Investing with The Weight of The Evidence: Becker Capital Management Portfolio Managers Discusses Their Top Holdings and Investment Methodology

Wall Street Transcript

67 WALL STREET, New York - March 5, 2013 - The Wall Street Transcript has just published its Large Cap Value 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 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 - Bottom-up Investing - Global Investing - High Quality Companies - Investment Strategies - Large Cap Investing

Companies include: Coach Inc. (COH), Kohl's Corp. (KSS), Honda Motor Co. Ltd. (HMC), PPG Industries Inc. (PPG), Symantec Corporation (SYMC), ConAgra Foods, Inc. (CAG) and many more.

In the following excerpt from the Large Cap Value Report, two expert portfolio managers discuss their portfolio-construction methodology and their investment philosphy, and they share of their top picks.

TWST: What are some of the new names in the portfolio and why have you added them?

Ms. Kessler: We have added several new stocks in the last couple of quarters. There are a couple in the consumer discretionary space; Coach (COH), which has traditionally been a beloved growth name selling at a premium valuation multiple to the market and often to the retailers in general is one. Coach had a series of missteps, which we think are short-term in nature. Following a difficult fourth quarter, the stock is now trading at about 13 times earnings and an enterprise value of EBITDA of 8.5 times, which is in the lower quartile of its valuation range over the last 10 years. It has a decent dividend yield at 2.5%.

In February, we replaced Target (TGT) with Kohl's (KSS). The p/e ratio on Target had expanded to about 14 times versus Kohl's at 10 times. Kohl's has very high sales per square foot, has new management in place and is yielding close to 3%. We believe it represents a solid value over the next few years.

TWST: What makes you sell a holding in the portfolio?

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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