A. Firm Information
Kailix Advisors LLC (“Kailix” or the “Advisor”) is a registered investment advisor with the U.S. Securities and
Exchange Commission (“SEC”). Kailix, which is organized as a Limited Liability Company (“LLC”) under the laws
of the state of Florida. Kailix was founded in October 2020. Kailix is owned and operated by Manish Mittal
(Principal and Chief Compliance Officer). This Disclosure Brochure provides information regarding the
qualifications, business practices, and the advisory services provided by Kailix.
B. Advisory Services Offered
Kailix offers investment advisory to individuals and high net worth individual (each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. This is achieved through regular personal Client contact. Our fiduciary commitment is further
described in our Code of Ethics. For more information regarding our Code of Ethics, please see Item 11 – Code
of Ethics, Participation or Interest in Client Transactions and Personal Trading.
Investment Management Services
Kailix provides customized investment advisory solutions for its Clients. This is achieved through continuous
personal Client contact and interaction while providing discretionary investment management and related
advisory services. Kailix works closely with each Client to identify their investment goals and objectives as well
as risk tolerance and financial situation in order to create a portfolio strategy. Kailix will then construct an
investment portfolio, consisting primarily of exchange-traded funds (“ETFs”), mutual funds, individual stocks,
and/or individual bonds to achieve the Client’s investment goals. Advisor may retain certain legacy investments
based on portfolio fit and/or tax considerations.
Kailix’s investment strategies are primarily long-term focused, but the Advisor may buy, sell or re-allocate
positions that have been held less than one year to meet the objectives of the Client or due to market conditions.
Kailix will construct, implement and monitor the portfolio to ensure it meets the goals, objectives, circumstances,
and risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable restrictions
on the types of investments to be held in their respective portfolio, subject to acceptance by the Advisor.
Kailix evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. Kailix may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. Kailix may recommend specific positions to increase sector or asset class weightings. The Advisor may
recommend employing cash positions as a possible hedge against market movement. Kailix may recommend
selling positions for reasons that include, but are not limited to, harvesting capital gains or losses, business
or
sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the position[s]
in the portfolio, change in risk tolerance of the Client, generating cash to meet Client needs, or any risk deemed
unacceptable for the Client’s risk tolerance.
Retirement Accounts – When deemed to be in the Client’s best interest, the Advisor will recommend that a Client
take a distribution from an ERISA sponsored plan or to roll over the assets to an Individual Retirement Accounts
(“IRAs”), or recommend a similar transaction including rollovers from one ERISA sponsored Plan to another, one
IRA to another IRA, or from one type of account to another account (e.g. commission-based account to
fee-based account). In such instances, the Advisor will serve as an investment fiduciary as that term is defined
under The Employee Retirement Income Security Act of 1974 (“ERISA”) and/or the Internal Revenue Code
(“IRC”), as applicable, which are laws governing retirement accounts. Such a recommendation creates a conflict
of interest if the Advisor will earn a new (or increase its current) advisory fee as a result of the transaction. No
client is under any obligation to roll over a retirement account to an account managed by the Advisor.
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At no time will Kailix accept or maintain custody of a Client’s funds or securities, except for the limited authority
as outlined in Item 15 - Custody. All Client assets will be managed within the designated account[s] at the
Custodian, pursuant to the terms of the advisory agreement. Please see Item 12 – Brokerage Practices.
C. Client Account Management
Prior to engaging Kailix to provide investment advisory services, each Client is required to enter into a written
agreement with the Advisor that defines the terms, conditions, authority and responsibilities of the Advisor and
the Client. These services may include:
●Establishing an Investment Strategy – Kailix, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
●Asset Allocation – Kailix will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation and tolerance of risk for each Client.
●Portfolio Construction – Kailix will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
●Investment Management and Supervision – Kailix will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
Kailix does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by Kailix.
E. Assets Under Management
As of December 31, 2022, Kailix manages approximately $281,000,000 in Client assets, $186,000,000 of which
are managed on a discretionary basis, and $ 95,000,000 of which are managed on a non-discretionary basis.
Clients may request more current information at any time by contacting the Advisor.