FORM ADV PART 2B BROCHURE SUPPLEMENT. South Texas Money Management, Ltd.

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1 FORM ADV PART 2B BROCHURE SUPPLEMENT South Texas Money Management, Ltd. 700 N. St. Mary s Street, Suite 100 San Antonio, Texas (210) (210) (Fax) March 29, 2019 This brochure supplement provides information about the following SEC-defined supervised persons and supplements South Texas Money Management s firm brochure. You should have received a copy of that brochure. Please contact our chief compliance officer at (210) if you did not receive South Texas Money Management s firm brochure or if you have any questions about the contents of this supplement. Additional information about the following supervised persons is available on the SEC s website at As explained in STMM s firm brochure, investment decisions are made for client accounts by dedicated equity, fixed-income and wealth management investment teams. This brochure supplement includes information on the individuals on each of these teams who are most responsible for making investment decisions. Information about the individual who oversees STMM s financial planning services is also included. Please note that a single client may utilize more than one investment asset class, in which case more than one team would be responsible for making investment decisions for that client s account. Please also note that STMM Relationship Managers do not make investment decisions for client accounts, unless such individuals are also part of an investment team. Jim Kee, Ph.D., President and Chief Economist; Member of Equity, Fixed-Income and Wealth Management Teams Christian Ledoux, CFA, Chief Investment Officer, Director of Equity Research & Senior Portfolio Manager; Member of Equity, Fixed Income, and Wealth Management Teams

2 Gowshihan Sriharan, CFA, Senior Equity Analyst, Member of Equity Team Joshua Taenzler, Senior Equity Analyst, Member of Equity Team Eshani Gupte, CFA, Equity Analyst, Member of Equity Team Christina Lecholop, CFP, Senior Vice President & Relationship Manager, Member of Wealth Management Team Michelle Scarver, CPA, Senior Vice President and Relationship Manager, Member of Wealth Management Team Benjamin B. Napier, CFA, Executive Vice President & Director of Manager Research; Member of Wealth Management Team Ramiro Fernandez, CFA, Vice President, Performance Analysis & Reporting Manager, Member of Wealth Management Team Christine Quichocho, CFP, Senior Vice President, Director of Portfolio Management Administration; Member of Equity and Fixed-Income Teams Sylvia Ann Mendez, Executive Vice President & Investment and Compliance Analyst, Member of Equity and Fixed-Income Teams Joshua Hudson, CFA, Director of Fixed Income, Member of Fixed-Income Team Lisa Fox, CFP, CDFA, Managing Director and Director of Financial Planning 2

3 Supervised Person: Jim Kee, Ph.D. Member of Equity, Fixed-Income and Wealth Management Teams Jim Kee, Ph.D., was born in 1962 and received a BA in economics from St. Edwards University, an MA in economics from St. Mary s University of San Antonio, and a Ph.D. in economics from Auburn University. Dr. Kee joined South Texas Money Management in January 2009, as chief economist. In 2011, Dr. Kee was named president of the firm. His primary non-supervisory responsibilities include research and analysis of companies for investment by firm clients and macroeconomic overview. Prior to joining South Texas Money Management, Dr. Kee was the HOLT global strategist for Credit Suisse in Chicago, where he served from May 2003 to December Dr. Kee has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Dr. Kee. Dr. Kee is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. Dr. Kee does not receive any additional compensation beyond his salary and potential bonus for providing advisory services. procedures, Dr. Kee s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmltd.com. Supervised Person: Christian Ledoux, CFA Member of Equity, Fixed Income, and Wealth Management Teams 3

4 Christian Ledoux, CFA, was born in 1972 and received a BA in Business Economics from the University of California at Santa Barbara. Mr. Ledoux serves as Chief Investment Officer. Mr. Ledoux joined South Texas Money Management in 2013 as the director of equity research and was subsequently named senior portfolio manager and Executive Vice President. Mr. Ledoux is an equity portfolio manager and his primary responsibilities include portfolio management, research, analysis of equity securities for investment by firm clients, and supervision of the analyst team. Mr. Ledoux also serves on the Wealth Management and Fixed Income committees. Prior to joining South Texas Money Management, Mr. Ledoux was a Principal at Hoover Investment Management in San Francisco from June 2003 through February 2010 where he was a Senior Analyst. From March 2010 through November 2012 he was a consultant for Spinner Asset Management in New York Mr. Ledoux received his CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a six-hour exam Mr. Ledoux has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Ledoux. Mr. Ledoux is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. Mr. Ledoux does not receive any additional compensation beyond his salary and regular annual bonus for providing advisory services. As a limited partner of South Texas Money Management, Mr. Ledoux may receive distributions from South Texas Money Management with respect to his ownership interest. 4

5 procedures, Mr. Ledoux s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Gowshihan Sriharan, CFA Member of Equity Team Item 2- Educational Background and Business Experience Mr. Sriharan, CFA, was born in 1976 and earned his Masters in Business Administration from Massachusetts Institute of Technology. On completion of his thesis on Optimal Portfolio Management with transaction cost, he was awarded the Master of Philosophy from Imperial College London. Mr. Sriharan also attended Imperial College London for his Master of Science in Math and Computer Science, where he graduated with First Class Honours. Mr. Sriharan joined South Texas Money Management in 2018 and serves as a Senior Equity Analyst. In this role, his primary responsibilities include research and analysis of equity securities. Prior to joining STMM, he was a Senior Research Analyst at Gravity Capital Management and lead analyst at both Sidoti & Co and C.L.King & Associates. Mr. Sriharan received his CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a six-hour exam Mr. Sriharan has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Sriharan. 5

6 Mr. Sriharan is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. Mr. Sriharan does not receive any additional compensation beyond his salary. STMM periodically implements additional bonus opportunities on a one time basis. procedures, Mr. Sriharan s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Josh Taenzler Member of Equity Team Item 2- Educational Background and Business Experience Mr. Taenzler was born in 1990 and attended the University of Texas at San Antonio and earned a Bachelor of Business Administration, double majoring in Finance and Management with a concentration in International Business, graduating Magna Cum Laude with General and Business Honors. Mr. Taenzler joined STMM in 2012 as a junior analyst and was promoted to Senior Equity Analyst in Mr. Taenzler s primary responsibilities include research and analysis of equity securities. Prior to STMM, Mr. Taenzler worked in finance and accounting for Social Commerce, a local technology startup. Mr. Taenzler has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Taenzler. Mr. Taenzler is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. 6

7 Mr. Taenzler does not receive any additional compensation beyond his salary. STMM periodically implements additional bonus opportunities on a one time basis. procedures, Mr. Taenzler s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Eshani Gupte, CFA Member of Equity Team Item 2- Educational Background and Business Experience Ms. Gupte, CFA, was born in 1983 and attended New York University and Kean University, where she earned a Bachelor s degree in Finance. Ms. Gupte joined STMM in 2016 and serves as an equity analyst. Ms. Gupte s primary responsibilities include research and analysis of equity securities. Prior to joining STMM, Ms. Gupte worked at Bloomberg LP as an equity associate, M&A specialist, and an equity fundamentals analyst. Prior to joining Bloomberg in 2009, Ms. Gupte worked at The Benchmark Company and Marsh & McLennan. Ms. Gupte received her CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a six-hour exam Ms. Gupte has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Gupte. 7

8 Ms. Gupte is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Gupte does not receive any additional compensation beyond her salary. STMM periodically implements additional bonus opportunities on a one time basis. procedures, Ms. Gupte s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Christina Lecholop, CFP Member of Wealth Management Team Ms. Lecholop, was born in 1983 and received her Bachelor of Science in Corporate Communication from The University of Texas at Austin in Ms. Lecholop joined South Texas Money Management in 2009 and currently serves as Senior Vice President & Relationship Manager for the Wealth Management Program. Prior to joining STMM, Ms. Lecholop began her career at Merrill Lynch, Pierce, Fenner & Smith in Houston, Texas, where she served in financial planning, client service, and marketing roles from 2004 until Ms. Lecholop also earned the CERTIFIED FINANCIAL PLANNER certification in To obtain the CFP certification, a candidate must: complete a college-level program of study in personal financial planning; obtain at least 4,000 hours of qualifying experience; pledge to adhere to the CFP Board s Standards of Professional Conduct; and pass the comprehensive CFP Certification Exam, which tests knowledge of investment management, the financial planning process, tax planning, employee benefits and retirement planning, estate planning, and insurance. 8

9 Ms. Lecholop has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Lecholop. Ms. Lecholop is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Lecholop does not receive any additional compensation beyond her salary and regular annual bonus for providing advisory services. As a limited partner of South Texas Money Management, Ms. Lecholop may receive distributions from South Texas Money Management with respect to her ownership interest. procedures, Ms. Lecholop s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmltd.com. Supervised Person: Michelle Scarver, CPA Member of Wealth Management Team Ms. Scarver, CPA, was born in 1962 and graduated from Texas A&M University with a Bachelor of Business in Accounting. Ms. Scarver joined South Texas Money Management, Ltd. in 2019 and is a member of the specialized Wealth Management investment program offering comprehensive investment advice and a premium level of client service. Ms. Scarver brings to the team over 30 years of experience in the financial services industry as a CPA, a big-4 auditor, controller, portfolio manager and wealth advisor. Ms. Scarver also earned the CERTIFIED PUBLIC ACCOUNTANT certification. To obtain the CPA certification, a candidate must: 9

10 meet educational requirements including having a Bachelor s degree or the equivalent meet certain character requirements have a minimum of one year of experience working under a licensed CPA and pass the CPA exam. Ms. Scarver has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Scarver. Ms. Scarver is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Scarver does not receive any additional compensation beyond her salary and regular annual bonus for providing advisory services. procedures, Ms. Scarver s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmltd.com. Supervised Person: Benjamin B. Napier, CFA Member of Wealth Management Team Benjamin Napier, CFA, was born in 1969, and received a BBA in Finance from Southern Methodist University in 1991 and an MBA in Finance from Texas A&M University in Mr. Napier joined South Texas Money Management in Mr. Napier is the Director of Manager Research and is responsible for evaluating outside investment management organizations via qualitative interviews and statistical analysis. Prior to joining South Texas Money Management, Mr. Napier operated his own registered investment advisory firm, Cutlass Investment Consulting, LLC, where he acted as the firm s Chief 10

11 Executive Manager and lead Portfolio Manager. Prior to founding Cutlass Investment in June of 2010, Ben was the Chief Investment Officer for Robert Harrell, Incorporated for the period from 1997 through June of Mr. Napier received his CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a six-hour exam Mr. Napier has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Napier. Mr. Napier is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. Mr. Napier receives a salary and is eligible to receive incentive compensation as a result of additional clients he services at South Texas Money Management. procedures, Mr. Napier s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmltd.com. Supervised Person: Ramiro Fernandez, CFA Member of Wealth Management Team 11

12 Mr. Fernandez, CFA, was born in 1988 and graduated from the University of Texas at Austin with a degree in Economics. Mr. Fernandez joined STMM in 2011 and serves as the Vice President, Performance Analysis and Reporting Manager. In this role, Mr. Fernandez provides in-depth performance commentary and analysis for all portfolios including all clients on the Wealth Management Program. Prior to this role, Mr. Fernandez served as an equity analyst for South Texas Money Management. Mr. Fernandez received his CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a six-hour exam Mr. Fernandez has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Fernandez. Mr. Fernandez is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time. Mr. Fernandez does not receive any additional compensation beyond his salary. STMM periodically implements additional bonus opportunities on a one time basis. CIO. In addition, pursuant to the firm s code of ethics and policies and procedures, Mr. Fernandez s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. 12

13 Supervised Person: Christine Quichocho, CFP Member of Equity and Fixed-Income Teams Ms. Quichocho was born in 1981 and she received her Bachelor of Business Administration degree from St. Mary's University in May 2003 with a double major in Corporate Finance and Financial Services/Risk Management. Ms. Quichocho joined South Texas Money Management in 2003 as Portfolio Management Assistant. She was promoted to Senior Portfolio Management Administrator in 2012, and to Senior Vice President Her primary responsibility is leading the Portfolio Management Administration Team that is responsible for reviewing accounts to ensure they are properly invested according to their investment objective and to STMM's guidelines. Ms. Quichocho also earned the CERTIFIED FINANCIAL PLANNER certification in To obtain the CFP certification, a candidate must: complete a college-level program of study in personal financial planning; obtain at least 4,000 hours of qualifying experience; pledge to adhere to the CFP Board s Standards of Professional Conduct and pass the comprehensive CFP Certification Exam, which tests knowledge of investment management, the financial planning process, tax planning, employee benefits and retirement planning, estate planning, and insurance. Ms. Quichocho has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Quichocho. Ms. Quichocho is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Quichocho does not receive any additional compensation beyond her salary. STMM periodically implements additional bonus opportunities on a one time basis. CIO. 13

14 In addition, pursuant to the firm s code of ethics and policies and procedures, Ms. Quichocho s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Sylvia Ann Mendez Member of the Equity Team, Fixed Income Team Ms. Mendez was born in 1968, and received a Bachelor's degree in Business Administration with a concentration in Banking and Finance from the University of the Incarnate Word in Ms. Mendez joined South Texas Money Management as an Equity Trader in February 2003, and was subsequently promoted to Chief Trader. In 2016, she was promoted to Senior Vice President and she currently serves as Chief Trader and is responsible for equity trading for the firm's managed accounts. Prior to joining STMM, Ms. Mendez worked for three years as an Investment Support Analyst for Equity Investments at USAA, where she was responsible for financial databases and spreadsheets for the ongoing management of equity mutual funds. For five years before that, she was a Money Desk Specialist in Fixed-Income Investments, where she compiled and analyzed market information for daily cash investments for USAA's mutual funds and insurance portfolios. Ms. Mendez has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Quichocho. Ms. Mendez is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Mendez does not receive any additional compensation beyond her salary. STMM periodically implements additional bonus opportunities on a one time basis. CIO. In addition, pursuant to the firm s code of ethics and policies and procedures, Ms. Mendez s personal trading records and correspondence are reviewed periodically by 14

15 the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Joshua Hudson, CFA, Member of the Fixed-Income Team Mr. Hudson was born in 1983, and earned a B.S. in Accounting from McNeese State University and an MBA in Accounting from American Public University. Mr. Hudson joined STMM in 2017 as the Director of Fixed Income where he is responsible for the fixed income investments and portfolio management. Prior to joining STMM, Mr. Hudson worked as a fixed income investment analyst at Amerisafe insurance company from 2012 through Mr. Hudson received his CFA designation in The CFA areas of study include accounting, economics, ethics, equity analysis, fixed income analysis, portfolio management, and statistics. To obtain the CFA designation, a candidate must: have four years of qualified investment work experience; pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct annually; and complete the three levels of the CFA program, each culminating in a sixhour exam Mr. Hudson has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Mr. Hudson. Mr. Hudson is not actively engaged in any other investment-related business or occupation, nor is he actively engaged in any other business that provides a substantial source of his income or consumes a substantial portion of his time Mr. Hudson does not receive any additional compensation beyond his salary and discretionary bonuses for providing advisory services. CIO. In addition, pursuant to the firm s code of ethics and policies and procedures, Mr. 15

16 Hudson s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. Supervised Person: Lisa Fox, CFP, CDFA Lisa Fox, CFP, CDFA, was born in 1965 and received a Master of Science in Banking and Financial Services Management from Boston University and an undergraduate degree from Western Governors University. Ms. Fox joined South Texas Money Management in April 2006 as a Senior Investment Advisor. Her responsibilities include managing the Austin office and overseeing and developing the firm's financial planning services offered to individual clients. Prior to joining South Texas Money Management, Ms. Fox was Vice President and Co-Owner of Third Coast Wealth Advisors. Before joining Third Coast Wealth Advisors, Ms. Fox spent five years working for Frost Bank as a Trust Officer. Ms. Fox earned her CERTIFIED FINANCIAL PLANNER certification in To obtain the CFP certification, a candidate must: complete a college-level program of study in personal financial planning; obtain at least 4,000 hours of qualifying experience; pledge to adhere to the CFP Board s Standards of Professional Conduct; and pass the comprehensive CFP Certification Exam, which tests knowledge of investment management, the financial planning process, tax planning, employee benefits and retirement planning, estate planning, and insurance. Ms. Fox earned her Certified Divorce Financial Analyst designation in The CDFA areas of study include divorce procedures and laws, spousal and child support, fundamentals of financial analysis in divorce, categorization of property, valuation and transfer of retirement plans, and tax issues related to property division. To obtain the CDFA certification, a candidate must: have a minimum of three years professional experience in finance or divorce services; and obtain a passing score on each of the 4 CDFA modules. Modules 1, 2, and 3 each conclude with a 100-question, multiple-choice exam. Module 4 concludes with a comprehensive case-study exam consisting of 50 multiple-choice questions. 16

17 Ms. Fox has not been the subject of any legal or disciplinary events that are material to a client s, or prospective client s, evaluation of Ms. Fox. Ms. Fox is not actively engaged in any other investment-related business or occupation, nor is she actively engaged in any other business that provides a substantial source of her income or consumes a substantial portion of her time. Ms. Fox does not receive any additional compensation beyond her salary and regular annual bonus for providing advisory services. As a limited partner of South Texas Money Management, Ms. Fox may receive distributions from South Texas Money Management with respect to her ownership interest. procedures, Ms. Fox s personal trading records and correspondence are reviewed periodically by the firm s chief compliance officer. A client who wishes to communicate concerns or questions about their account may contact Christian Ledoux at or at cledoux@stmmtld.com. 17