FMI

Fiduciary Management, Inc. endures as a prudently run, employee-owned boutique and retains an Above Average Parent rating through recent changes and despite reduced conviction in its strategies.

The Milwaukee, Wisconsin-based firm completed a well-planned leadership transition at the end of 2025, as former CIO Patrick English stepped away from day-to-day duties after 40 years at the firm. Successor Jonathan Bloom progressively assumed increasing responsibilities since joining FMI in 2010 and was named sole CIO in January 2024. In addition, firm founder Ted Kellner continues to transfer share ownership to current employees, helping align business interests.

FMI’s conservative mindset means that it carries no debt and doesn’t attempt to stray from what it believes is its circle of competence. The firm practices a single, concentrated value-oriented investment philosophy across three core strategies and a compact set of mutual funds. The funds generally carry average expense ratios compared with peers, though FMI Common Stock’s fees are below average. That small-cap strategy has been an area of strength for the firm, delivering solid results over the last decade relative to both its new small-blend Morningstar Category and former mid-blend category. Meanwhile, its large-cap and international counterparts have struggled. Such uneven success has diminished confidence in the investment process, and the firm has also experienced prolonged outflows as a result: The firm managed USD 9.1 billion as of June 2026, down substantially from the USD 26.0 billion it oversaw at year-end 2017.

Since January 2026, Bloom has made several changes in an attempt to strengthen the investment team. He reduced the size of the portfolio management committee, which previously included all analysts regardless of experience or tenure, to promote greater alignment among senior leaders. By mid-2026, two analysts departed and were replaced by new additions. It’s too early to tell if these changes will yield constructive results, but they signal a thoughtful approach from new leadership.