By MarketWatch Last Update: 12:49 PM ET Apr 30, 2007
BOSTON (MarketWatch) -- Don Hodges, manager of the Hodges Fund, says that focusing on fundamentals never leads investors astray, allowing them to avoid the headlines and the noise and focus on the business and the value in the current stock price. In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Hodges (HDPMX : Hodges Fund News , chart , profile , more Last: 28.85+0.18+0.63% 6:04pm 05/18/2007) said that he currently likes the looks of the fundamentals on Capstead Mortgage (CMO : capstead mtg corp Last: 10.47 +0.04 +0.38%) , U.S. Global Investors (GROW : US Global Investors Cl A Pfd Last: 20.91+0.30+1.46% Affiliated Managers Group (AMG : affiliated managers group Last: 121.94+0.99+0.82% and Tata Motors (TTM : tata mtrs ltd Last: 18.29+0.13+0.72%
He also described several companies -- including Coach (COH : coach inc Last: 47.96+0.06+0.13% and Middleby (MIDD : Middleby Corporation (The)Last: 123.32-1.57-1.26% as good companies, but bad stocks, due to recent jumps that have put the price point out of whack with the value of the business. In another interview from Jaffe's weekday radio program, Gregg Brewer, executive director of research at Value Line, recommended Dodge & Cox International (DODFX : Dodge & Cox Intl Stock Last: 48.34+0.38+0.79% noting that the fund has everything necessary to be a core, one-size-fits-all international holding.
I own HDPMX and I am not happy with its pewrformance over the last two years. I also belive investing on fundamentals and I do very well. But when you run a fund that charges as much as they do and underperforms VTI (which charges .08% in fees) then the fund manager should be ashamed of himself. In fact, if he is honest he should return his management fee because not only he did earn it but he cost me money!
Tomorrow I will be disposing of HDPMX and swapping with VTI. I do not care how well they might do going forward. I prefer not to do business with them. They can say whatever they want but they do not deserve my (or anybody else's) business.