Kalo Capital Management

What Kalo Capital Management does

Kalo Capital Management, LLC is a privately-held Registered Investment Adviser founded in 2011 by Steven D. Friedman, CFA, and headquartered in San Diego, California. The firm manages actively managed, long-only equity portfolios concentrated exclusively on U.S. micro- and small-capitalization stocks that it characterizes as overlooked or underfollowed by institutional capital. Portfolios are delivered exclusively through Separately Managed Accounts (SMAs) held in the client's own name at a third-party custodian, providing full transparency, tax-account flexibility, and the ability to exit at any time. There is no disclosed proprietary technology platform, quantitative model, or systematic engine — idea generation and execution are discretionary, conducted in-house by the founder under a stated "Identify, Analyze, Act" framework, with the founder's personal capital co-invested alongside clients.

The business model is a fee-only asset management model with two published pricing tiers: a flat 2.7% annual management fee on assets under management, or — for SEC-defined Qualified Clients — a 1.5% management fee combined with a 15% performance fee on returns exceeding the Russell 2000 benchmark. The go-to-market is sales-led and relationship-driven, relying on direct outreach, the firm's website (kalocap.com), and inbound contact forms rather than paid distribution. Target segments are high-net-worth individuals and families seeking differentiated micro/small-cap exposure, plus family offices and wealth management intermediaries seeking non-correlated, contrarian equity allocations.

Kalo Capital is a single-strategy, founder-owned boutique with no disclosed institutional backing, funding rounds, employees beyond the founder, AUM figures, revenue, or headcount. Operations appear limited to one primary office in San Diego with East Coast phone numbers (area code 732) that may indicate remote client coverage rather than a second physical office. No awards, patents, partnerships, M&A activity, or product launches beyond the original strategy have been disclosed in the source material.

Name

Kalo Capital Management

Legal name

Kalo Capital Management, LLC

Website

https://kalocap.com

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

1–10 employees

Short description

Kalo Capital Management, LLC is a private Registered Investment Adviser that delivers an actively managed, long-only equity strategy focused on U.S. micro- and small-cap stocks via Separately Managed Accounts to high-net-worth individuals, families, and family offices.

Ownership category

akta.pro rank

Product category

Investment Management / Asset Management

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394)

SIC

Investment Advice (6282)

akta.pro primary industry

Small-Cap Equity (Active) (FSAAAIAC)

akta.pro secondary industry

Institutional Separate Accounts & SMAs (Mandates) (FSAAAGAL)

Keywords

• Investment management services
• Small-cap equity investing
• Separately managed accounts
• Registered investment adviser
• Long-only active portfolio

Headquarters

HQ city

Red Bank

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Investment Management Fees: Kalo Capital generates revenue through management fees charged on assets under management. Two fee structures are offered: a standard 2.7% management fee, or an alternative structure for Qualified Clients consisting of 1.5% management fee plus 15% performance fee on returns exceeding the Russell 2000 benchmark.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Kalo Capital Management provides an actively managed long-only stock portfolio focused on micro- and small-cap U.S. companies, delivered through Separately Managed Accounts (SMAs) held in each client's own name. The firm targets overlooked, contrarian opportunities with 2-5 year catalysts via a proprietary Identify, Analyze, Act process, with the founder investing alongside clients. Revenue is earned through a 2.7% annual management fee, or a 1.5% management fee plus 15% performance fee on returns above the Russell 2000 benchmark for Qualified Clients.

Product overview

Kalo Capital Management offers a single, unified investment management service centered on an actively managed long-only stock portfolio focused on micro- and small-cap equities. The core offering is delivered through Separately Managed Accounts (SMAs), where client portfolios follow the same investment strategy as the founder's personal portfolio, ensuring alignment of interests. The firm operates on a 2.7% management fee or an alternative 1.5% management fee plus 15% performance fee structure for Qualified Clients.

Differentiator

Problem solved

Functional benefit

Products and services

• Actively Managed Long-Only Stock Portfolio An opportunistic, long-only equity portfolio targeting micro- and small-cap U.S. companies with 2-5 year catalysts, applying a disciplined Identify, Analyze, Act process to identify under-the-radar, contrarian opportunities. Offered to individual investors and families, with the founder investing alongside clients.
• Separately Managed Account (SMA) An individually managed investment account held in the client's own name at an independent custodian, providing full transparency and control. Supports taxable or IRA funding, with the ability to exit at any time. Priced at a 2.7% management fee, or 1.5% management fee plus 15% performance fee on returns above the Russell 2000 benchmark for Qualified Clients.

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Recent moves3 records

Expansion highlights1 record

Direct peers

• Walthausen & Co. Boutique active equity manager specializing in small- and mid-cap U.S. value equities. Comparable to Kalo in boutique scale, small-cap active long-only focus, and SMA-oriented distribution.
• Villere & Co. Boutique, founder-driven active manager specializing in micro- and small-cap U.S. equities with a multi-generational family-office heritage. Closely comparable to Kalo on boutique scale, micro/small-cap niche, and family-office/individual client base.
• Tributary Capital Management: Private, founder-led boutique specializing in micro- and small-cap U.S. equities for institutional and HNW clients via SMAs. Very close analog to Kalo on boutique scale, micro/small-cap niche, and SMA-only distribution.
• Ranger Investment Management: Employee-owned boutique manager focused on U.S. small/mid-cap equities delivered through SMAs and a limited-partnership fund. Directly comparable to Kalo on boutique scale, SMA-first distribution, and small/mid-cap active long-only strategy.
• Ariel Investments: Employee-owned, founder-influenced boutique manager focused on U.S. small/mid-cap equities with a deep-value, fundamental approach. Comparable to Kalo in boutique scale, active long-only small-cap strategy, and high-conviction founder-driven culture.
• Royce Investment Partners: Long-standing specialist in small-cap and micro-cap U.S. equity active management with a value-tilted philosophy. Directly comparable to Kalo on asset class focus (micro/small-cap), active long-only approach, and SMA/mutual-fund delivery.

Broad incumbents

• Westwood Holdings Group: Public asset manager with a U.S. small/mid-cap equity franchise and broader multi-asset offerings. Comparable to Kalo on small-cap active equity orientation but as a larger, multi-strategy platform rather than a single-strategy boutique.
• Heartland Advisors: Mid-size active equity manager historically focused on U.S. small-cap and mid-cap value equities. Comparable to Kalo on small-cap value-tinged active philosophy, though broader and more institutional in scale than Kalo.
• Alger: Larger established asset manager with a long-standing focus on small-cap and mid-cap growth equities, distributed via mutual funds and SMAs. Comparable to Kalo on small-cap active long-only orientation but as a much larger, multi-strategy incumbent.
• Polen Capital: Boutique-but-larger active equity manager offering concentrated quality-growth strategies across market caps, including small/mid-cap exposure. Comparable to Kalo on boutique-style active management and SMA delivery, though broader and more institutional.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat2 records

Key risks6 records

Key highlights5 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kalo Capital Management