Interview with Mason D. King, CFA: Breaking Down LKCM’s Small-Cap Stock Strategy on CNBC

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CNBC No. 1 financial advisor: How to navigate an ‘unusual’ market

Disclosure: The annual CNBC FA 100 ranking was published on September 12, 2023 on www.cnbc.com. The methodology which CNBC employed to determine the FA 100 ranking for 2023 can be found here. CNBC receives no compensation from placing financial advisory firms on the list. Additionally, an advisor’s appearance on the ranking does not constitute an individual endorsement by CNBC of any firm.  CNBC updates its list of financial advisors each year, and that ranking only speaks for the 2023 listing.

 

Watch Our Second Quarter 2024 Economic Commentary with Michael C. Yeager, CFA, CPA, Vice President/Portfolio Manager

Luther King Capital Management Third Quarter 2024 Review

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Investors entered the third quarter anticipating signs that inflation would sufficiently cool to allow the Federal Reserve Bank to begin cutting interest rates. Economic data soon supported this outlook, with softer employment figures and easing inflation pressures.  The surprise jump in the unemployment rate reported in early August persuaded investors that the central bank risked labor market instability unless it began easing policy.  On cue, the Federal Reserve delivered a half percent cut at its September meeting.  The futures market expects the central bank to provide additional interest rate cuts in November and December.  This environment has fueled optimism that the Federal Reserve pivot exemplifies exquisite timing; with inflation slowing, the economy and equity market now have interest rate cuts as a valuable tailwind.

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Read our Third Quarter 2024 LKCM International Economic Commentary

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Executive Summary:

International equity markets rose during the third quarter, as optimism and lower capital costs favored reflation of equity assets after multiple central banks commenced their accommodative cycle for policy rates. 

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Read the Wall Street Journal Transcript: Small Cap Space Offers a Discount Relative to the S&P 500

TWST: Could you tell me about the firm?

Mr. King: Luther King Capital Management is a registered investment advisory firm, based in Fort Worth, Texas, with offices in Fort Worth, Dallas, San Antonio and Austin, principally serving the taxable space that represents about 70% to 75% of our assets under management. And we are an active manager in both the public equity space, as well as fixed income, and an expanding private equity effort as well.

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