On Wednesday, September 23rd, Jim Kitzinger (CFA,
CPA) visited the AIM class to talk about his firm’s investment strategy and
process. He is a Principal and Portfolio
Manager at KLCM, an independent, registered investment advisory firm located in
Milwaukee, Wisconsin. Mr. Kitzinger has over 30 years of investment experience.
He discussed KLCM’s equity investment philosophy and process
by saying that they are bottom up stock pickers and focus on out of favor and
neglected companies. They believe that cash flow is critical for shareholders
and valuation – and to protect the downside. They seek firms that possess a
catalyst to drive earnings and to realize value.
Consistent with the approach taken by students in the AIM
program, KLCM’s process is driven by intensive research; an understanding of
company and industry drivers; clear and achievable management objectives; and
seek favorable risk/reward supported by valuation disciplines. They run concentrated
portfolios of 25 to 30 stocks and will add to and trim positions to take advantage
of market volatility and to manage risk.
The students asked questions and had an opportunity to talk
with Mr. Kitzinger in more detail after class. We appreciate the efforts of
local portfolio managers to visit our classroom – these meetings keep the ‘applied’
in the AIM program.
