Long-Term Investing with a Focus on Fundamentals, Valuation and Catalysts: A Wall Street Transcript Interview with Francesca A. Smitherman, CFA, the Director of Equity Research at Regions Investment Management, Inc.

Wall Street Transcript

67 WALL STREET, New York - January 2, 2014 - The Wall Street Transcript has just published its current Investing Strategies 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: Small Cap Investing - Upside in Small-Cap Stocks - Contrarian Approach to Investing - Quality of Business - Investing in Tangible Assets - Value in Emerging Markets - Cash-Flow-Oriented Global Companies - Turnaround Situations in Small and Micro Caps

Companies include: High Quality Long Term Investments

In the following excerpt from the Investing Strategies Report, an experienced money manager discusses her methodology for picking the best stocks:

TWST: Please give us some history of Regions Investment Management.

Ms. Smitherman: Regions Investment Management, Inc., is a registered investment adviser, and we focus on helping our clients reach their long-term investment goals through actively managed, diversified high-quality portfolios. We offer both fixed income and equity management. We have two separate teams that work together, and we manage about $9 billion in assets.

TWST: As you said, you offer different strategies. Do you have a single overriding investment philosophy?

Ms. Smitherman: I'd say that our biggest over-riding philosophy that is carried across both the equity team and the fixed income team would be an emphasis on a long-term investment horizon. We focus on the long term when we are making our investment decisions. We tend to have relatively low turnover, and we focus on higher-quality names. We are primarily domestic as well, in terms of our focus.

TWST: You have a collaborative process. Can you talk about that a little bit?

Ms. Smitherman: In two separate ways we are collaborative. I briefly touched right at the beginning on the fact that the equity and the fixed income teams work together and attend one another's meetings. The fixed income team has industry and sector analysts, as does the equity team, but from time to time we will collaborate to make sure that we are seeing the same thing in a certain security. And of course, the decision-making process reflecting a stock often runs counter to the decision for selecting a bond. While we may be attracted to a generous share repurchase plan or a high dividend, that may be counter to a fixed income investment. We do not necessarily work together on selecting a specific security, but we certainly talk about the fundamentals of the company.

The second way we are collaborative is in our approach to equity portfolio management. There are no star managers here, as the analysts have all covered their sectors for many, many years. They know their sectors well, and we manage all of the portfolios with a team-centric focus in terms of what stocks are coming in and going out at any one time.

TWST: On the equity side you focus on the fundamentals when you are looking at selecting stocks. What are the most important parameters you consider when selecting a stock?

Ms. Smitherman: There are three important things that I always want to hear from the analysts when I am evaluating the stocks to buy or sell, and fundamentals is one of the three major things I want to hear about. Additionally I want to hear about valuation and about catalysts...

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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