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Kennedy Capital Management Review

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Kennedy Capital Management, Inc.

St. Louis-based Kennedy Capital Management (KCM) is a large financial advisor firm that has $4.25 billion in assets under management (AUM). It is a fee-only firm, which means that it only receives compensation from the fees clients pay. (This differs from a fee-based firm, which may earn commissions from third parties.)

The firm and its 30 advisors work personally with a number of individual and institutional clients. Investment management is the premier service at Kennedy, with strategies available across various capitalizations within the equity market sector.

Kennedy Capital Management Background

Kennedy Capital Management was founded in 1980 by chief portfolio manager Richard Sinise and Gerald Kennedy. Sinise has worked in the financial services industry for more than 40 years; Kennedy passed away in 1999. This is an employee-owned firm, so its shares are split between various members of its advisory and leadership staff.

Of the 30 financial advisors employed by Kennedy, several hold the chartered financial analyst (CFA) designation. There is also a certified public accountant (CPA) and an advisor with a certificate in investment performance measurement (CIPM).

What Types of Clients Does Kennedy Capital Management Accept?

Kennedy works with a wide range of clients, including high-net-worth individuals, investment companies, pooled investment vehicles, pension plans, profit-sharing plans, charities, government entities and various corporations. The firm does have a few non-high-net-worth individual accounts, but its preferred minimum account sizes make these accounts rare.

Kennedy Capital Management Minimum Account Size

While Kennedy doesn't provide a standard account minimum, it does have preferred minimums. These can be waived or changed at the discretion of the firm.

  • Micro-Cap: $10 million
  • Small-Cap: $10 million
  • SMID-Cap: $10 million
  • Mid-Cap: $10 million
  • All-Cap: $10 million
  • Small-Cap Select: $1 million
  • Small-Cap Select SRI: $1 million

Services Offered by Kennedy Capital Management

Kennedy provides a wide spectrum of investment services to a range of individual and institutional clients. While the firm started out focusing primarily on small-cap investments, it has since grown to include mid-cap, all-cap and other strategies. They also provide sub-advisory services to certain wrap fee programs and unaffiliated registered investment advisors (RIAs).

Kennedy Capital Management Investment Philosophy

Kennedy takes a bottom-up approach to stock picking. This fundamental practice looks to build client portfolios one stock at a time by evaluating each security based on factors like operations, financials, future value and more. As a result, Kennedy usually invests client assets in U.S. stocks and other domestic securities with strong growth potential. Kennedy does not take short positions, as this goes against its long-term investing philosophy.

While Kennedy's advisors have the final say when it comes to portfolio decisions, they try to tailor each portfolio to the needs of the client. This involves doing a deep dive into each client's risk tolerance, time horizon, liquidity needs and overall investment objectives.

Fees Under Kennedy Capital Management

Kennedy charges annual management fees according to the investment strategy your account adheres to. Within each of these strategies, the firm charges different rates that depend on your AUM level. Here's an overview of what you'll pay at this firm:

Investment Management Fees
Strategy Type Annual Fee Range
Micro-Cap Strategies and Micro-Cap Tax Efficient Strategies 1.00% - 1.25%
Small-Cap Select, Small-Cap Select SRI, Small-Cap Value and Small-Cap Extended 0.80% - 1.00%
Small-Cap Core 0.80% - 0.90%
Small-Cap Growth 0.70% - 0.90%
SMID-Cap Value and ESG SMID-Cap 0.70% - 0.90%
SMID-Cap Growth 0.60% - 0.80%
Mid-Cap Value 0.60% - 0.75%
All-Cap Value 0.70%

Although Kennedy lists its management fees in annual percentages, fees are charged on a quarterly basis. You can choose to pay through a direct deduction from your account or via a mailed, faxed or emailed invoice.

What to Watch Out For

Kennedy Capital Management occasionally charges performance-based fees. According to the firm's Form ADV, "These accounts create an incentive for us to make riskier, more speculative investments than would be the case in the absence of a performance fee." Despite the potential conflict of interest this creates, the firm is bound by fiduciary duty, legally binding it to act in your best interest.

Kennedy explicitly states in its Form ADV that it does not offer financial planning services. If you're interested in finding a financial advisor who can help with financial planning, try SmartAsset's free tool to get matched with advisors near you.

Disclosures

Kennedy Capital Management does not have any disclosures of legal or regulatory issues, which means it has a clean record.

Opening an Account With Kennedy Capital Management

To become a client of Kennedy Capital Management, you can email the firm at clientservice@kennedycapital.com. If you prefer to work over the phone, you can call toll-free at (800) 859-5462 or locally at (314) 262-7777.

Where Is Kennedy Capital Management Located?

Kennedy Capital Management is located in St. Louis, Missouri at 10829 Olive Boulevard. Your proximiity to its office does not affect your abiliity to open an account with the firm.

Tips for Financial Planning

  • Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Wondering how much your investments might grow over the years? Use SmartAsset’s investment calculator to see what kind of growth you might be able to expect. Just don't forget that capital gains taxes will apply to investments not held in a tax-advantaged retirement account.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research