Forecasting Value & Growth Opportunities: A 2013 Wall Street Transcript Top 10 Interview with Donald W. Hodges, Award Winning Money Manager with 50 Years of Portfolio Management Experience

Wall Street Transcript

67 WALL STREET, New York - December 11, 2013 - The Wall Street Transcript has just published its Top Ten Portfolio Manager Interviews of 2013 Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Portfolio Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Top Ten Portfolio Manager Interviews of 2013

Companies include: Contrarian and Contrarian Blue Chip Stock Picks

In the following excerpt from the Top Ten Portfolio Manager Interviews of 2013 Report, an experienced money manager discusses his methodology for picking high return, low risk stocks for investors:

TWST: Please provide us with a brief history of Hodges Capital Management.

Mr. Hodges: The history of Hodges Capital Management, in a way, is an extension of my history in the business. I started in the investment business in 1960 as a retail broker with Merrill Lynch in Oklahoma City. I left Merrill in 1968, came to Dallas and was involved with a small brokerage firm here in Dallas, which later went out of business in the difficult years of 1968, 1969 and 1970. Then I joined Rauscher Pierce, which was a regional retail brokerage firm, and was there about 15 years. I eventually became the President of Rauscher.

My son Craig and I started First Dallas Securities in 1989. Then in 1992, we started our first mutual fund, the Hodges Fund (HDPMX), a multicap "go-anywhere" fund. In 2007, we started a Small Cap fund (HDPSX), because the small-cap portion of our multicap fund was the best-performing part of that fund. We started our small-cap fund almost on a market high in December 2007. As you know, we have had good numbers. It's among the top-rated small-cap funds. We've just completed our five years on December 18.

In September 2009, we started three other highly specific funds: an Equity Income fund (HDPEX), where we invest for income and appreciation; a Blue Chip 25 fund (HDPBX), where we invest in 25 large blue-chip stocks; and then we launched a Pure Contrarian fund (HDPCX), where we only buy things that are out of favor but where we think there is exceptional opportunity for recovery. That is a description of the history and focus of our mutual fund universe.

TWST: You highlighted some of the different funds and strategies. How would you describe your overall investing philosophy?

Mr. Hodges: Clearly, we are bottom up, where our obsession and passion is individual companies...

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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