicator of future results. Investing involves risk and principal loss is possible. This strategy’s returns may fluctuate in response to one or more of many factors, that include financial condition of individual companies; the business market in which individual companies compete; industry market conditions; interest rates; general economic environments; portfolio management activities, etc.

Information presented is for informational purposes only. It is not intended as investment advice. It is not intended as investment advice nor an opinion or a recommendation as to the appropriateness of investing in any particular security, asset class, strategy, or product. Nothing in this publication is intended to be relied upon as a forecast or research; legal, tax, securities, or investment advice.

© 2025 Kerusso Capital Management, LLC