67 WALL STREET, New York - November 13, 2013 - The Wall Street Transcript has just published its current Investing Strategies Report. This special feature contains expert investment methodology commentary through in-depth interviews with professional Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Large-Cap, Deep-Value - Disciplined Growth Approach - Bottom-Up Stock Selection - Investing in Financial Services - Index-Only Investing - Corporate Restructuring - Repurchase Activity - Tax-Efficient Investing
Companies include: GlaxoSmithKline plc (GSK), Chow Sang Sang (0116:HK), Famous Brands (FBR:Johannesburg), McDonald's Corp. (MCD), Starbucks Corp. (SBUX), Yum! Brands Inc. (YUM), Tiffany & Co. (TIF), Time Warner Cable Inc. (TWC), Vodafone Group plc (VOD), Activision Blizzard, Inc. (ATVI) and many others.
In the following excerpt from the Investing Strategies Report, an experienced portfolio management team discuss their metholodogy for value investing in emerging and international markets:
TWST: If you would, please tell our readers about your firm with a bit of history and an overview of your business.
Ms. Larsson: We started Pendo LLC in 2007. We're an independent registered investment adviser operating out of New York. We're long-term value investors with an expertise and specialization in international equities.
TWST: Please tell us more about the investment strategy you focus on.
Ms. Larsson: We take a traditional Graham and Dodd long-term value approach, meaning that we try to buy equities that we find undervalued in comparison to the intrinsic value of the underlying companies. Our investment time frame is typically three to five years for any individual security. We look for companies with a competitive advantage, a proven track record of compounding earnings and expanding margins, along with solid management.
Mr. Foley: We look for an entry position where the stock is generally either distressed, misunderstood or somehow misjudged for whatever reason, and that gives us a margin of safety. The price of a stock is basically a scorecard, and a person who owns their own company doesn't need to look at a scorecard to know if his business is making money or not.
We look at the company that way, as if we were the actual business owners, and if it meets our investment criteria and trades at a discount to where we think it should be, that's where we'll step in.
TWST: Then you clearly take a bottom-up approach, but are there any bigger picture themes or trends that you're following, or that you're noticing in terms of your stock selections?
Ms. Larsson: You're right, we are bottom-up, fundamental investors, but the bigger picture is that we try to invest in companies where we find opportunities in economies that also have a growth component to them. Currently we're heavily weighted in emerging markets...
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.