Investment management firms in Michigan control equities, income securities, real estate and derivative products of these assets. Investment firms in Michigan represent the customers, or “buy side,” of the investments business and the sellers, or “sell side,” are the investment bankers.

Michigan investment management firms classify themselves by the specific type of asset managed. Investment companies in Michigan may dedicate themselves to a specific client base while others serve all client types, including businesses that have assets to invest.

It is important to distinguish between the three basic investment types when evaluating Michigan investment firms:

1. Mutual funds use the contributions of individual investors to form a single fund. Michigan investment management firms typically use mutual funds for investors that do not have a high net worth.

2. An investment agency in Michigan forms hedge funds with contributions from members of a private partnership and typically invest in public securities or a financial derivative of a public security. Hedge funds may employ many different strategies to make a profit.

3. The source of institutional funds is pensions, endowments and foundations for non-profit organizations. Investment management firms in Michigan invest these types of funds more conservatively than mutual funds.

Action Steps
The best contacts and resources to help you get it done

Select investment management companies in Michigan that look at long-term results

A high degree of diversification to minimize risk is the most common strategy for investment management firms that consider long-term results. Michigan investment managers look for stocks that have a value that is not reflected in their current prices combined with a high earnings potential.

I recommend: The Service Employees International Union is the fastest growing union in North America and lists several investment firms in Michigan that specialize in retirement planning. Complete the form at AllianceBernstein and select retirement planning as the primary topic of interest to have the nearest agent contact you.

Find an investment management firm in Michigan for wealthy investors

A unique investment management plan is frequently beneficial for affluent clients. The financial advisers for these types of clients should work closely with the investment management firm to increase the client's wealth over the long-term.

I recommend: Wealth management is one of the core businesses of Wachovia. You can locate your nearest financial center by entering your city and state or zip code. Smith Barney provides a range of financial services, including wealth management. You will begin the financial consultation questionnaire by entering your zip code or city and state along with the search radius.

Select Michigan investment services that are local to your area

Firms based in a specific area will manage equities and bonds investments in local business more efficiently than other investment managers. That local knowledge will put your money to good use, not only increasing your own worth, but helping other local business owners expand and prosper as well.

I recommend: WILMOCO is a privately owned investment management firm based in Detroit that specializes in investments for individuals and institutions. Alpha Capital Management also is in Detroit and is focused on managing accounts for institutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Fund performance is the gold standard by which an investment management firm is measured. Financial analysts use standard indices and peer groups to compare the performance of different funds over the same time period. An investment agency in Michigan should assess fund performance over a long period, usually at least 3 years. This time frame will minimize the effect of short-term fluctuations and the business cycle.