67 WALL STREET, New York - September 19, 2013 - The Wall Street Transcript has just published its Multicap Value Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - Large-Cap, Deep-Value - Value Oriented Strategy
Companies include: RidgeWorth International Equity I (STITX) and many others.
In the following excerpt from the Multicap Value Report, an experienced portfolio manager discusses his investing methodology and top international stock picks.
TWST: How would you describe your overall investment philosophy for the fund?
Mr. Deakins: We are contrarian investors or value investors. Our investment philosophy is to look for stocks that are trading on cheap metrics, either price to cash flow, price to book or p/e. Then we look for some kind of catalyst that is going to change the market's perception of that stock. Our style is value with a catalyst, but with an eye on a margin of safety.
We don't really buy stocks that have a lot of debt or are unprofitable; we call those stocks value traps. We focus more on deep-value stocks that have either improving trends or earnings surprises. We look for something that is changing and we think the market will rerate those stocks. Almost all of our stocks pay a dividend, so we also pay attention to dividend yield in our investment process.
We screen on the valuation metrics. We create a universe of cheap stocks and then we exclude the value traps by making sure...
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.