Overview

Founded in 1986 by Robert Kessler, the Kessler Companies specialize in creating meaningful return opportunities from US Treasuries. With special knowledge of the Treasury financing market, independence from Wall Street, and objective macro-economic analysis, Kessler manages portfolios of Treasuries and Treasury futures with an aim to create returns competitive with other asset classes like stocks and corporate bonds.

The Kessler Companies, Inc. include both Kessler Investment Advisors, Inc., who manage portfolios on a fee basis, and Kessler & Company Investments Inc., a broker/dealer firm doing transactional business in Treasuries and futures.

Kessler Investments Advisors, Inc., founded in 1994, is a Registered Investment Advisor, a commodity pool operator and commodity trading advisor with the Commodity Futures Trading Commission. It is also a member of the National Futures Association (NFA).

Kessler & Company Investments, Inc., an affiliate of Kessler Investment Advisors, Inc., was established in 1986. It is a registered brokerage firm with Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC), as well as an Introducing Broker with the NFA.

Please note: Kessler does not take custody of funds. Kessler interacts with segregated accounts held with a qualified clearing firm.

Currently, we open new accounts in your name with:

Jefferies, LLC. for Treasuries and Repo
ADM Investor Services, Inc. (Parent, Archer Daniels Midland Company) for Futures

Why Kessler?

“Using measured amounts of leverage, we can be positioned anywhere on the yield curve with any amount of exposure or duration, freeing us up as opposed to a mutual fund. In rising rate environments, we can also not just protect capital by shortening duration, but actually capitalize by being short.” —Robert Kessler, CEO of the Kessler Companies

Using US Treasuries exclusively represents the evolution of Robert Kessler’s 40+ year career. After working with and managing other asset classes including equities, commodities, mortgage bonds, government agency bonds, and other sovereign debt, Treasuries emerged as the most optimal asset to produce returns.

Treasuries are unparalleled in net cash-flow, liquidity, and range of utility. With the freedom to be long or short, use measured amounts of leverage, and choose any amount of exposure at any place on the yield curve, Treasury portfolios can produce risk-adjusted returns competitive with any other asset class.

Success in US Treasury management is largely dependent on being correct about the general direction of interest rates which in-turn, is dependent on the direction of the economy. The US economy has the world’s most robust statistical history, allowing us to formulate opinions tested against 50+ years of data.

We have a hard-won reputation for being steadfast with our economic beliefs; however unpopular they may be. By being separated (geographically and philosophically) from Wall Street, we have the independence to forecast the economy objectively and with our long history, the stature to defend it.

Customized PORTFOLIOS

We create portfolios with volatility-levels to meet a client’s needs. Accounts can be managed with low volatility like a money market fund (with commensurate lower opportunity) or with higher volatility and opportunity similar to a hedge fund.

Superior Customer Service

We are known for our rapport with clients and encourage direct communication with principals and back-office staff. We focus on explaining Treasury market dynamics, providing up-to-the-minute market commentary, and providing account analytics in simple terms.

DETAILED PORTFOLIO ACCOUNTING

Due to the intricacy of repo market accounting, we have built a robust back-office and valuation system to calculate the net liquidation value of our investments each day. We track our client’s funds in parallel with partner clearing firms to correct differences that occur.

Competitive Pricing

We offer competitive fees and pricing for both discretionary and non-discretionary services.

US Treasuries

In general, Treasuries are an underutilized asset class; often characterized as the last resort when nothing else works. We believe they can dominate a portfolio.

Treasuries, represent a hedge against anything ‘risk-on’ in a portfolio. In addition, without credit risk, Treasuries represent the asset with the closest correlation to economic growth and inflation.

  • No unpredictable credit spread
  • Capitalize from interest rate movement
  • Financed for the lowest rate in the financial system
  • Tremendous liquidity

Leadership

For over 30 years, Kessler has been advising investors, managing capital invested in US Treasuries and managing US Treasury funds.