Welcome to
KPS Advisors LLC

Independent outsourced investment advisory firm based in NYC

Focus on process and people

We focus more on process and people than past performance. We always strive to understand a manager’s performance drivers. Was it skill or luck? Is it sustainable going forward?

Play defense first

 Our investment process has always been “play defense first”. We strive to preserve capital by focusing on individual manager’s risks as well as risks on the overall portfolio level. Effective diversification is key. 

Specialize in US and Asia

We have strong sourcing capabilities for alternative investments in the US and Asia. We understand Asian managers better and build closer relationships because of our proficiency in Mandarin and knowledge of Asian culture.  

Data analysis

Our engineering background allows us to analyze and interpret data and emerge with real insights. We present our findings in a clear and conclusive manner and make smart decisions based on it. 

About Us

  

KPS Advisors LLC is an independent outsourced investment advisory firm based in NYC.

 

We work closely with High Net Worth Individuals and Single Family Offices and provide them with thoughtful, curated advice on US and Asia hedge funds so that they can allocate their time and capital more effectively.

 

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Founder

Mr. Kwang Peng (KP) Sim is founder of KPS Advisors LLC.

  

KPS Advisors LLC was founded in 2014 to advise a NYC based single family office on their existing investment portfolios.
 

KP had spent a major portion of his investment career working with family office and high net worth investors. Prior to founding KPS Advisors LLC, KP worked as a Director at Saguenay Strathmore Capital and was focused on manager sourcing, investment due diligence, risk analysis and risk management. Over time, KP’s professional network grew larger and included family office and institutional investors. When a NYC based single family office decided to hire him, KP started his own advisory firm.
 

KP completed two summer internships at the Greenwich Roundtable and Indian Harbor which provided him a strong head start for his investment career. Prior to an investment career, KP had worked as a chemical engineer at ABB Lummus Global in New Jersey (US) and at Kellogg Brown and Root in Singapore from 2000-2005. After he decided to make a career switch into finance, KP invested his savings and successfully raised money within one year to fully self-sponsor his graduate school program at Columbia University in NYC.
 

KP earned a MSc Operations Research from Columbia University in 2006. He attended the National University of Singapore and earned a Bachelors in Chemical Engineering in 2000. He is a CAIA charter holder since Mar 2009.
 

KP also served in the Singapore Armed Forces for 2.5 years as a Combat Engineer. KP was born and raised in Singapore and is fluent in both English and Mandarin. Currently, KP resides in Brooklyn with his rescue Schnoodle Myles.

Services

Manager sourcing and selection

  • We possess stringent criteria when selecting managers. We can much easily tolerate loss of opportunity than loss of capital. We focus on managers with:
    • Highly differentiated portfolios.
    • Attractive track record > 12 months.
    • Assets under management < $2B (US managers) and < $1B (Asia managers).
    • Use little to no leverage.
    • Reasonable liquidity profile.
  • We belong to a close-knitted and experienced global network to help in global idea generation and manager due diligence.

Investment due diligence

  • Qualitative due diligence through interviews with fund managers to determine their comparative edge by focusing on manager experience, soundness and quality of investment process/style, risk management, hedging methodology and business skills.
  • Quantitative performance and risk analysis on both individual manager and portfolio levels.
  • Holdings based (13F) analysis to understand what has been driving performance.
    • Decompose performance into stock selection and sector allocation.
    • Develop appreciation of portfolio concentration, uniqueness of names, turnover       over time.
    • Be cognizant of overlap in names between existing and prospective managers.       Crowdedness in common names is a serious current problem in the hedge fund industry.
  • Perform due diligence on operational and business aspects of the firm.

Portfolio construction and asset allocation

  • Create customized portfolios based on each client's risk/reward objectives and liquidity needs.
  • Focus on investment diversification to improve returns consistency, maximize risk-adjusted returns and reduce market correlation.
    • ​Diversification based only on asset class does not work well as we learnt in 2008 that correlations among different asset classes go to 1 under extreme market conditions.
    • We diversify our portfolios in terms of investment strategy and style, portfolio net and gross exposures, time frame, sector, geography and market cap. 

Why us?

We have a good balance of experience, enthusiasm and initiative.
 

We possess a genuine interest in helping our clients achieve their investment goals.
 

We always provide thoughtful, honest and unbiased opinions.
 

We pay attention to our client's needs, spend sufficient time with them to create customized solutions for them.
 

We understand the importance of trust and confidentiality when working with our clients.

 

We always remain vigilant. We are always on the lookout for red flags and we act in a nimble fashion.  

 

​We only recommend fund managers we truly believe are best in breed. 

Recent interviews and articles

Interview with Family Office Insights

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Contact Us

Call Us Today

Kwang Peng (KP) Sim, CAIA

Email:        kp@kpsadvisors.com
Phone:      +1 646 338 0455

Skype:       kpsim282
​Wechat:    kpsim288 


Linkedin profile

https://www.linkedin.com/in/kwang-peng-kp-sim-85a7a816/

  

Based in ​New York and Singapore (Jan & Feb)