Estimating Long-Term Intrinsic Value: A Wall Street Transcript Interview with Anthony P. Coniaris, CFA, a Co-Manager of the Oakmark Select Fund

Wall Street Transcript

67 WALL STREET, New York - January 8, 2014 - The Wall Street Transcript has just published its Value Investing and Other Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Small Cap Investing - Contrarian Approach to Investing - Quality of Business - Value Oriented Strategy - High-Quality Companies - Long-Term Intrinsic Value - Asset-Heavy Companies - Multicap Contrarian Investing

Companies include: TRW Automotive Holdings Corp. (TRW), Tyco Electronics, Ltd. (TEL), Newfield Exploration Co. (NFX) and many others.

In the following excerpt from the current Value Investing and Other Strategies Report, an experienced portfolio manager discusses his methodology and top picks for 2014 for investors:

TWST: Could you please give us an overview of Oakmark Select?

Mr. Coniaris: Oakmark Select is a focused mutual fund that typically holds 20 U.S.-based securities, which implements the value philosophy of Harris Associates. As of September 30, 2013, the fund had $4.0 billion in assets under management. We invest in businesses that are trading at significant discounts to intrinsic value, where there is a clear path to that value growing on a per share basis over time, and that are operated by shareholder-oriented management teams. Our team of generalist research analysts uses an intensive, fundamental research process to implement our value philosophy. The fund is focused to allow our best ideas to have a meaningful impact on performance.

TWST: It looks like you had a very strong year with over a 32% return year to date. From your perspective, what factors supported this enviable performance?

Mr. Coniaris: We have to be careful looking at absolute returns in any given year. The market had a fabulous year, and is up roughly 27%. Now, obviously we are very happy to do better than the market. Relatively speaking, we outperformed because of strong stock selection - as we discussed in the last quarter's letter - as well as from an allocation to more economically sensitive industries. The latter was not some master macro plan, but rather the outcome of our detailed, bottom-up process of estimating business value. We just happened to find the most value in more economically sensitive names in sectors such as financials, industrials and consumer discretionary.

TWST: Looking back over the past year, which sectors or companies outperformed in recent quarters? Did you have any upside surprises and which, if any, disappointed?

Mr. Coniaris: The largest contributors to our performance over the last year were some of the more economically sensitive names in the portfolio...

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.

Rates

View Comments (1)