Investing in U.S. Large Caps and Less-Known International Companies the Focus of this Portfolio Manager's Investment Strategy: Joshua B. Stewart of Wasatch Advisors Shares His Philosophy with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - August 21, 2013 - The Wall Street Transcript has just published its International Investing 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 public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Bottom-Up Stock Selection - Value Oriented Strategy - Value Investing - Deep Value - Exposure to Emerging Markets - High-Quality Companies, Value Investing - Investing in Asia - Longer-Term Investing - Asia Pacific Investment Theses - Investing in China - Equity Investing Strategies - China's Domestic Markets

Companies include: Apple Inc. (AAPL), Netflix, Inc. (NFLX), Amazon.com Inc. (AMZN) and many more.

In the following excerpt from the International Investing and Other Strategies Report, an expert analyst discusses the outlook for the sector for investors:

TWST: How do you define innovation and what is your process for selecting these companies? A lot of companies say they are innovative, but don't find their way into your fund.

Mr. Stewart: We struggled over the name, and there were strong arguments on both sides for whether or not to include the term "innovators" since, as you said, it's ambiguous. Every company in the world has the word innovation on its website somewhere. The best way to think of this for us comes back to the idea of gaining market share, and seeing that it is about the ability to consistently gain market share.

A lot of companies have one hot product, but then can't repeat that success. We don't want to try and play that. A lot of chip companies will have a chip that gets into the iPhone, for example, and they do very well until Apple decides that it wants to go with the cheaper supplier and fires them, and suddenly they are left with nothing.

So we focus on real reasons that we believe a company can take market share for a long period of time. During the financial crisis, you could pull up very simple screens that showed who grew through the economic downturn and who did not. In general, the ability to grow through the financial crisis was a really good way to screen for the types of innovative companies we find attractive.

TWST: As of March 31, Apple was one of your top holdings. Some would argue that Apple is not the innovator it used to be. Why do you still like Apple?

Mr. Stewart: Apple is a hot topic always. We comanage the fund and run separate tranches. I do 40% of the fund, Sam does 60%. I will tell you, currently in my tranche I don't own Apple, but he does. I used to own Apple. We owned it together for most...

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.

Rates

View Comments (0)