- Jeff Muhlenkamp of the Muhlenkamp Fund believes stocks could fall another 20% to 25%.
- His fund has outperformed this year as the market rewards investors focused on profitability.
- Muhlenkamp shared two sectors and five stocks he’s investing in to beat macroeconomic headwinds.
One need not look any further than Jeff Muhlenkamp for evidence that in the investing world, patience is a virtue — especially for a dark horse.
The portfolio manager’s eponymous Muhlenkamp Fund (MUHLX) has beaten 99% of its peers year-to-date. It’s an absolutely staggering reversal of fortunes after the fund consistently performed in the bottom quartile as measured by returns in all but one year from 2014 through 2020. But in 2021, the fund shot to the top quartile, though that outperformance now pales in comparison to its current top 1% ranking for one- and three-year trailing returns, according to Morningstar.
It’s even more astonishing considering that 45% of Muhlenkamp’s portfolio was in cash as of July, and by his own admission that figure hasn’t changed by very much because the macroeconomic situation remains largely the same.