67 WALL STREET, New York - December 2, 2013 - 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: Investment Risk Management Strategies - High-Quality Blue-Chip Companies - Free Cash Flow Yield - Alternative Investing, Ultimate Returns
Companies include: Hatteras Funds
In the following excerpt from the current Investing Strategies Report, an experienced portfolio manager discusses two out-performing funds from the Hatteras family of investment vehicles:
TWST: Within these funds, what type of investment strategies are you looking for or most interested in given the current market environment?
Mr. Murphy: We are continuing to follow some of our broad themes from the beginning of the year. In general, we believe the environment continues to be accommodative for increased corporate activity, as evidenced particularly by event-driven special situations strategies. Companies continue to have strong balance sheets, debt financing is still available, equity valuations are historically reasonable, and the opportunities for intrinsic growth seem to be limited.
We believe one of the only ways remaining for companies to create value for shareholders is corporate activity, including extraordinary share buybacks, extraordinary dividends and merger activity. In fact, activist-type strategies have led the way for most of the year, and we have been "overweight" our event-driven strategies.
We are maintaining a "neutral weight" to long/short debt within the Hatteras Alpha Hedged Strategies Fund. However, if you are looking for a fixed income alternative, then we suggest being "overweight" long/short debt. We believe it could outperform fixed income as an asset class, due to duration management, the flexibility to go long or short, and its ability to generate returns through fixed income arbitrage and relative value trading strategies. If your goal is to shorten your fixed income duration because of an asymmetric risk associated with long-only bonds, then clearly a long/short debt solution makes sense.
TWST: What are the key characteristics that you look for when choosing fund managers?
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.