Strategic Risk and Investment Management

Mowery Capital Management takes a disciplined and strategic approach to risk and investment management. We are based in Frisco, TX, serving the communities of Allen, McKinney, Plano, Dallas and all of North Texas. Learn about our investment philosophy.

Strategic Allocation
The MCM investment management strategy is primarily focused on asset and sector allocations. Our primary investable asset classes are stocks, bonds, and ETF’s (Electronic Traded Funds). Within these investments, there may be differing investment styles of growth, value, geographic location, business size, etc.; or a market-oriented index approach. In a general market decline, havens may be sought in income, producing investments such as bond portfolios and money market funds. Each change in the general market environment and/or economy demands some portfolio adjustment.

Mowery Capital Management Investment Mix
MCM uses a mix of the vehicles of U.S. listed Common Stock, Fixed Income, and ETF’s to create value and lower risk for our clients.

Listed Equities, Common Stock
While the investment strategy is one of asset allocation, MCM does manage the equity portfolio internally. As a portfolio manager, MCM pursues an earnings growth investment strategy. Particular industries or industry sectors’ earnings respond at different points in the economic cycle. This strategy and style has allowed MCM to move or rotate between different asset classes and sectors among U.S. listed securities.

Fixed Income (Bonds)
Further asset diversification to provide for current income needs and safety of principle is accomplished through the ownership of high quality fixed income instruments, such as, but not limited to, U.S. Treasury Bills, Notes and Bonds, U.S. Agencies, U.S. Domestic Corporate Bonds, and Commercial Paper.

ETF’s
Diversification among any or all of these strategies is a judgment that the MCM portfolio manager must make. For those asset classes and investment management styles different from the MCM investment management style, MCM uses the plethora of funds that are available using ETF’s. These ETF’s give MCM the ability to diversify among the different asset classes mentioned above.

Mowery Capital Management Portfolio Selection

  1. The General Market Environment – For these next few years and possibly the foreseeable future, the markets are expected to move in a large range as the world markets become more global. Investment monies will flow back and forth as the economies do less well or better than their neighbors. As interest rates remain low, Central Banks will use currency flows to adjust for these relative differences. These flows will cause a certain amount of volatility as markets make adjustments to the changing economies. Our job will be to allocate client investment funds to asset classes that respond to these changes.
  2. Investment Style – With over 100 years of combined investment experience, Mowery Capital Management, LLC has developed an objective and disciplined approach to investment management that combines the attributes of fundamental research with quantitative and technical execution. This approach has led to the development of several strategies whose main goal is to provide a return greater than a selected market index with less risk using proprietary multi-factor models. In order to achieve this type of result, well-defined buy and sell disciplines are enforced to ensure a sound investment methodology. MCM’s disciplined investment strategy adheres to strict guidelines. The theme of our investment approach and business culture is best described by four characteristics:
    • Transparency – the purity of full disclosure that ensures complete accountability and trust
    • Consistency – in terms of track record, investment process, and management team
    • Risk-Control Measures – building portfolios that provide upside potential while controlling downside risk
    • Repeatability – demonstrating that all the ingredients are in place—people, processes, and procedures—to maintain the same disciplined, style-adherent approach
  3. Equity Selection Strategy and Criteria – MCM’s objective is to provide long-term capital appreciation through ownership of growing companies, characterized by above average and sustainable earning growth, which is greater than the Russell 1000 Growth Index, without incurring significantly greater risk than the Index itself. These stock selections normally include medium-sized companies as well as some with a larger market capitalization. As an investor, MCM seeks those U.S. listed companies that are able to produce actual earnings and cash flow. We view these results as a measure of the management of the portfolio company. These managers have aligned their economic interests with the shareholders. We are first interested in their cash flow and earnings potential, then secondly, interested in the asset sectors that will both maximize return and lower risk. Sell Discipline. MCM will balance price and risk by scaling back appreciated positions through portfolio rebalancing. Fundamental changes in a company, a better opportunity in the same industry, excessive valuations; all could cause MCM to make a change. This equity investment style has permitted Mowery Capital Management to add value to client portfolios since 1994.
  4. Reporting – MCM will report quarterly to clients and interested friends of our progress and views. Clients will receive monthly statements of account and quarterly performance reports covering the respective calendar periods.
  5. Caution – While we believe our own estimates of the financial information from companies and those from other sources to be reliable, we cannot guarantee accuracy and completeness. We at Mowery Capital Management will work hard for you. But, the price of any investment, equity shares and debt, can go down as well as up; and what we or the markets did in the past may not happen in the future.