Race for information
Compete for short-term data edges like earnings and receipt-sales data.
Strategy
How We Invest
Our edge comes from knowing a few businesses deeply and holding them for years.
For qualified investors
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The material beyond this point is intended for Accredited Investors and Qualified Purchasers, as defined under U.S. federal securities laws. By continuing, you confirm that you meet one of those definitions.
To request the pitch deck and offering documents, email kai@kbcapital.fund.
Why now
The passive distortion
“Passive investing is worse than Marxism.”
Inigo Fraser-Jenkins, Sanford C. Bernstein, 2016
Index funds’ share of U.S. long-term fund assets
Source: Investment Company Institute, 2025 Investment Company Fact Book (year-end).
Capital misallocation
Passive funds buy index members by weight, not merit. Dollars flow in regardless of fundamentals or price.
Growing inefficiency
With fewer investors pricing on fundamentals, gaps widen between what a business is worth and where it trades.
Opportunity for the prepared
We know how the passive plumbing works, and we take the other side of its forced, mechanical trades.
KB Capital is built to supply that scarce price discovery.
Our process
Six disciplines
How we approach insight, moats, management, patience, conviction, and the downside.
How others do it
How we do it
Insight
Compound insight
Know a few businesses deeply and see how emerging trends benefit them for years.
Moats
Chase growth
Pay up for momentum and hot narratives, often at almost any price.
Demand durability
Focus on pricing power, brands, switching costs & demographically driven demand.
Jockeys
Trust the horse
Take management’s narrative at face value and price the stock off today’s reported numbers.
Judge the jockey
Independently assess leadership’s skill and track record before trusting the numbers.
Patience
Trade the quarter
Judged on three-year windows, so they turn the book over constantly.
Own for decades
Ideal holding period is forever: low turnover compounds and defers tax.
Conviction
Hug the index
Spread thin across a benchmark-shaped, closet-index book.
Concentrate
Run a focused 9–16 names where we genuinely have an edge.
Downside
Diversify on paper
Lean on a covariance matrix and historical correlations.
Protect capital
Uncorrelated businesses, cash when valuations run rich, options to hedge.
Details of the partnership structure, liquidity, and reporting are set out separately.
About the partnership →