Jeff Muhlenkamp, a top-performing fund manager, has shared his investment strategy for the current market. Despite the stark difference in stock market performance between 2022 and 2023, Muhlenkamp’s namesake fund, Muhlenkamp Fund (MUHLX), has continued to outperform. The fund is in the top 1% over the last three years, beating 95% of peers last year and 87% in 2023. Muhlenkamp believes this success is due to his focus on value-oriented names and his willingness to stick with certain sectors, such as energy, despite their decline over the course of the year.
Muhlenkamp’s current bullish positions include tech giants Apple and Microsoft, semiconductor firms Broadcom and Microchip, regional banks, and homebuilders. Although he acknowledges that these firms are trading at expensive valuations, he believes they are well positioned for long-term success due to their ability to keep growing by launching new products and services.
Additionally, Muhlenkamp is a proponent of owning gold, which he does through royalty companies. Rising geopolitical tensions have caused central banks across the world to increase their gold holdings, making it a valuable hedge against the devaluation of fiat currencies.
Muhlenkamp’s investment strategy has proven successful in both good and bad market conditions, and he emphasizes the importance of patience and a long-term outlook. Regardless of market volatility, Muhlenkamp believes that value-oriented names, consistent growth, and a diversified portfolio are the keys to success for investors.
