Follow the S&P? It follows them - Minneapolis / St. Paul Business Journal:

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(MPMG) has been spared that and a quick glance atthe firm’s performance chartf shows why. Minneapolis-based MPMG has beaten Standard Poor’s 500 index fundws every year for the past10 years, no smallp feat considering the market gyrations over the past decade. Througn the dot-com cataclysm to the boom-and-bust of the past few MPMG has managed to stay ahead ofthe industry’s most important index — sometimes by a lot. In the S&P 500 was up 28.7 while MPMG was up 48 percent. The fund has lost ground over 2008: MPMG was down 33.
3 but the S&P 500 dropped even more, down 37 “When the hurricane hits, some peopl get less wet,” said Harrison Grodnick, the youngerd half of the father-son team that runs “We’re beating it enough to add value to our saidPhil Grodnick, Harrison’s father. MPMG is an all-capitalizatiobn manager, meaning it invests in small-, mid- and large-sizede companies. It has about $600 million in assets under management, and its minimunm account sizeis $1 million.
The firm’s strategy is to look for bargains in all asset sizes and worldr markets because the Grodnicks believs that market risk already has been minimize by the timea company’d valuation has dropped. However, the companies must be in growth industries, and they must have strong management This strategyrequires long-term investors, since returns mighty not be instantaneous. “We’re for any investor lookinf to create wealth over three tofive years,” said Harrisoj Grodnick. “There’s no immediate gratification.
” Beating the S&l 500 every year for the past decade is saidJoe Schwarz, managingf member of Schwarz Dygos Wheeler Investment Advisors, basex in Minneapolis. “[The S&P 500] is the most importantr measurement,” Schwarz said. “The Dow Jones is the first [index] everyonr looks at. But the S&P is the 500 largest stockds inthe U.S., and that’s actually the best gauge of how the stockws are doing.” There are risks involved with the kind of market-timiny strategy MPMG engages in, said Davi Vang, chairman of the finance department at the University of St.
“It is unique to have a 10-year run better than the market index,” Vang “However, the odds of a fund consistently gettinh market timing correct means that after 10 they might be about due a mistake.” The Grodnicks, however, think theifr strategy of “anticipating” with a global perspective will continue to work going Their focus now is on companiesx involved with gold, energy, agriculture, infrastructurr and water. “In the year 2050, there will be over 10 billionm peopleon earth.
That’s a lot of mouthse to feed,” said Harrisob Grodnick, adding that their five growth categories represent wherethe pent-up demand will be in the