67 WALL STREET, New York - December 12, 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 Money 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: Long Term Natural Gas Related and Quality Large Cap Investing
In the following excerpt from the Top Ten Portfolio Manager Interviews of 2013 Report, an experienced hedge fund investor makes the gas for being a long term U.S. stock market bull:
TWST: Would you give us a snapshot of the various funds the firm manages?
Mr. Mausner: We have one strategy only. We have offshore and domestic and that kind of thing for tax reasons, but our philosophy and discipline is just one discipline, and that is long/short, focusing on the growth areas of the domestic economy. We focus just on U.S. stocks. The sectors that we focus mostly on are technology, health care, financial services and consumer nondurables.
TWST: Is there anything you'd add in terms of your investment strategy or philosophy?
Mr. Mausner: We are very sensitive to valuation. We definitely have a bottom-up approach in that we do deep research on individual companies, but we layer on top of that an overall macro view. We always have an opinion on the overall environment, and that guides us on whether or not we'll be fully invested - and more long or more short.
Fortunately, for the last year and a half to two years we've been very, very bullish. We never believed that the euro crisis was a real one; we thought it was more fabricated and blown out of proportion by the press. Even this most recent Cyprus fiasco - we just don't believe that it's very real. Whereas the underlying fundamentals in the United States are as positive, in our opinion, as they've been since the early 1980s, including - as part of that overall story - the emerging U.S. energy independence, which is arguably the most significant economic development of our lifetimes because it has such implications for government spending, for geopolitical relations, for our strategy overseas; whether or not we would get involved in an Iraq or an Afghanistan given that we are truly becoming energy independent much, much faster than even the most optimistic forecasts had predicted.
That, combined with extremely low interest rates, with very reasonable valuations, with increasing dividends, with increasing mergers and acquisitions, with increasing stock buybacks and the best corporate balance sheets that we've seen in our lifetimes, and significant underinvestment on the part of both institutions and individuals and a healthy dose of skepticism everywhere - it's really almost as good an environment as you can imagine, in our opinion. We see the next five or 10 years as being perhaps another "golden era" for the United States. The thing we probably like the most about that is we're in a real minority, a very, very small minority of people that have such a positive outlook at this point in time.
TWST: To what extent, then, are you incorporating energy-related investments in your funds and portfolios?
Mr. Mausner: The main focus that we have energywise is on natural gas, and the reason for that is that it's at 25-year lows. It has bounced recently about 50%, 60%, but it's come down very, very dramatically because technology has enabled vast discoveries of natural gas both here and abroad. The supply exploded over the last couple of years, and even though demand also increased, it didn't keep track at all with supply, and so the price got absolutely annihilated.
We think now is an extremely attractive time. We think the time horizon's anywhere from two years to five years, because it does take a while for people to convert, whether it be vehicles or homes or trucks or railroads. But the conversion is happening, because gas is so much cheaper than oil, number one; number two, it's much, much more clean-burning; and number three, we have the largest reserves in the world in the United States. Those are three very compelling reasons for both companies and individuals to make that conversion, and it's happening...
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.