A required submission to the Securities and Exchange Commission (SEC) by a professional investment adviser that specifies the investment style, assets under management, and key officers of the firm, you may view/download our ADV below.
- Form ADV Part 1
- Form ADV Part 2A
- Form ADV Part 2B
- Form ADV Part 3 (Form CRS)
- Form ADV Parts 1, 2A, 2B, 3
Assets Under Management
As of September 30, 2023, Muhlenkamp & Company, Inc. had $344,798,279 in discretionary assets under management.
Methods of Analysis, Investment Strategies, and Risk of Loss
Muhlenkamp & Company utilizes political, economic, fundamental, and technical input to accomplish our investment goals. This input consists of data and its interpretation. To the extent available, we acquire data and its interpretation from outside sources including economists, banks, broker-dealers, research organizations, business publications, and government sources. We do not attempt to duplicate good research available from outside sources. We do monitor, however, the data we receive to insure its accuracy, and insist on understanding the basis for conflicting opinions and their implications for investment decisions.
We concentrate our proprietary research efforts in those areas where good data or a diversity of knowledgeable opinions are not yet available.
With this input, we are in a position to make sound, informed judgments concerning business fundamentals, security valuations, and market timing.
Muhlenkamp & Company principally invests in a diversified list of common stocks, primarily in companies that we have determined to be highly profitable, yet undervalued. We look for those companies we believe to have above average profitability, as measured by corporate return on equity (“ROE”), and that sell at below average prices as measured by price-to-earnings ratios (“P/E”). Company size, based on market capitalization, is of little importance to the investment process. In pursuing our investment objectives, Muhlenkamp & Company may also invest in securities of foreign issuers.
Muhlenkamp & Company does not subscribe to the philosophy that stocks can be acquired and held forever. We purchase stocks that we generally hold for three or more years. While short-term swings in the marketplace are not ignored, they are subordinate to the quest for long-term values. We will sell a stock when we believe the company’s intrinsic value has been fully realized by the market, earnings disappoint, growth prospects dim due to changing market or economic conditions, the company falls short of expectations, or we find a better investment. We may purchase fixed-income or debt securities from time to time as substitutes for stocks when we determine that market conditions warrant their purchase.
Historically, common stocks have outperformed other types of investments; however, stock prices will fluctuate in the short term. Like any investments, the investments we manage are subject to risks. The value of your investments can go up or down. This means that you could lose money. The principal risks in our investment approach are as follows:
Our success depends largely on our ability to select favorable investments. Different types of investments shift in and out of favor depending on market and economic conditions. Because of this, our clients’ portfolios will perform better or worse than other types of investments depending in part on what is in favor. In addition, there is the risk that the strategies, research, or analysis techniques used by us and/or our selection of securities may fail to produce the intended result.
Small- and Medium-Sized Companies Risks
Investing in securities of small- and medium-sized companies may involve greater volatility than investing in larger and more established companies because they can be subject to more abrupt or erratic share price changes than larger, more established companies. Small companies may have limited product lines, markets or financial resources, and their management may be dependent on a limited number of key individuals. Securities of such companies may have limited market liquidity and their prices may be more volatile.
There is a possibility that companies or other issuers whose bonds our clients own may fail to pay their debts (including the debt owed to holders of their bonds). Bonds of companies with poor credit ratings generally will be subject to higher risk.
Stock Market Risks
We select stocks based upon their potential for long-term growth; however, there can be no assurance that the objective will be met. Our investments are subject to risks that affect common stocks in general, such as economic conditions and adverse changes (generally increases) in interest rates. Investments in stocks are subject to the risk that the market may never realize their value, or their prices may go down. Short-term volatility often accompanies a long-term approach to investing. These and other factors could adversely affect your investment. Generally speaking, we are willing to weather short-term price risk (volatility) for long- term gains, and tax considerations reinforce this position. We judge ourselves on returns after taxes and inflation.
Bond Market Risks
Our investments in bonds may be subject to risks that affect the bond markets in general, such as general economic conditions and adverse changes (generally increases) in interest rates.
Foreign Investment Risks
Foreign investments involve certain risks not generally associated with investments in the securities of United States issuers. There may be less information publicly available concerning foreign issuers than would be with respect to domestic issuers. Different accounting standards may be used by foreign issuers, and foreign trading markets may not be as liquid as U.S. markets. Foreign securities also involve such risks as currency fluctuation risk, possible imposition of withholding or confiscatory taxes, possible currency transfer restrictions, expropriation or other adverse political, social, and economic developments, and the difficulty of enforcing obligations in other countries. These risks may be greater in emerging markets and in less developed countries.