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|
|Small-Cap, Small/Mid-Cap and Mid-Cap Fee Schedule|
|More than $10,000,000||0.50%|
|Fixed-Income Fee Schedule|
|More than $5,000,000||0.25%|
|International Equity Fee Schedule|
|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.
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