67 WALL STREET, New York - January 22, 2014 - The Wall Street Transcript has just published its current Value Investing and Other 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 - Value Oriented Strategy - High-Quality Companies - Upside in Small-Cap Stocks - Bottom-Up Stock Selection - Portfolio Diversification with Closed-End Mutual Funds - High-Grade Fixed Income Securities - Sector Rotation Investing
Companies include: Small Cap Value Stocks
In the following excerpt from the Value Investing and Other Strategies Report, an expert value stock portfolio manager discusses his methodology and top picks:
TWST: Can you please give us a brief history of Elessar Small Cap Value Fund and an overview of the key points that guide its investment philosophy?
Mr. Elan: We formed Elessar at the end of 2005, and we launched a small-cap value product on April 1, 2006. The four principals of the firm worked together at National City. Rick Giesen, Chris Staneluis and I are the members of the investment team, and Mitch Krahe is responsible for operations, compliance and legal. It is a little bit unusual for a firm of our size to have someone with Mitch's background and expertise in-house. Usually small investment firms outsource their legal and compliance needs. We set this firm up to be institutional-quality from day one. Currently, most of our business is institutional accounts, but we expect the mix to change going forward as more investors purchase our mutual fund, which we launched in October 2012.
Our investment mandate is to own companies that have been growing their business over the past three to five years in tandem with management being good stewards of capital. This means investing into high-quality companies that produce prodigious amounts of free cash flow, which in turn is used to invest into new growth opportunities. These investments represent catalysts that will serve to increase shareholder value in the next 12 to 18 months.
All of us here at Elessar have a shared passion for small-cap investing that has been finely honed over decades of experience. We like the small-cap investment space due to the relative inefficiencies of this asset class, because they are generally underowned and underfollowed by Wall Street. Our passion and dedication to this type of product has translated to top-decile performance since inception of the product, and being recognized by large public institutions such as Ohio Public Employees Retirement System, which is our largest client. We also see good traction for our small-cap value mutual fund, launched over a year ago.
TWST: How would you define a quality small-cap company that meets the requirements for inclusion to your 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.