Overview
Firm Description
Legato Capital Management, LLC (“Legato”), a California limited liability company, was formed in February
2004 and is registered as an investment adviser with the United States Securities and Exchange Commission
(“SEC”) under the Investment Advisers Act of 1940 (the “Advisers Act”). Legato is a privately held firm that
is 100% employee owned, and majority minority owned. The principal owner is Victor L. Hymes, the
Founder, President & Chief Executive Officer of Legato.
Types of Advisory Services
Legato serves as a manager-of-managers for institutional clients and specializes in building customized
multi-manager long-only equity portfolios across domestic and international asset classes, styles and
capitalization sizes. In constructing multi-manager portfolios, Legato integrates manager selection, asset
allocation and risk management processes. Legato provides its manager-of-managers advisory services to
institutional clients through separate account or private investment fund structures.
As a manager-of-managers, Legato is responsible for selecting other investment advisers (“sub-advisers”),
who, in-turn, purchase and sell securities for
the clients’ accounts. The services that Legato typically
provides as a manager-of-managers include: (i) identifying and selecting sub-advisers for client portfolios;
(ii) allocating client assets among selected sub-advisers; (iii) monitoring the performance and operations of
the selected sub-advisers by conducting ongoing due diligence on the sub-advisers; and (iv) client reporting.
Legato constructs client portfolios utilizing multiple sub-advisers that are intended to complement one
another. Legato generally utilizes sub-advisers that are characterized as “entrepreneurial managers.” These
sub-advisers are typically smaller firms, with assets under management of $2 billion or less.
Legato tailors its advisory services to the individual needs of each institutional client, including the client’s
investment objectives, guidelines and risk parameters. Clients have the ability to impose restrictions on the
management of their accounts, such as restrictions on investing in particular securities or types of securities.
Assets Under Management
All of Legato’s client assets are managed on a discretionary basis. As of December 31, 2023, Legato’s assets
under management totaled $1,009,560,089.