Pastorship & Portfolios: The Journey to $160 Million at Kerusso Capital Management

Kerusso Capital Management was founded with a vision to manage money effectively and embody principles of equitable and collaborative leadership.

Randy Cain, the firm's founder, brings a unique perspective to investment management. He blends his extensive experience as an equity investment analyst with his role as a pastor.

In this interview, Cain shares how his faith influences his leadership style, investment philosophy, and approach to building a legacy firm.

After nearly 30 years in investment, working as an equity investment analyst and portfolio manager, I founded Kerusso Capital Management to continue managing money in the Value fashion I’ve followed while creating a legacy organization.

At Kerusso, we prioritize equitable, collegial, and collaborative leadership, where people work as partners rather than in a traditional hierarchy. This is the first organization I've worked at that has total employee ownership, and everyone is included in important business decisions—your function is secondary to being a partner in the firm.

My role as a pastor greatly influences my leadership style and how I manage money. As a pastor, I focus on meeting people where they are and helping them become the best version of themselves, as God intended. When investing in stocks, I seek the gap between value and worth, investing in companies where I see greater potential than what the market reflects in their current price.

As a Christian, I strive to embody servant leadership. Jesus said the greatest should be the servant of all (Matthew 23:11). I apply this principle in my leadership at Kerusso by serving both my congregation and my clients, always aiming to show up as my most authentic and excellent self while helping others do the same. This mindset shapes both my ministry and my portfolio management approach.

Can you elaborate on your concept of "redemption capital" and how it shapes your investment philosophy?

The concept of "redemption capital" stems from my thesis at Duke Divinity School, titled "The Redemption of Capitalism Through Christian Principles." Many view capitalism as inherently corrupt, but I believe all economic systems are neutral—it’s the subjective application by individuals that introduces corruption.

In my investment philosophy, pursuing what we call "Value Creating Opportunities" involves a form of redemption. We seek out companies that we believe are undervalued based on their fundamentals, even when the market disagrees. Our investment represents a belief that the market’s current assessment is flawed, providing an opportunity to exploit this disconnect for our client's benefit.

How do you balance your views on capitalism with your faith-based principles in managing investments?

I don’t believe capitalism is at odds with faith. While studying for my thesis, I read Adam Smith’s “The Wealth of Nations,” where he describes the "Invisible Hand." Some interpret this as the market operating with unrestricted freedom.

However, Smith also wrote "The Theory of Moral Sentiments," which predates "The Wealth of Nations" by 17 years. In this earlier work, Smith speaks of God and Deity, suggesting that the "Invisible Hand" is, in fact, God. This interpretation aligns capitalism with a faith-based system of economics rather than a purely secular one.

For me, investing is an expression of my faith. I strive to prudently generate returns for my clients, just as I aim to serve others in my ministry.

Could you discuss your strategy for intentionally recruiting from HBCUs?

Three of Kerusso Capital Management’s four partners are HBCU graduates. I attended Morehouse College, as did my son, Hamilton Cain, while Jazmin Gay graduated from Spelman College. None of us had much exposure to investing when we started college.

I didn’t learn about investing until after receiving a variable life insurance policy from my Great-Aunt Alma Brown, a Tennessee State University graduate. She and my Great-Uncle Julian Brown had invested in companies like Olin Corporation and Eastman Kodak, which sparked my interest in the field.

I believe many other students, especially those at HBCUs, have the potential to thrive in this industry if given the opportunity. This belief is central to my legacy. To turn this vision into action, Kerusso has partnered with Winston-Salem State University to offer an academic credit internship that introduces students to investment analysis.

We’ve completed three cohorts and are planning for our fourth. While we don’t exclusively recruit from HBCUs, we are intentional about doing so because we believe these institutions are rich with untapped talent, or "diamonds" that we help refine.

With your assets under management now exceeding $160 million, what are your plans for scaling the firm while maintaining your core values and investment approach?

We recently surpassed $160 million in assets under management, and my long-term vision is to eventually pass leadership to the next generation. I’ve worked at two entrepreneurial firms that no longer exist, and I believe their cultural and governance issues were key factors in their demise.

That’s why I emphasize a flat, collaborative structure at Kerusso, where every employee has day-one equity and is valued as a partner, not just for their functional role.

From an investment standpoint, we proudly remain a Value equity firm. Our strategy has served us well, and as we scale, we aim to maintain the same approach. As we grow into a multi-billion-dollar firm, we need disciples of our philosophy—people who can carry forward the principles that have made us successful.

Our three pillars—producing market-beating performance, proclaiming it through marketing and client service, and protecting it through back-office operations—guide our strategy. To ensure the firm ages well without becoming stagnant, we’re intentional about developing the next generation of leaders across these areas.

What advice would you give to aspiring entrepreneurs who want to align their business ventures with their faith or personal values?

As I often say, religion is what you claim, but faith is who you are. Hard times don’t make or break you—they reveal who you truly are and the strength of your faith. As an entrepreneur, you’ll face many challenges, and it’s your faith that will help you stay aligned with your values.

If your faith affirms the best version of you, don’t be ashamed to bring that into your business. If you check your faith at the door when you go to work, then you don’t truly have faith—you just have religion, and that needs to change. Scripture tells us that a double-minded person is unstable in all their ways (James 1:8). For true success, your business ventures and your faith must be in alignment, not in conflict.

Entrepreneurship isn’t for the faint-hearted—it’s for those strong in spirit, heart, mind, and body. As Hebrews 11:1 says, "Faith is the substance of things hoped for, the evidence of things not seen." Entrepreneurship is an act of faith, and it will reveal the kind of faith you have. Strong faith, strong entrepreneur.

Start your 7-day free trial today and gain exclusive access to news, interviews, and insights from a diverse business and investing ecosystem.