Overview of the Firm:
Sparrow Capital Management, Inc. (“SPARROW”) is an independent, privately-owned
investment advisor registered with SEC. SPARROW was established in 1988 by its President,
Chief Investment Officer and Chief Compliance Officer, Gerald R. Sparrow, principal owner of
SPARROW. SPARROW’s office is located in Saint Louis, Missouri.
Investment Services:
SPARROW provides investment advisory services for individuals, banks, corporations, employee
benefit programs, estates, professional organizations and trusts, as well as Sparrow Fund L.P.
("SPLP" or the “Private Partnership”) and Sparrow Growth Fund (“Sparrow Fund” and together
with SPLP, the “Funds”). We refer to persons or entities to which we provide investment advice
as a “Client” or “Clients.”
SPARROW reviews the investment portfolio of the Client, if any is submitted. Based upon the
review and discussions with the Client, the Client’s financial needs and investment objectives are
incorporated into the management agreement, and investments that are consistent with such
financial needs and investment objectives are made. SPARROW tailors its advisory services to
the individual needs of Clients. SPARROW will accept reasonable restrictions on investing in
certain securities or types of securities. SPARROW, under the direct supervision of Mr. Gerald
R. Sparrow, deals in advisory services in the range of $100,000 or more of assets for managed
accounts; however, smaller accounts are accepted.
Investment Services:
SPARROW offers investment advice to certain clients through our participation in “wrap fee”
programs. These programs are offered by brokerage firms to provide their clients with
access to
non- affiliated investment advisers. There are potentially meaningful differences in the
management of accounts participating in wrap fee programs, relative to other accounts managed
by SPARROW. SPARROW will receive some portion of the wrap fees associated with
participation in wrap fee programs.
Investment Services:
SPARROW has executed a Portfolio Manager Licensing Agreement with Covestor Limited.
Covestor Limited (doing business as Interactive Advisors) is an SEC-registered investment
adviser affiliated with Interactive Brokers LLC, the broker and custodian for some of our client
accounts. Pursuant to that agreement, a SPARROW portfolio manager provides Covestor with
information regarding the trading in an IB brokerage account owned by the portfolio manager. The
SPARROW portfolio manager trades that account in accordance with a specific investment
strategy. Based on this trading data, Covestor creates a portfolio discussed on its website, which
Covestor clients may invest in, if Covestor deems it appropriate based on the client’s suitability
profile. Covestor mirrors (subject to certain limits) the trading activity in the SPARROW portfolio
manager’s brokerage account into the accounts of investing clients using Covestor’s proprietary
replication logic. Neither SPARROW nor its portfolio manager offer any investment advice to
Covestor clients, have discretionary trading authority over Covestor clients’ accounts, or know the
identity or suitability profile of those clients.
Assets under Management:
As of December 31, 2022 SPARROW had assets of $178,973,509 in discretionary assets under
management.