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The Florida Pension Fund Managers Who've Beaten the S&P 500 Over 50 Years

rforno
in Other Investing
(my kind of investing ... and why I went into my state's 403(b) versus the state pension system.)

The Florida Pension Fund Managers Who've Beaten the S&P 500 Over 50 Years

Unlike most other US public retirement plans of its size, the Tampa Fire & Police Pension Fund doesn’t invest in hedge funds, private equity or private credit. It doesn’t hire consultants to help it pick outside managers. Instead, for the past 50 years, its investments in stocks and bonds have been overseen by a single manager, Bowen, Hanes & Co., a nine-person firm led by Harold “Jay” Bowen III. In short, Tampa and Bowen Hanes do one thing, and the rest of the institutional world does something else.

Consider the Tampa fund’s performance, though. It racked up a 32.2% return in the fiscal year ended in September. “Fiscal 2024 was—not only was it our 50th year, it was the best year the plan’s ever had,” says Bowen, 63. The return was good enough to rank the Tampa plan as the best performer for the period in the Wilshire Trust Universe Comparison Service’s database of plans with more than $1 billion in assets under management. Tampa was also No. 1 for 3, 5, 10, 15, 20, 25, 30, 35 and 40 years.

When the firm started by Bowen’s father began managing the Tampa Fire & Police pension in 1974, the plan had $12.1 million in assets. Fifty years later, in September 2024, the plan’s assets totaled $3.2 billion. What’s more, net of contributions, the system had paid out $1.8 billion to retirees. That means by investing in stocks and bonds, Bowen Hanes had in effect turned $12 million into almost $5 billion over 50 years.

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Full archive link: https://archive.ph/3nTUd

Fund holdings as of September 2024: https://www.tampa.gov/document/september-30-2024-fiscal-year-financial-statements-115286

Comments

  • beebee
    Thanks @rforno,

    Very interesting story and great document to review from an allocation standpoint point also from individual security standpoint.

    Does this statement report (publish) monthly?
  • rforno
    bee said:

    Thanks @rforno,

    Very interesting story and great document to review from an allocation standpoint point also from individual security standpoint.

    Does this statement report (publish) monthly?

    Dunno. I think it was their quarterly report.
  • MikeM2
    edited June 13
    About 77% equities. I read about these guys over 15yrs ago. Then I ran into a recently retired Tampa Fireman/Paramedic; he was SUPER happy about their management.
  • beebee
    edited June 13
    This is what I came up with for AA.
    https://app.screencast.com/focrQYzX5b271


    There is a category called "ventures" which would be interesting to better understand.

    List of Ventures:
    https://app.screencast.com/tARS7gSpS6usi
  • rforno
    bee said:

    This is what I came up with for AA.
    https://app.screencast.com/focrQYzX5b271


    There is a category called "ventures" which would be interesting to better understand.

    List of Ventures:
    https://app.screencast.com/tARS7gSpS6usi

    FWIW saying I am big into 3 of those 'ventures' in my long-long term portfolio. Great minds think alike, I guess. :)
  • DrVenture
    A quick look reveals about 78% equity and lots of corporate bonds. I have had similar results, decades of beating the S&P, with a similar allocation and heavy growth emphasis. Just riding out the volatility.
  • rforno
    DrVenture said:

    A quick look reveals about 78% equity and lots of corporate bonds. I have had similar results, decades of beating the S&P, with a similar allocation and heavy growth emphasis. Just riding out the volatility.

    That's pretty much how I am positioned,albeit mostly in equities and the only bonds being in my few allocation funds. I really like that their corporate bonds were mostly, if not entirely, in major 'known name' companies and not fly-by-night smallcap / startup / cryptic-sounding entities, too.
  • DrVenture
    Very good points.
  • DrVenture
    edited June 14
    rforno said:

    bee said:

    This is what I came up with for AA.
    https://app.screencast.com/focrQYzX5b271


    There is a category called "ventures" which would be interesting to better understand.

    List of Ventures:
    https://app.screencast.com/tARS7gSpS6usi

    FWIW saying I am big into 3 of those 'ventures' in my long-long term portfolio. Great minds think alike, I guess. :)
    @rforno Lemme guess: EPP, WELL and AMT?

  • shipwreckedandalone
    edited June 14
    Youtube interview: How to beat the market over 50 years w/ Jay Bowen
  • rforno
    edited June 14
    DrVenture said:

    rforno said:

    bee said:

    This is what I came up with for AA.
    https://app.screencast.com/focrQYzX5b271


    There is a category called "ventures" which would be interesting to better understand.

    List of Ventures:
    https://app.screencast.com/tARS7gSpS6usi

    FWIW saying I am big into 3 of those 'ventures' in my long-long term portfolio. Great minds think alike, I guess. :)
    @rforno Lemme guess: EPP, WELL and AMT?

    Close! BIP. BEP, and EPD (the latter in *very* large size)
  • DrVenture
    edited June 14
    Oh yeah, that was a typo, meant EPD. I've got EPD. I had it in my 401k SDB until they decided it was not allowed. I still have it in a taxable account. Not a huge fan of K-1s, but no biggie.

    Clearly, you are fan of mid-stream partnerships. Not a bad idea.
  • rforno
    DrVenture said:

    Oh yeah, that was a typo, meant EPD. I've got EPD. I had it in my 401k SDB until they decided it was not allowed. I still have it in a taxable account. Not a huge fan of K-1s, but no biggie.

    Clearly, you are fan of mid-stream partnerships. Not a bad idea.

    Yup. I own EPD, WMB, and WES. Others come and go, but those are keepers.
  • MikeW
    Thanks so much for sharing this @rforno… really interesting. I’m assuming there is no way to invest with these folks right ?
  • stayCalm
    So no contributions into the fund after the $12M mark?
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