Buying Great Companies and Investing for the Long Term: A Wall Street Transcript Interview with Mark Pearson, Founder, President and Chief Investment Officer of Nepsis Capital Management, Inc.
67 WALL STREET, New York - April 24, 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: Visa, Inc. (V), Mastercard Incorporated (MA), Baidu, Inc. (BIDU), Citigroup, Inc. (C), Bank of America Corporation (BAC), Under Armour, Inc. (UA), AllianceBernstein Holding L.P. (AB), Ctrip.com International Ltd. (CTRP), E-House (China) Holdings Limited (EJ), Boston Beer Co. Inc. (SAM), Diageo plc (DEO), Medtronic, Inc. (MDT), Johnson & Johnson (JNJ), Celgene Corporation (CELG), Aetna Inc. (AET) and many others.
In the following excerpt from the Investing Strategies Report, an experienced money manager discusses his investing methodology and top picks for investors:
TWST: Can you give us an overview of Nepsis Capital Management, and your investment philosophy and strategy?
Mr. Pearson: Nepsis Capital in one form or another has been around for about 20 years. Currently, we have approximately $400 million of assets under management. We are primarily what you would call an SMA firm. We actually have three different groups. We have the SMA group - which is the third-party money-management aspect - the advisory-services side and the retirement-plans side. Nepsis Retirement Services provides 401(k) plans with the SMA for money management, utilizing the Nepsis Capital philosophy and strategy. We primarily work through third-party advisers or firms in our asset management.
We focus very heavily on our message as it pertains to our investment philosophy and strategy. Of course, Nepsis - which is a Greek word that has to do with clarity - becomes the foundation of our philosophy and strategy of getting ultimate clarity in your investing. We are a bit of what we would call mavericks or renegades in the business. We are not a firm that publishes returns. We don't talk about returns, and we don't benchmark. We believe that benchmarking and focusing on returns are historical things, and we focus on the message of buying great businesses. A lot like the Warren Buffett school of thought, if you will, buy great businesses and look forward to market volatility to continue to buy into great companies over time.
What type of companies? We prefer companies that have dividends, although it doesn't mean that all our companies have dividends. Our investment philosophy and strategy dictates that we want to own no more than 35 companies in our portfolios. And when we allocate to a position within the portfolio, we want to make sure that we allocate no more than 5% of a client's assets in any one position to, of course, reduce risks.
People would categorize us as an all-cap global manager. We look for companies around the world. We don't care if they are small-cap, mid-cap or large-cap. We are agnostic to what part of the world they are in. We believe that the fundamental key to successful investing is about buying great companies, owning those companies over time and continually investing in those companies when volatility allows you to buy more of it when it is on sale. That is the 30,000-foot quick overview.
TWST: Can you flesh out that description by discussing some of your top holdings that exemplify this strategy?
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.
