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Luther King Capital Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Luther King Capital Management Corporation

Based in Fort Worth, Texas, Luther King Capital Management takes its name from its founder, John Luther King, Jr. It also has offices in San Antonio, Austin and Dallas.

The firm manages portfolios for individuals, trusts, estates, charitable organizations, government entities, corporations and other business entities, foundations, endowments and pension and profit-sharing plans. It also serves as an advisor to LKCM mutual funds, sub-advised portfolios, affiliated private investment partnerships, single-investment partnerships, model portfolio programs and wrap fee programs.

Luther King Capital Management Background

After managing assets for a mutual fund company and investment firm, King opened his own investment advisory in 1979. He started with a two-person office with a combined 17 years of investment experience. Today, the firm employs over 60 advisors.

King owns and controls a majority interest in parent company Southwest JLK Corporation. Other employees have small stakes.

Luther King Capital Management Types of Clients and Minimum Account Sizes

Luther King Capital serves both non-high-net-worth and high-net-worth individuals, as well as investment companies, pooled investment vehicles, pension and profit-sharing plans, charitable organizations, government entities, corporations and other investment advisors.

The firm generally requires a minimum $2,000,000, $3,000,000 or $5,000,000 investment for a separately managed account (SMA), depending on the strategy. For its mutual funds, the minimum is $2,000, and for investment partnerships, the minimums are all currently $250,000. That said, the firm may waive or negotiate terms at its discretion. 

Services Offered by Luther King Capital Management

As noted earlier, Luther King Capital advises and oversees separately managed investment accounts, mutual funds, sub-advised portfolios, affiliated private investment partnerships, single-investment partnerships, model portfolio programs and wrap fee programs - all on a discretionary basis.

The firm also offers investment consulting on a non-discretionary basis.

Luther King Capital Management Investing Philosophy

Through separately managed accounts, Luther King Capital offers:

  • Equity Strategy: which generally holds equity securities of approximately 40 to 65 companies with market capitalizations of at least $2 billion at the initial time of purchase 
  • Small-Cap Strategy: which generally holds equity securities of approximately 75 to 95 companies with market capitalizations between $1.2 billion and $7 billion at the initial time of purchase 
  • Small/Mid-Cap Strategy: which generally holds equity securities of approximately 50 to 60 companies with market capitalizations between $2 billion and $20 billion at the initial time of purchase 
  • Mid-Cap Strategy: which generally holds equity securities of approximately 50 to 60 companies with market capitalizations between $3.5 billion and $35 billion at the initial time of purchase 
  • Fixed-Income Strategy: which typically invests in investment-grade, U.S. Treasury or governmental securities with short-to-intermediate maturities of one to 10 years
  • Balanced Strategy: which generally combines investment strategies for the firm’s equity and fixed income strategies

Generally, the firm applies fundamental analysis, assessing companies based on such criteria as profitability, balance sheet quality, competitive advantages, market share positions, ability to generate excess cash flows, meaningful management ownership stakes, reinvestment opportunities and relative valuation. 

Fees Under Luther King Capital Management

Luther King Capital collects management fees based on a percentage of the client’s AUM. Though the firm may waive or negotiate its fees, there is a $20,000 minimum annual fee for non-institutional separately managed accounts. Here are the tiered fee schedules per investment strategy:

Equity Fee Schedule
AUM Annual Fee
First $2,000,000 1.00%
Next $3,000,000 0.75%
Next $70,000,000 0.50%
Over $75,000,000 0.35%

 

Small-Cap, Small/Mid-Cap and Mid-Cap Fee Schedule
AUM Annual Fee
First $5,000,000 1.00%
Next $5,000,000 0.75%
More than $10,000,000 0.50%

 

Fixed-Income Fee Schedule
AUM Annual Fee
First $2,000,000 0.50%
Next $3,000,000 0.35% 
More than $5,000,000 0.25%   

 

International Equity Fee Schedule
AUM Annual Fee
First $10,000,000 1.00%
Next $20,000,000 0.90% 
More than $30,000,000 0.80% 

Luther King Capital Management Awards and Recognition

CFA magazine named founder King the most inspiring in the investment advisory profession in 2007.

He was also honored with the Daniel J. Forrestal III Leadership Award for Professional Ethics & Standards of Investment Practice by the CFA Institute in 2008.

Additionally, King has served as committee chairman of the investment advisory committee for the Trustees of the Employees Retirement System of Texas and vice chairman of the board to the University of Texas Investment Management Company, which oversees the endowment of the University of Texas a portion of the endowment for Texas A&M University, and trustee and chairman of the board of trustees at Texas Christian University.

What to Watch Out For

Luther King Capital has no legal or disciplinary actions to disclose in its most recent SEC filings.

One thing to note: the firm does not offer financial planning. So if you’re seeking general financial advice, this firm will likely not be a good fit.  

Opening an Account With Luther King Capital Management

To contact Luther King Capital, you can call the firm's headquarters or its various branches.

All information was accurate as of the writing of this article. 

Tips for Finding a Financial Advisor 

  • SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Ask how advisor candidates get paid. Those whose only compensation is the fees they collect from you will likely have fewer conflicts of interests than those who also collect commissions. That said, if any advisors say they are fiduciaries, that means they will work in your best interests.

How Long $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 We weighed potential expenditures for a prospective retiree with a  $1 million nest egg to assess how many years that fund would cover in retirement in America’s largest cities.

We 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 metro areas across the U.S.

We assumed the $1 million would grow at a net annual return of 2% after inflation. 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.