About Check Capital Management
Who is Check Capital Management?
Check Capital Management (CCM) is an SEC-registered investment advisory and asset management firm based in Costa Mesa, California, founded by Steven Check in 1987. The firm manages approximately $2.4 billion in assets (as of September 30, 2026) for more than 1,200 clients in 46 states, and is best known for a value-investing approach and a unique profit-based management fee more widely recognized in the industry as a performance-based fee.
When was Check Capital Management founded, and by whom?
Check Capital Management was founded in 1987 by Steven Check, who remains the firm's President and Chief Investment Officer. Mr. Check holds a BS in Electrical Engineering from Iowa State and a Master's in Engineering from UC Irvine, and built the firm's investment approach around the principles of value investors like Benjamin Graham, Warren Buffett, and Charlie Munger.
Is Check Capital Management a registered investment advisor?
Yes. Check Capital Management has been an SEC-registered investment advisor since 1987. As an SEC-registered adviser, it's held to a fiduciary standard under the Investment Advisers Act of 1940, meaning it's legally required to act in clients' best interests.
How much money does Check Capital manage?
As of September 30, 2026, Check Capital Management manages approximately $2.4 billion in client assets.
How many clients does Check Capital serve, and where are they located?
Check Capital Management serves more than 1,200 clients across 46 U.S. states (as of September 30, 2026), from its headquarters in Costa Mesa, California.
Where is Check Capital Management located?
Check Capital Management's headquarters is at 575 Anton Boulevard, Suite 500, Costa Mesa, CA 92626. The firm can be reached at (714) 641-3579.
Is Check Capital Management independently or employee-owned?
Check Capital Management is employee-owned, meaning the people managing client portfolios also hold a personal stake in the firm's long-term integrity and performance.
What makes Check Capital different from most financial advisors?
Two things set Check Capital apart: a value-investing philosophy that concentrates portfolios in a small number of thoroughly researched companies, and a Profit-Based Fee option, in which qualified clients only pay a management fee when their account value reaches a new high. Most financial advisory firms instead charge a flat percentage of assets regardless of investment performance.
Has Check Capital Management been featured in the media?
Yes. Check Capital Management has been featured in outlets including Fortune, Fox Business, Yahoo Finance, and the Wall Street Journal.
Details on specific coverage and awards are available on the firm's News and Awards pages.
Performance-Based Fee / Check Capital’s Profit-Based Fee
What is Check Capital's "Profit-Based Fee"?
The Profit-Based Fee is a performance-based fee under which eligible clients pay Check Capital 10% of their account's investment increase, calculated against a high-water mark, with no fee owed in years the account is down. It's offered as an alternative to the traditional fee structure most advisors use, which charges a set percentage of assets regardless of performance.
How is the Profit-Based Fee calculated?
The fee is 10% of any new appreciation above the account's prior high-water mark. For example, if an account starts at $1,000,000 and grows to $1,100,000 by the next annual assessment date, the fee is 10% of the $100,000 gain, or $10,000; the $1,100,000 value now becomes the high-water mark for the next period.
What happens if my account loses value in a given year?
No Profit-Based Fee is charged in a year the account doesn't exceed its prior high-water mark. The billing period simply extends until the account regains and surpasses its previous high, at which point the fee applies only to the appreciation above that prior high, not the full recovery. As firm President Steve Check has put it: "If we have a down year, we don't get paid."
Who is eligible for the Profit-Based Fee?
The Profit-Based Fee is available only to clients who meet the SEC's definition of a "Qualified Client" under Investment Advisers Act Rule 205-3. As of the SEC's inflation adjustment effective June 29, 2026, a client must have either a net worth of more than $2.7 million (excluding primary residence and related debt) or at least $1.4 million under management with the adviser.
What is Check Capital's minimum account size?
Check Capital's general minimum for managed assets is $500,000. Clients between $500,000 and the SEC's Qualified Client assets under management test can still access the Profit-Based Fee if they meet the net-worth test.
Why does Check Capital offer a profit-based fee when most advisors don't?
Check Capital offers it because the firm believes an advisor's compensation should be tied to whether it actually makes money for clients. Most financial advisors are compensated as a fixed percentage of assets under management regardless of whether the account gains or loses value in a given year; Check Capital's leadership has said publicly it considers linking fees to results "the right thing to do."
Why do most Check Capital clients choose the Profit-Based Fee?
The majority of Check Capital's clients elect the Profit-Based Fee over a traditional Assets-Based fee. In the firm's experience, clients are far more comfortable paying a fee that rises when their account rises, and paying nothing in years the account doesn't grow, than paying a fixed fee regardless of results.
Is a traditional, assets-based fee also available?
Yes. Clients who don't meet the SEC's Qualified Client requirements, or who simply prefer a traditional structure, can engage Check Capital under a standard fee based on assets under management. Contact Check Capital directly for current fee schedules.
Investment Philosophy
What is Check Capital's investment philosophy?
Check Capital is a value-oriented investment manager that aims to buy shares of high-quality, industry-leading businesses only when it believes those shares are trading below their intrinsic worth, and to hold them for the long term. The firm favors companies run by owner-operators with meaningful personal stakes in the business, on the belief that this alignment of interests produces better outcomes for shareholders.
How concentrated are Check Capital's portfolios?
Check Capital typically runs concentrated portfolios of 12 to 20 stock holdings rather than broadly diversified portfolios of hundreds of names. The firm's average holding period is well over five years.
How long does Check Capital typically hold a stock?
Check Capital's average holding period across its flagship Quality Growth Program is over five years, reflecting a long-term, business-owner approach to investing rather than short-term trading.
What is Check Capital’s investment philosophy during volatile markets?
Check Capital's stated approach through volatile markets — including 2020, 2008-2009, 2000-2002, and 1987 — is to avoid panic-selling and to buy only after diligent analysis when it believes high-quality companies are underpriced. The firm's philosophy holds that stock prices eventually reflect the underlying business's prospects, even though prices can swing sharply in the short term.
Investment Programs
What investment programs does Check Capital offer?
Check Capital offers several distinct investment programs: the Quality Growth Program (its flagship long-term equity strategy), the Private Program (a higher-risk, options strategy), the Berkshire Covered Calls Program (a lower-risk options strategy), and the Two-Bucket Approach (an asset-allocation framework for managing withdrawals).
What is the Quality Growth Program?
The Quality Growth Program is Check Capital's flagship strategy, in place since the firm's founding in 1987. It focuses on buying industry-leading companies with durable profits when the firm believes they're selling at a bargain, typically holding 12 to 20 stocks for four years or longer.
What is the Private Program, and who is it suitable for?
The Private Program is a higher-risk Check Capital strategy that uses stock options for leverage (though not borrowed money) and is intended for investors who can tolerate significant volatility and the possibility of loss. It's generally used by more aggressive investors as a portion of a broader portfolio, not as a full asset-allocation solution on its own.
What is the Berkshire Covered Calls Program?
The Berkshire Covered Calls Program is a lower-risk strategy that writes covered call options against Berkshire Hathaway stock, aiming for returns superior to most bonds while using options to reduce risk rather than to speculate.
What is the Two-Bucket Approach?
The Two-Bucket Approach is Check Capital's asset-allocation framework for retirees and other clients drawing income from their portfolios. "Bucket One" holds several years of near-term living expenses in cash and short-term bonds, while "Bucket Two" holds stocks intended for longer-term growth; each year, if stocks are at a new high, money is moved from Bucket Two to refill Bucket One, so clients aren't forced to sell stocks during a downturn.
Working With Check Capital
How do I get started with Check Capital?
Prospective clients start with a conversation about their financial circumstances, goals, and time horizon, from which Check Capital can evaluate their financial situation to best understand their needs. From there, clients collaborate with advisors to choose the investment program(s) and fee structure most suitable for them.
Does Check Capital hold or have custody of my money?
No. Check Capital does not act as custodian of client funds. Client accounts are held at either Charles Schwab or Fidelity Investments, which keeps client assets separate from the advisory firm itself.
Will I have online access to my account?
Yes. Clients retain full, immediate online access to their accounts at all times, since the accounts are held directly at the independent custodian brokerage rather than by Check Capital. We provide full transparency regarding your accounts and assets.
Can Check Capital create a retirement plan for me?
Yes. Check Capital creates complimentary retirement plans based on each client's specific financial circumstances and goals, including guidance on how to split assets between near-term cash needs and longer-term stock investments (see the Two-Bucket Approach).
Does Check Capital work with clients outside of California?
Yes. Although Check Capital is headquartered in Costa Mesa, California, the firm currently serves clients in 46 U.S. states.
Our Team
Who leads Check Capital Management?
Steven Check, the firm's founder, serves as President and Chief Investment Officer and is responsible for overall investment policy and portfolio management. Christopher Ballard, CFP®, serves as Managing Director overseeing business development and general client service.
How many people work at Check Capital, and what do they do?
Check Capital has 12 full-time employees: Steven Check and Research Director Ryan Kinney conduct company research, a compliance officer/trading manager (Robert Hill) oversees regulatory compliance and trading, six relationship/investment officers work directly with clients, and the remaining staff provide administrative and marketing support.
Who conducts investment research at Check Capital?
Steven Check (President and CIO) and Ryan Kinney (Research Director and Portfolio Manager) conduct the firm's fundamental, bottom-up research into prospective investments. Mr. Kinney joined Check Capital in 2013 and became Research Director and Portfolio Manager in 2016.
Are Check Capital's advisors professionally credentialed?
Yes. The team includes a CERTIFIED FINANCIAL PLANNER™ professional (Christopher Ballard), two Chartered Retirement Planning Counselor® designees (Jock Meeks, Jim Waite), and an Accredited Asset Management Specialist℠ (John Thatcher), among other industry credentials and decades of securities-industry experience.
Trust, Regulation & Verification
Is Check Capital Management a fiduciary?
As an SEC-registered investment advisor, Check Capital is subject to the fiduciary standard under the Investment Advisers Act of 1940, which legally requires the firm to act in its clients' best interests.
How can I independently verify Check Capital's regulatory status?
Check Capital's SEC registration, disciplinary history, and business details can be looked up directly through the SEC's Investment Adviser Public Disclosure (IAPD) database at adviserinfo.sec.gov. The firm's Form ADV Part 2A/2B brochure and Form CRS are also available directly on Check Capital's website.
Is Check Capital's investment performance independently verified?
Yes. Check Capital states that its investment program performance is verified by an independent third party, and publishes fact sheets for each program on its website. Our firm chooses to follow the CFA Institute’s Global Investment Performance Standard (GIPS®), meaning that we adhere to standards that ensure our performance reports are accurate, fair and transparent.
Click here to view our investment program page, which includes our performance.
Where can I read Check Capital client testimonials?
Client testimonials are published on Check Capital's Testimonials page. As required by SEC marketing rules, the firm discloses that these testimonials are from actual Check Capital clients (see the firm's Important Disclosures page for full detail).