Milwaukee-based registered investment adviser firm Significance Capital Management LLC on Monday announced its launch.
The firm is led by founder and chief investment officer Ryan Isherwood and co-portfolio manager Michael Klenn, who previously worked together for more than a decade at Milwaukee-based Timpani Capital Management and later Illinois-based Calamos Investments, which acquired Timpani in 2019.
“Markets move through cycles driven by momentum and mean reversion. Identifying the turning points between those regimes is where we believe a significant opportunity exists,” said Isherwood. “Our approach is built around using every tool available, fundamental, quantitative, and technical, to understand how risk is evolving in markets. One insight that drives our process is our belief that before people start selling stocks aggressively, they stop buying them aggressively. Our models are designed to detect those shifts in investor behavior.”
“We believe alpha is often generated at the extremes, when stocks exhibit strong growth and momentum characteristics or when assets become deeply out of favor,” said Klenn. “Our process focuses on identifying those opportunities while managing risk through a combination of fundamental analysis, quantitative models, and technical signals. By understanding where leadership is developing or breaking down across markets, we can position portfolios to take advantage of those shifts.”
Significance Capital plans to donate 5% of its net revenues to children’s charities focused on literacy and financial education, including organizations that provide books and financial literacy programs to underserved communities.
Significance Capital is also developing an internship program designed to introduce students to financial markets, entrepreneurship, and philanthropic initiatives.
“Success in investing is important, but we also believe in building something that has a meaningful impact beyond financial markets,” Isherwood said. “We want Significance Capital to represent both strong investment performance and a commitment to helping the next generation succeed.”