Indeed, since the beginning of the year, Kelmoore has added five distribution agreements with broker-dealers and wirehouses including, Merrill Lynch, Paine Webber, First Union and Raymond James, he said. Kelmoore now has over 220 different agreements with regional broker/dealers and wirehouses, which has prompted the firm to add 22 new external wholesalers this year, he said. In addition, 11 new inside sales reps have been added.

Those wholesalers will not be selling the funds' performance, however. The Kelmoore Strategy Fund posted a negative 14.5% return last year and, through July of this year, had posted an improved, but still negative, 4%, according to Morningstar. The Kelmoore Strategy Eagle fund has fared much worse this year, which is the first year Morningstar has tracked it. Year to date, the fund has posted a negative 32.77% return. Through June 30, the firm's Liberty Fund had posted a negative 13.2%, according to Kelmoore data.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.