James I. Midanek and John D. Pak have formed Midanek/Pak Advisors, LLC an independent investment advisor firm specializing in high-grade fixed income investment management and risk management consulting.
Midanek and Pak are best known as the former managers of the Turner Ultra Short and Short Duration Bond Funds (previously the Solon Short Duration Government Funds which Midanek co-founded and managed since their inception in 1994). Both the Turner Ultra Short and Short Duration Bond Funds had five star ratings from Morningstar, Inc. and were among the top performing funds of their type until Midanek and Pak left their management in June of this year. John Pak began his partnership with Jim Midanek in January of 2000 when he joined Turner as a senior portfolio manager of fixed income. Midanek was the chief investment officer of fixed income for Turner.
Jim Midanek, longtime Wall Street veteran and expert in the arena of structured finance, said, “We see our new organization as an ideal opportunity to do what we do best – provide high-grade fixed income investment management to institutional and individual investors. We view ourselves as offering low-risk, highly liquid portfolios in which we use our knowledge especially that of the mortgage-backed securities market and other structured products to find what amounts to undervalued securities. We strive to add value by outperforming the benchmark without significantly increasing risk.”
Midanek/Pak Advisors will offer active management fixed income strategies designed for capital preservation and growth including Ultra Short Duration, Short Duration, Core High Quality as well as various indexed portfolios. The investment process emphasizes high quality securities, low risk strategies and disciplined risk management.
“Our Ultra Short Duration portfolio features a minimum issue rating of AAA and an average duration of approximately 6 months,” Pak said. “It is an alternative or supplement to cash with an historical yield advantage and is not subject to arbitrary money market ‘security’ restrictions. This is a good place for your cash if you’re pursuing higher yields than money market funds.”
The Ultra Short product is designed for investors seeking higher yields than money market funds typically offer. The strategy can be used to obtain a steady stream of income, save for shorter-term financial goals or as a way to balance more aggressive equity holdings in a portfolio.
Midanek/Pak fixed income products will reflect the low standard deviation, high sector quality, high credit quality and high liquidity style for which the investment team is recognized. “Our aim is no surprises,” Midanek said. “We offer a consistent-common-sense fixed income investment approach and make investment and service decisions based on what is best for the client. We believe that fixed income portfolios should provide liquidity, stability and consistent returns over time.”
Jim Midanek brings 21 years of investment management experience to Midanek/Pak Advisors. He joined Turner Investment Partners in 1998, as the chief investment officer of fixed income. Before joining Turner, he was the chief investment officer and co-founder of Solon Asset Management and portfolio manager of the short duration government funds. From 1992 to 1994, he was chief investment officer to the fixed income group of Montgomery Asset Management, where he managed fixed income funds and separate accounts. Formerly, he was a senior vice president and head of mortgage-backed securities trading, sales and research at J.P. Morgan Securities and head of mortgage trading and sales at E.F. Hutton as well as a vice president of Drexel Burnham Lambert, Inc. He has a bachelor’s degree in accounting from Queen’s College.
John Pak has 10 years of investment experience. He was a senior portfolio manager and analyst with Turner Funds. Previously, he was a vice president and trade desk manager at Tuttle Decision Systems. Prior to that, he worked at C.F. Childs and Co. as a consultant. He holds a master’s degree in economics from the University of San Francisco.
Midanek/Pak Advisors, LLC will provide comprehensive investment, cash management and consulting to institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments and banks.