Inefficiencies exist in the small to mid cap universe and these inefficiencies can create investment opportunities. The challenge for investors is – how do you systematically and consistently identify and exploit those opportunities? At Kennedy Capital Management, we pursue this objective by dedicating significant resources to domestic small and mid cap equity research. These resources include a staff of six portfolio managers, one director of research, thirteen analysts (with industry specific expertise), and three equity traders. We also give these professionals the tools necessary to do intense, bottom-up, fundamental research.  The process is labor intensive, but gives us an edge when analyzing companies.  Our process helps the small and mid cap team identify changes in market share, new product cycles, and industry trends that may presage the correction of inefficiencies in an individual equity.

We believe we have made the commitment necessary to identify, research, and exploit these opportunities for the benefit of our clients.  Armed with the necessary tools, our investment staff goes to work uncovering investment ideas that many other managers either overlook or don’t have the resources to uncover. The first step is to identify potential investment candidates through our proprietary screening process. Every day, on a real-time basis, our analytical staff pours over the quarterly results issued by virtually every publicly traded small and mid cap company. This labor-intensive process is critical in uncovering investments that are under-followed by most investors. Once the universe is narrowed and potential new buy candidates are identified, our staff does the intense fundamental analysis critical to good decision making in the small and mid cap universes. Speaking directly with management, we ask questions aimed at refining our perspective on each company, and we often follow these contacts with site visits.  Our staff performs in-depth fundamental analysis, ultimately investing in companies with an ability to generate returns in excess of their cost of capital and reinvest back into the business. We evaluate the business enterprise selecting what we believe to be the best investment opportunities for our portfolios.

Kennedy Capital goes beyond standard screening techniques to uncover opportunities in the smid cap market that others overlook.