Kabouter Management, LLC (Chicago)


Kabouter Management, LLC is a large advisory firm based in Chicago. It manages $4.03 billion of regulatory assets for 23 client accounts. It has been registered with the SEC as an adviser since 2010 and has operated in the jurisdictions of California and Illinois.

Kabouter Management provides portfolio management for individuals and small businesses, portfolio management for pooled investment vehicles, and portfolio management for businesses and institutional clients. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Kabouter Management: assets under management

The assets under management (AUM) of Kabouter Management, LLC is $4.03 billion, all of which is managed in discretionary accounts. The firm's AUM has grown by 2192% since the beginning of its operation, and the company doesn't manage any assets belonging to foreign clients.

The firm manages $4.03 billion in discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $175.39 million each.
Kabouter Management has custody of $3.29 billion in cash and securities for 8 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in exchange traded securities the most. They account for 98% of the total AUM. The second-largest asset type is cash and cash equivalents, which make up 2% of the firm’s portfolio.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Kabouter Management, LLC for their services and products based on a percentage of assets under management and performance-based fees. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Kabouter Management serves?

The only and largest group of clients of Kabouter Management is pooled investment vehicles with 16 clients and $3.57 billion of assets under management. Among the 11 most similar advisory firms, Kabouter Management has the 3rd highest percentage of pooled investment vehicles out of all clients.

The amount of regulatory assets under management is $3.57 billion for 16 clients. 17% of the firm’s clients are foreign persons or businesses.

Kabouter Management also advises several private funds. Namely, three hedge funds and four other private funds. The minimum investment commitment required of non-related persons is $500,000 for each fund.

Careers at Kabouter Management, LLC

The company employs 31 people that are either part- or full-time employees. 48 percent of the employees work as investment advisers or researchers. No employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Direct owners and executive officers


Name Entity Date acquired Ownership Employer ID
Peter Zaldivar Managing member 1 Sep 2003 50% - 75% 5811647
Marcel Paco Houtzager Managing member 1 Sep 2003 25% - 50% 2103094
Linda Choi Chief compliance officer/chief operating officer 1 Sep 2009 Other 5811652
David Hein Chief compliance officer 1 Apr 2015 Other 3223202
Christopher Keene Yarbrough Chief compliance officer and general counsel 1 Mar 2016 Other 5021190
Sandeep Shah Chief financial officer 1 Jun 2016 Other 6772804
Inc. Kabouter Holdings Owner 1 Sep 2018 75% - 100% 83-1729441

Indirect Owners

The SEC currently registers 2 indirect owners.

Name Entity Date acquired Ownership Employer ID
Peter Zaldivar Co-chief executive officer 1 Sep 2018 50% - 75% 5811647
Marcel Paco Houtzager Co-chief executive officer 1 Sep 2018 25% - 50% 2103094

Based in Chicago

The principal office where Kabouter Management, LLC performs its advisory services is located at 401 North Michigan Avenue, Chicago, IL 60611, which is also the mailing address of the firm. An additional office of the firm is in Tiburon, CA. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 312-546-4260 or by fax 312-580-0003. The normal business hours are 9:00 a.m. - 5:00 p.m. on Monday - Friday. You can find more information about the New York firm at kaboutermgmt.com.