With $1 billion under management, Minneapolis Portfolio Management Group (MPMG) might not have the scale of a Vanguard or a BlackRock, but in the world of value investing, a lot of the best ideas simply don't scale. MPMG can go small and hang on until its convictions pay off.
There's nothing arcane about that approach. Just straightforward portfolio management through investments in established companies that actually make sense from the economic end. They've beaten the S&P 500 by 0.9% over the past quarter century . . . a testament to the long view and, over time, enough to justify advisory fees compared to a vanilla index fund.
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MPMG is an employee-owned company, and they invest alongside their clients. They aren't selling products simply to get you to add the newest, shiniest, hottest widget to your screen or portfolio. As Institutional Director Anthony Shink says, "We're not trying to invest in what's working for today, but what's working for tomorrow."
MPMG employees have skin in the game and that leads to knowing the companies they invest in as intimately as the portfolio managers and owners of those businesses.
"We just focus on finding great investments for our clients, as well as ourselves, and we emphasize and invest side by side with our clients trying to find great companies," explained Shink during our conversation.
Thats certainly different from the average asset management firm chasing diversity through hot names. And clients of advisors who use MPMG know that the companies they invested in are chosen due to intimate knowledge and research rather than "hot tips" or "word on the street" type knowledge.
Value isn't momentum. It isn't about heat. It's a marathon that requires diligence and skill. They've been doing it since 1995. They've seen it all.
Many of the individuals who work at MPMG came up through the retail side of the business. Shink, for example, spent 13 years as an advisor, so he knows what it's like to be on the advisor's side of the desk.
Furthermore, MPMG offers one thing and one thing only. They're not trying to be all things for all people. They do value
Knowledge of the advisor's side of the desk plus sticking to doing one thing very well rather than chasing a lot of hot disciplines makes for a strong combination.
