Fowler Bull Group, based in Denver, CO, is a team within Morgan Stanley Private Wealth Management with senior members Shawn Fowler and Max Bull. With over $14.7 billion in custodied assets, the team serves 93 clients, primarily entrepreneurs in industries like defense, healthcare, and technology. Fowler, who has been with Morgan Stanley for nearly 25 years, focuses on growing the value of assets and cash flow for clients, emphasizing the importance of maintaining revenue in real-time.
The team’s investment philosophy is consistent across all clients, with a focus on four main asset groups: long equity, fixed income, alternatives, and cash. They prioritize dividend growth within equities to ensure a steady cash flow for clients. On the fixed income side, they aim to be tax-efficient with low turnover, while also allocating a portion of the portfolio to cash-flowing real estate and private equity. This approach, emphasizing consistency and durability, allows the team to maintain their strategy even in turbulent market conditions.
Looking ahead, Fowler believes that equities are currently trading above historical averages, but maintains a fully invested stance for clients. He anticipates further rate cuts in the future, with a predicted Federal funds rate of 3% to 4% becoming the new normal. While he expects positive corporate earnings and dividend growth, he cautions that stock market returns may be more modest going forward, with single-digit returns for the S&P 500. Despite expensive valuations, Fowler sees opportunities in commercial real estate post-correction, suggesting it as a compelling asset class to consider.
One of the key pieces of advice the team offers to clients, particularly private business owners facing liquidity events, is to take a slow and patient approach to deploying capital. With many clients experiencing or expecting significant financial transitions, Bull stresses the importance of being deliberate in decision-making and avoiding hasty moves. By maintaining a long-term perspective and focusing on consistent growth and cash flow, the Fowler Bull Group aims to help their clients navigate challenging market conditions and achieve their financial goals with confidence.
