KCM Celebrates Overall 4-Star Morningstar Rating for Small Cap Value Fund

Rhea-AI Summary

Kennedy Capital Management's small cap value fund (KVALX) has earned a prestigious 4-Star Morningstar Rating, evaluated against 477 funds in the Small Cap Value Category as of May 31, 2025. The fund, launched in 2022, is managed by veteran investors Frank Latuda Jr. and McAfee Burke, leveraging a strategy that has been successful since 1983. The fund's underlying Small Cap Value strategy has demonstrated consistent performance, ranking in the top quartile for 1, 3, 5, and 10-year periods ending March 31, 2025, according to NASDAQ eVestment database. KVALX employs a fundamental, bottom-up investment approach, focusing on companies with favorable cash flow values relative to market capitalization, aiming for portfolios with below-market valuations while maintaining growth characteristics at or above benchmark levels.

Positive

• Achieved 4-Star Morningstar Rating among 477 funds in Small Cap Value Category
• Strategy ranks in top quartile for 1, 3, 5, and 10-year periods
• Managed by experienced team with strategy dating back to 1983
• Demonstrates consistent outperformance over multiple time periods

Negative

• None.

ST. LOUIS, MO / ACCESS Newswire / June 23, 2025 / Kennedy Capital Management LLC (KCM), a specialist in micro, small, and mid-cap investment management services, is proud to announce that its small cap value fund (KVALX) has received an initial 4-Star¹ overall Morningstar Rating™. This total return achievement is measured against 477 funds in Morningstar's Small Cap Value Category as of May 31, 2025, and is calculated based on Morningstar Risk-Adjusted Returns. This recognition underscore Kennedy's commitment to delivering strong, risk-adjusted returns over time.

The 4-star rating for KVALX is particularly significant given the long-standing success of its underlying investment strategy, which has been a cornerstone of our firm since 1983. The fund benefits from the adept management of Frank Latuda, Jr., CFA^®, who has guided the strategy for over two decades, and McAfee Burke, CFA^®, who has brought valuable perspective and experience to the portfolio management team in recent years. While the strategy was made available in a mutual fund format in 2022, this Morningstar rating validates its enduring strength and success across both the institutional and retail worlds. Furthermore, as per the NADSAQ² eVestment™ database, the Small Cap Value strategy ranks in the top quartile for the 1, 3, 5, and 10-year periods ending March 31, 2025, highlighting its consistent outperformance over time.

KVALX benefits from the experience of a dedicated centralized team of research analysts. This cohesive team employs a fundamental, bottom-up investment approach, meticulously investigating individual companies within their investable universe. Under the guidance of Mr. Latuda and Mr. Burke, the fund seeks to identify companies across the value spectrum with favorable cash flow values relative to their current market capitalization, aiming for a portfolio with valuations below and growth characteristics at or above those of the benchmark.

"We established KVALX with investor demand in mind. The underlying strategy, professionally managed by Frank and McAfee, has long been available to institutional investors but has now been opened up to others," says Don Cobin, CFA^®, CEO of KCM. "Achieving a 4-star¹ rating for our small cap value fund is a testament to the skill and dedication of our investment team and the consistent application of our disciplined research process. We are proud to offer investors a range of compelling options within the equity space."

 

About Kennedy Capital Management LLC

Founded in 1980, St. Louis-based Kennedy Capital Management LLC delivers investment strategies to corporate and public pension funds, endowments, foundations, multi-employer plans, and high-net-worth individuals. As of March 31^st, 2025, KCM managed $4.5 billion in assets. The privately held registered investment adviser specializes in the management of small and mid-cap strategies across the growth-value spectrum. KCM integrates environmental, social, and governance (ESG) considerations into its research process and has nearly 20 years' experience managing socially responsible client accounts. For more information, visit www.kennedycapital.com or email funds@kennedycapital.com.

¹Past performance is no guarantee of future results. Rating reflects fee waivers in effect; in their absence, the rating may have been lower.

Investors should consider the Funds' investment objectives, risks, charges, and expenses carefully before investing. This and other important information is contained in the Funds' full prospectuses and summary prospectuses, which can be obtained by visiting www.kennedycapital.com or by calling (833) 737-7788. Please read carefully before investing.

Important Risk Information: Equity securities (stocks) are generally more volatile and carry more risk than fixed income securities (bonds) and money market investments. The net asset value per share of the Small Cap Value fund (the Fund) will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater returns over long time periods than fixed income securities. The Fund is comprised primarily of equity securities and is subject to market risk. Stocks may decline due to general market and economic conditions or due to company specific circumstances. The Fund is comprised of small capitalization ("small cap") stocks. Small cap stocks typically carry additional risk, since smaller companies generally have a higher risk of failure, and historically have experienced a greater degree of volatility. Small capitalization companies generally have a greater risk of failure, and their stocks generally have greater volatility than large companies. Mutual fund investing involves risk, including loss of principal.

Risks specific to KVALX: Value investing is subject to the risk that the market will not recognize a security's inherent value for a long time or at all.

Index definitions and technical terms:

The Russell 2000^® Value Index is used as the benchmark for the Kennedy Capital Small Cap Value Fund and strategy. The Russell 2000^® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 year). The Russell 2000^® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The Index is completely reconstituted annually to ensure new and growing equites are included and that the represented companies continue to reflect value characteristics. You cannot invest directly into an index.

© 2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Rating^TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- 3 year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 5/31/25, KVALX was rated against 477 Small Value funds for the 3-year period. KVALX received 4 stars for this period. The Small Value category includes funds that typically invest in small US companies with valuations and growth rates below other small-cap peers. Stocks in the bottom 10% of the capitalization of the US equity market are defined as small cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow).

²eVestment and its affiliated entities (collectively, "eVestment") collect information directly from investment management firms and other sources believed to be reliable; however, eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on eVestment's systems and other important considerations such as fees that may be applicable.

Kennedy Capital Management LLC is an investment adviser registered with the U.S. Securities and Exchange Commission and the adviser to the Funds.

The Funds are distributed by IMST Distributors, LLC.

Safe Harbor Statement

This press release is not intended as a recommendation or as investment advice of any kind, shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. All content has been provided for informational or educational purposes only.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although Kennedy Capital Management LLC believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Fund's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, Kennedy Capital Management, Inc. does not assume a duty to update this forward-looking statement. 2025060024

Contact

Sarah Burkemper
sburkemper@kennedycapital.com
(314) 743-8221

SOURCE: Kennedy Capital Management, Inc.

View the original press release on ACCESS Newswire

FAQ

What Morningstar rating did Kennedy Capital Management's KVALX fund receive?

KVALX received a 4-Star overall Morningstar Rating, measured against 477 funds in Morningstar's Small Cap Value Category as of May 31, 2025

Who manages the KVALX small cap value fund?

The fund is managed by Frank Latuda, Jr., CFA®, who has guided the strategy for over 20 years, and McAfee Burke, CFA®

How has KVALX's underlying strategy performed historically?

The strategy ranks in the top quartile for the 1, 3, 5, and 10-year periods ending March 31, 2025, according to NASDAQ eVestment database

When was the KVALX fund launched?

The fund was launched in 2022, although the underlying strategy has been in place since 1983

What is the investment approach of KVALX?

KVALX uses a fundamental, bottom-up investment approach, focusing on companies with favorable cash flow values relative to market capitalization