Unlike market prognosticators who base their investment advice on their ability to forecast the future and outsmart the market, our philosophy is founded in academics, statistics, and historical evidence. We believe that attempts at "outsmarting the market" usually fail. By contrast, a globally diversified portfolio that is intelligently adapted and rebalanced through time to reflect prevailing conditions tends to generate superior risk-adjusted results.
We implement our investment approach by:
Evaluating each client’s personal investment objectives and tolerance for risk.
Employing those investment strategies that are best suited for each client.
Developing a personalized portfolio for clients using a core-satellite approach.
Investing in low cost-index tracking ETFs, consistent with our client’s investment objectives.
Utilizing individual securities such as municipal bonds and individual stocks to a limited extent.
Monitoring leading economic and market indicators and implementing hedges when it appears the risk of adverse market or economic conditions are unusually high.
The Milwaukee Company’s investment strategies are designed to generate alpha over the long term by lessening risk over the short term. Our strategies use academically tested risk management techniques such as dynamic asset allocation, trend following, mean variance optimization, and probability distributions in an effort to lessen declines in portfolio values during secular bear markets. Additionally, The Milwaukee Company monitors many widely accepted capital market risk signals and economic indicators in order to gauge the risk of the overall market and current economic conditions.
The Milwaukee Company compares the performance of client accounts to a benchmark comprised of broad market index funds with allocations that are consistent with each client’s individual investment objective. We believe that an investment benchmark should be unambiguous, investable, measurable, and robust. We also believe the performance and management of a benchmark should be safeguarded from manipulation, and unburdened by market frictions experienced by real-life portfolios such as transaction costs, expenses, management fees, and capital gains taxes.
Even the best investment performance can be undermined if the impact of taxes is not carefully considered. Therefore, The Milwaukee Company is careful to avoid unnecessary or excessive ordinary income taxes, and to proactively manage capital gain taxes.
Client accounts are custodied at Fidelity Investments and can be directly accessed, revised, and monitored by The Milwaukee Company clients. Fidelity Investments provides The Milwaukee Company’s clients with statements of all client account activity. The Milwaukee Company also uses Morningstar software to generate monthly and yearly reports of client account activity and performance. These reports are posted to a secure web portal that our clients may access online.