Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Muhlenkamp charges fees on its funds that are in the second most-expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. Compared with peers, Muhlenkamp has been adept at keeping portfolio management talent, providing continuity for strategies, as shown by low turnover over the past five years. Finally, it's encouraging to see the firm showcase strong risk-adjusted performance across its entire open-end and exchange-traded fund lineup, with an average five-year Morningstar Rating of 5.0 stars.
Category
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