Morningstar Advisor - October/November 2012 - (Page 58)

Undiscovered Manager Clients Have a Friend in Luther King By Kate Rushkewicz Reichart Texan has built a $9.6 billion under-the-radar firm by delivering strong results and building relationships, instead of marketing and gathering assets. Luther King Capital Management is one of the biggest asset managers most mutual fund aficionados have never heard of. The employeeowned firm doesn’t have a distribution arm and lacks a presence with advisors yet still has $9.6 billion of assets under management. Its eight mutual funds have just $1.5 billion in assets, more than half of which are in a small-cap strategy. “The firm was not built to be product-driven because of its history. We were investors before we were a firm,” founder and president J. Luther King Jr. says. After nearly 50 years in the industry, King knows gathering assets isn’t a formula for success, or at least the way he wants to do things. He’s more interested in delivering strong investment results for the firm’s client base, which includes high-net-worth individuals, endowments, foundations, pensions, trusts, and estates. Beyond that, King takes pride in developing relationships with the firm’s clients on both a professional and personal level. “I can’t tell you how many funerals and weddings you go to in the investment business,” he says in his slight Texas drawl. With a charming and approachable personality, it’s easy to envision King offering advice to a client 58 Morningstar Advisor October/November 2012

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2012

Morningstar Advisor - October/November 2012
Letter From the Editor
Ill Communication
Do You Use Factor-Investing Strategies?
Practicing What She Preaches
How to Determine the True Price of ETFs
The Quant Factor
Managers Dispute the Death of Equities
Investments á la Carte
Investment Briefs
Five Inconvenient Truths of Manager Research
Health Care’s Outlook Clarifies
Exploring the World of Factors
Uncloaking the Alpha Machine
Factor Strategies Gain Footholds in Practices
Big Mo
Fitting Factors Into the Formula
Clients Have a Friend in Luther King
Less-Liquid Holdings Mean More-Solid Results
Retirement-Withdrawal Strategies Quantified
Amid Turmoil, Don’t Discount Foreign Equities
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Should I Stay or Should I Go?

Morningstar Advisor - October/November 2012