67 WALL STREET, New York - May 1, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced, professional Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Small Cap Investing - Value Investment - Investment Risk Management Strategies - Long-Term Investing - High-Quality Companies - Investing in Agriculture - International Microcap Investing - Low-Volatility Investing
Companies include: Monsanto Co. (MON), CF Industries Holdings, Inc. (CF), Potash Corp. of Saskatchewan, (POT), Mosaic Co. (MOS), Syngenta AG (SYT), Tyson Foods Inc. (TSN), Sanderson Farms Inc. (SAFM), Archer-Daniels-Midland Co. (ADM), Deere & Co. (DE), AGCO Corp. (AGCO), McDonald's Corp. (MCD), EI DuPont de Nemours & Co. (DD), Yum! Brands Inc. (YUM) and many others.
In the following excerpt from the Investing Strategies Report, an experienced portfolio manager specializing in the global agricultural value chain discusses his investing methodology and current top stock picks for investors:
TWST: Can you give us an overview of Allianz Global Agricultural Trends' philosophy and strategy?
Mr. Agbabian: First of all, it launched in April 2008. The universe that we invest in encompasses the entire value chain for agriculture. We look at companies that are involved in agricultural production. Those are input providers such as fertilizer, seed, farm equipment and companies that actually produce agricultural commodities. Those companies tend to be more sensitive to changes in agricultural commodity prices, so in a rising agricultural commodity price environment, those companies have a good chance or a good potential to do well. We call those upstream companies.
The other side of the agricultural value chain is the processing and distribution companies, companies that benefit from greater volume of agricultural commodities and also falling agricultural commodity prices. So we invest along the value chain. We look at the agricultural commodity environment to have an idea of how to position the portfolio from favoring more of the upstream portion of the value chain or the downstream portion of the value chain.
This positioning has changed over time, as we've had a period of time where we had more of a shortage of agricultural commodities, such as in 2012, when we had a severe drought in the United States. We then favored more of the upstream names.
Over the past nine months or so we've been favoring more of the downstream companies, because we've been more in a crop production recovery period. So we've been investing more on the processing and distribution side. That's just an overview of the strategy. We look top down, but we also look bottom up because we want to own those companies that are best positioned. We do both in this strategy.
TWST: Does this upstream/downstream philosophy create its own protection from the volatility in food prices and other prices in the value chain?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry