Investing in Companies Self-Sustained from a Cash Flow Standpoint: Senior Portfolio Manager Charles G. Pohl Discusses His Value Strategy with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - April 19, 2013 - The Wall Street Transcript has just published its Investing in Energy, MLPs and Other Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Portfolio Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Value Investing, Long-Term Investing, High Quality Companies, Investment Strategies, Large Cap Investing, Investing in Energy, Oil and Gas

Companies include: Cardinal Financial Corp. (CFNL), Community Bank System Inc. (CBU), Esterline Technologies Corp. (ESL), Kaman Corp. (KAMN), Hub Group Inc. (HUBG), Atlas Air Worldwide Holdings I (AAWW), Alaska Air Group Inc. (ALK), inContact, Inc. (SAAS), Exterran Holdings, Inc. (EXH), International Business Machine (IBM), Oracle Corp. (ORCL), Johnson Controls Inc. (JCI) and many more.

In the following excerpt from the Investing in Energy, MLPs and Other Strategies Report, a portfolio manager discusses his investment philosophy and his portfolio-construction strategy:

TWST: What are the two or three best reasons a long-term investor should take a close look at Anchor and your Small-Cap Value Strategy?

Mr. Pohl: If you look at the performance of various asset classes over long periods, the small-cap and small/midcap value are tops in terms of absolute performance. A more nuanced observation about our process, as I mentioned, is that we have been told by third parties that given our low turnover and deep fundamental focus, we are almost private-equity-like in the public market space. The reason for that is, as we discussed, our turnover is remarkably low for a small-cap manager, but in fact one validation of our process has been the number of strategic takeovers that have occurred in the portfolio, which can be compared to liquidity events for private equity investors, are disproportionately high.

To wit, of the 65 to 70 takeovers that we've had out of our portfolio, a high number of those have been taken over by sophisticated buyers, such as IBM (IBM) and Oracle (ORCL) on multiple occasions, Johnson Controls (JCI), Norsk Hydro (NHY.OL), Bayer (BAYN.DE), and various private equity buyers. That prompts us to conclude that we do a fairly good job of sniffing out some of the strategically relevant entities before the strategic buyers do, which justifies having exposure to our process.

TWST: Is there anything else you wanted to touch on, anything else investors should know about the strategy?

Mr. Pohl: We are in the midst of a comprehensive marketing effort, which really hadn't begun until the last 12 months. In a capacity-constrained arena, that has significance for a lot of people. We are open for business...

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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