Expansion of Russian and Chinese Empires Creates Investing Opportunities for this Money Manager: A Wall Street Transcript Interview with Montague Guild, Chief Investment Officer and Founder of Guild Investment Management

Wall Street Transcript

67 WALL STREET, New York - April 16, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains expert investment advisory 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: Dividend-Paying Stocks - Capital Appreciation - Small Cap Investing - Upside in Small-Cap Stocks - Investing Through Construction Trends - Dividend-Paying Small Caps - MLP Investing - Global Macro Trends

Companies include: CVS Caremark Corporation (CVS), Walgreen Co. (WAG), Rite Aid Corp. (RAD), EOG Resources, Inc. (EOG), Continental Resources Inc. (CLR), Whiting Petroleum Corp. (WLL), Goldcorp Inc. (GG), Agnico-Eagle Mines Ltd. (AEM), Google Inc. (GOOG), Priceline.com Inc. (PCLN), IntercontinentalExchange, Inc. (ICE), American Express Company (AXP), Visa, Inc. (V), Las Vegas Sands Corp. (LVS), Walt Disney Co. (DIS) and many others.

In the following excerpt from the Investing Strategies Report, an experienced money manager who has run his own fund since 1971 discusses his methodology, global outlook, and current top stock picks for investors:

TWST: You mentioned ETFs. I was interested in your view of exchange-traded funds. What role does that play in your portfolio and in your strategy?

Mr. Guild: Well, there are exchange-traded funds of several kinds, but some are very impractical to use because they cost so much and their portfolios have to be adjusted every night. Those are not attractive. Others are attractive. For our aggressive portfolios we have been short China and Russia - we are right in the middle of the Russian crises and we've made good money in the aggressive 3X short Russia ETF (RUSS). We don't trade those for most clients, just for our very aggressive clients.

We believe ETFs have a place, but you have to look at them individually. You can't generalize, because some of them are so expensive and so frequently re-priced that you can't really make any money on them unless the commodity or stocks underlying it move radically. Others are more reasonably priced and more reasonably valued. So it's a case-by-case situation.

TWST: What was your most difficult decision in the last year?

Mr. Guild: My most difficult decision in the last year was made just recently, where we had to reduce exposure to stocks - although they are reasonably priced; although corporate profits are going to rise 9% this year; although GDP growth including inflation is going to be over 4% in the United States this year, which most people don't agree with, but we think is fairly assured.

In spite of that, we had to cut back our stock exposure in the last few weeks because of the crises in the Ukraine, which most people are complacent about. We are not complacent about it. We've shorted Russia, we've shorted China, and we've bought VIX because of our concern about the crises in Ukraine. Further, we have sold some stocks to create cash, to have money available to buy when the bottom of the crises comes...

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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