Financial Check-up

Last updated on May 13th, 2019 at 02:36 pm

A Mequon-based asset management firm plans to more than double its investment funds in the next few years as its client base increases and its funds grow. Dr. Jerome Mahalick, a board certified prosthodontist and certified investment management consultant, launched Asset Management for Professionals Inc. (AMP) in 1994 when he was in private practice as a dentist. He currently serves as chief executive officer of AMP.

Today, AMP is operated out of Mahalick’s home in Mequon, but the firm has plans to hire more financial professionals, increase its investment funds from $100 million to $250 million and move to a new office space in Mequon within the next four years, Mahalick said.

AMP uses 10 different asset allocations, called Quantfolios, to create a controlled and conservative growth rate for a client’s investment. The Quantfolios are developed using quantitative criteria and a proprietary software application, Mahalick said.

The approach is an academic concept based on research from business schools including the University of Chicago, Stanford University, Massachusetts Institute of Technology and the University of Pennsylvania, Mahalick said.

"We have a conservative and stable approach and are trying to blend and maintain retirement dollars," he said.

The Quantfolios process and reduced risk appealed to Mahalick’s peers at the Wisconsin Dental Association. Mahalick served as chairman of the asset management committee for the association from 1986 to 1995 and gained many clients for AMP through the position.

"I started with nothing and now I have 110 clients and about 60 percent of them are dentists," Mahalick said.

AMP’s early success caused Mahalick to sell his practice and hire on Wayne Hansen, a financial professional as partner in 1998.

Mahalick’s medical background makes dentists a good target market for AMP. Other clients of AMP include individuals who have sold their businesses and retired and small businesses working with 401(k) programs.

"We plan to have a continued focus on dental professionals and expand into other professions," Mahalick said. "I would also like to expand my relationships with accountants in northern Wisconsin for a joint venture."

AMP looks for clients who are interested in a long-term financial plan of at least five years and require a minimum investment of $250,000. The average client of AMP has $400,000 in investments, Mahalick said.

AMP’s 100 Percent Equity Quantfolio has outperformed the S&P 500 Index for the first, third and fifth years of its six-year existence, Mahalick said.

"If (the stock or mutual fund) increases 80 percent and then decreases by 40 percent, then that is a big loss. But if it increases four percent one year and five percent the next, the fund modestly exceeds performance," Hansen said. "We focus on compound returns."

Mahalick has three employees. He is planning to bring on more young professionals in the next six months, he said.

"What sets us apart from the competition is the size of our firm, who we are and how we operate," Hansen said. "There is a personal relationship between the client and the person managing the money, compared to larger (financial management) houses. In addition to a business relationship with the client there is a personal relationship. This helps us grow with the client and as time goes on, the level of trust and confidence grows."

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