Gavekal Capital, LLC is now Knowledge Leaders Capital

March 17, 2017
By Steven Vannelli, CFA in Knowledge Leaders

I’m delighted to share some firm news: as of today, we are Knowledge Leaders Capital.

Independently owning and operating an investment advisory has been my dream since interning at my father’s firm in the early 1990s. I founded this advisory firm in 2006, in Denver, with early backing from Gavekal Research, a leading research boutique based in Hong Kong. Last year, I purchased a majority interest in our firm, taking the final step on the path to independence.

Knowledge Leaders Capital is an extension of the strategy with which our followers have come to identify us. Every industry has two groups of companies, those that lead and those that follow. Knowledge Leaders innovate and introduce new products; followers mimic and react. Research shows the stock market tends to reward innovation. We invest in companies that lead innovation in their industries, and we apply the same standard to our own work. We believe in embracing change.

As Knowledge Leaders Capital, we continue our focus on serving the US advisor community with our Knowledge Leaders research and investment products. Our Knowledge Leaders investment strategy and methodology remain the same. Based on the Knowledge Effect, a market anomaly first identified in the research of New York University’s Baruch Lev, I created the Knowledge Leaders investment strategy and method for capitalizing intangibles to identify Knowledge Leaders. This strategy is grounded in work that capitalizes investments in intangible assets to identify Knowledge Leaders and analyzes those Knowledge Leaders to isolate those that deploy intellectual property in the most efficient manner. I first began work on the methodology in 2006, and today, with the advanced quantitative tools we have developed to manage the Knowledge Leaders Strategy, which many of you have seen in visits to our office in Denver, we continue to advance this investment strategy to find new investment opportunities for our actively managed portfolios.

The Knowledge Leaders Indexes also remain the same. Our indexes are the backbone of our intellectual property and an exciting area of development for the firm. Already this year, we have created a new Knowledge Leaders All Country Resources Index to capture the large-scale productivity increases over the last year in the global resources sector. Last year we introduced six new indexes to capture the Knowledge Effect in new geographies and versions of existing indexes that employ international exposure via American Depository Receipts. We are working toward completing US and International Knowledge Leaders Small-Cap indexes as well as US and International Knowledge Leaders Financials indexes and US and International Knowledge Leaders Utilities indexes.

We remain focused on delivering superior risk-adjusted returns and are energized about the future as we continue to advance our capabilities, products and processes. Questions? Feel free to email us at

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