67 WALL STREET, New York - October 15, 2013 - The Wall Street Transcript has just published its Investing Strategies Report offering in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Disciplined Growth Approach - Global Economy - Top-Down and Bottom-Up Investing - Bottom-Up Stock Selection - Value Oriented Strategy - Value Investing - Deep Value - Exposure to Emerging Markets
Companies include: Och-Ziff Capital Management Gr (OZM), Suncor Energy Inc. (SU) and many others.
In the following excerpt from the current Investing Strategies Report, an expert portfolio manager discusses his investment methodology and top stock picks for investors:
TWST: If you would start, just for new readers or to refresh existing readers' memory, start with a little bit of a history, value investment principles and an overview of your business today.
Mr. Mehta: We are a Hong Kong-based investment advisory firm, and we seek deep value or extraordinarily undervalued stocks on a global basis. We're quite diversified in our approach in terms of stocks from North America, Europe, Japan and Asia. We're pretty diversified by market cap as well as geography.
We find ideas everywhere, basically, and the performance has been very strong. We've had a bunch of recommendations where companies' cash on the balance sheet is greater than or equal to the market cap, so you get the underlying business essentially for free. Our average dividend yield for our stocks has ranged from 6% to 8%. And the beautiful thing is that two-thirds of our companies are growth companies, or at a minimum they're in growth industries, and one-third are clear industry leaders. These are quality companies that, for some reason or other, the stock prices are down, and that creates great risk/reward opportunities for us.
TWST: Is there anything you'd add in terms of your overall investment philosophy and strategy?
Mr. Mehta: Our time horizon is generally one year to two years or longer, so we're really looking for multibaggers. More than 25% of our recommendations have gone up over 50%. We're not buying a stock for next week's earnings report, but really for meaningful gain - 30%, 50% or higher gains going forward.
TWST: Do you start with a macro view on themes or sectors or countries, or are you strictly looking at stocks from a bottom-up perspective?
Mr. Mehta: We tend to look at it from a bottom-up perspective. All of our stocks have to have multiple deep-value criteria, multiple metrics, whether it's price to book, EV to EBITDA, dividend yield, price to earnings, things like that. Each and every stock has to have multiple parameters on which the stock is very, very cheap.
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.