What Effect Will Lower Natural Gas Prices Have on the Specialty Chemicals Space? An Expert Money Manager Shares One of His Top Chemicals Stock Picks and Discusses His Investment Strategy in this Exclusive Interview

Wall Street Transcript

67 WALL STREET, New York - August 21, 2013 - The Wall Street Transcript has just published its International Investing and Other Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Bottom-Up Stock Selection - Value Oriented Strategy - Value Investing - Deep Value - Exposure to Emerging Markets - High-Quality Companies, Value Investing - Investing in Asia - Longer-Term Investing - Asia Pacific Investment Theses - Investing in China - Equity Investing Strategies - China's Domestic Markets

Companies include: Starbucks Corp. (SBUX) and many more.

In the following excerpt from the International Investing and Other Strategies Report, an expert money manager discusses his portfolio-construction methodology and his investment philosophy:

TWST: As of June 30, one of your top holdings was Greencore Group. Would you tell us a little bit about that company?

Mr. Horn: Greencore (GNC.L) is an example of a portfolio company that has relatively lower volatility. At Polaris, we aim to hedge against downside risks and to improve the risk/return profile of the Fund. Greencore makes chilled foods, ready-to-eat meals and sandwich products that are primarily sold to large retail grocery stores in the U.K., like Tesco (TSCO.L), Marks & Spencer's (MKS.L) and Asda.

In the U.K., store brand goods comprise a high percentage of grocery store sales; in the U.S., such sales are still much less. Retailers who operate in Europe and the U.S. have sought to convince Greencore to enter the U.S. market to increase the percentage of sales dedicated to store brands. Greencore made a couple of acquisitions over the last year or two that gave them an entry into Starbucks (SBUX) and 7-Eleven accounts. This is a company that may expect to continue its dominance on the U.K., while growing its business in the U.S.

TWST: What about Methanex? Tell us about that company.

Mr. Horn: Methanex (MEOH) is the largest producer of methanol in the world. Methanol is produced from natural gas, which is itself a pretty clean fuel. When you produce methanol from it, it's a much cleaner fuel. Methanol is a precursor to adhesives and other chemical products, and is also used as a fuel additive and substitute. China is one of the fastest-growing users of methanol as a fuel substitute, as the country seeks to enhance environmental conditions. Methanol prices have tended to trend closely with oil prices, which have stayed stubbornly high.

Methanex builds methanol facilities where the low-cost natural gas is in some way stranded or cannot be used in the local economy. They have done that in Canada, Chile, New Zealand, and they have plants in Egypt, Trinidad and Tobago. At these plants...

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.

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