At the core of the Mill Creek Capital Advisors investment program is a finite set of investment options from which all client portfolios are constructed. Individual managers and investment programs are made available based not only on the basis of their superior investment outcomes, but also on how each manager’s investment strategy and approach complements the strategies and approaches of all other managers within the MCCA investment program.

Traditional Investments

Equity and fixed income securities issued by governments, institutions, and companies worldwide form the core of most MCCA client portfolios.

Within clients’ traditional equity portfolios, our objective is to broadly diversify investments across U.S. equity markets. We expect to participate in overall market returns through ownership of low-cost investments that seek to mimic market returns (e.g., index funds, ETFs) while also seeking to add excess returns by investing in concentrated portfolios run by active managers. We also invest in non-US equities, with the objective of adding to portfolio returns without materially increasing portfolio risks.

Clients’ fixed income portfolios are similarly broadly diversified across various sub-asset classes, including both taxable and tax-exempt securities. We take credit and term risk premiums into consideration, as well as a client’s tax situation, when constructing fixed income portfolios.

Alternative Investments

MCCA’s perspective is that a long-term, diversified program of alternative investments covering a broad spectrum of hedge fund strategies and private equity investments can add significant benefits to an investment portfolio.

Hedge Funds – Investment strategies with low-to-zero correlation to the public securities markets can provide a source of overall portfolio risk reduction.

Private Equity Funds – The different character of investments in companies that do not trade in the public securities markets can provide a source of incremental portfolio returns over a long-term investment horizon.

Investing in alternatives presents additional risks that must be carefully managed, including illiquidity, lack of transparency, leverage, tax implications, and complex fee arrangements.

The MCCA team has been successfully investing in hedge funds and in private equity for over 10 years. We have created several broadly diversified investment vehicles (“fund of funds”) comprised of alternative assets and strategies for the exclusive use of Mill Creek Capital Advisors’ clients. MCCA does not charge separate fund management fees for or participate in the gains of these funds.