Paradigm Capital Management, Inc.

Paradigm Capital Management provides discretionary investment management to a mix of institutional and individual clients including pension and profit sharing plans, foundations, trusts, corporations, other investment advisers, and pooled investment vehicles. The firm reports managing roughly $2.38 billion for about 59 client relationships and also serves as investment manager to private funds and other pooled vehicles.

Investment decisions are driven by a research-oriented, bottom-up equity process with six primary strategies (Micro‑Cap, Small‑Cap, SMid‑Cap, Value, High Net Worth, and Defensive); portfolio managers are empowered to make independent buy and sell decisions while firm oversight monitors portfolio characteristics and risk. Clients typically select among those model strategies and may request reasonable account-level modifications, while pooled vehicles are managed according to each fund’s governing documents and are not tailored to individual investors.

Distinctive features disclosed in the firm’s brochure include its role as adviser, sponsor and syndicator to affiliated private funds and pooled vehicles, the use of performance-based allocations for those funds, and relationships with an affiliated broker‑dealer that shares interest revenues and may be recommended for client trading. The brochure also discloses a FINRA enforcement matter involving the broker‑dealer affiliate (resulting in a monetary sanction) and describes related conflict‑of‑interest areas (principal/agency‑cross transactions, soft‑dollar arrangements, and custody of private fund assets), and the firm operates with a relatively small advisory team managing multi‑billion dollars in assets.