67 WALL STREET, New York - March 31, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains several in-depth interviews with highly experienced, professional Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Secular Growth Themes - Global Growth Equities - Dividend-Paying Stocks - Large-Cap Growth - Capital Appreciation - Basic Needs Investing - Investing in Stable Economies - Investing in the Swiss Market
Companies include: Tesoro Corporation (TSO), Chevron Corp. (CVX), Plum Creek Timber Co. Inc. (PCL), MeadWestvaco Corporation (MWV), Archer-Daniels-Midland Co. (ADM), Bunge Ltd. (BG), Unilever plc (UL), Packaging Corp. of America (PKG) and many others,
In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses her investment methodology and current top picks for investors:
TWST: Could you give us an overview of the Capital Innovations Global Agri, Timber and Infrastructure Fund and its investment philosophy?
Ms. Dambekaln: The Capital Innovations Global Agribusiness, Timber, Infrastructure Fund is an open-end mutual fund investing in the securities of global agribusiness, timber and infrastructure-related companies. The Fund seeks to invest at least 80% of its net assets in a diversified portfolio of 60 to 80 companies in both developed and emerging markets whose main operations are focused in the agribusiness, timber and infrastructure industries. These companies provide goods and services that are essential to everyday life, such as food, shelter, water treatment, transportation, energy and communication services.
As such, the demand for these goods and services is likely to remain stable despite economic cycles and a potentially limited resource base available to produce these products. The fund seeks to identify companies within these industries that are best positioned to capitalize on these sectors' fundamental strengths, and also seeks to provide investors with an income-generating portfolio through exposure to essential real assets.
TWST: Can you discuss some of your holdings and how they best exemplify your fund's investment philosophy?
Ms. Dambekaln: Let's take a look at holdings from each focus of the fund's philosophy: infrastructure, timber and agriculture. Within infrastructure, Tesoro Logistics LP (TLLP) engages in the ownership, operation, development and acquisition of logistics assets related to crude oil and refined products in the United States. Tesoro Logistics has been growing rapidly from successive dropdowns and acquisitions. Recently it acquired the Los Angeles logistics assets from Tesoro Corporation (TSO) and the Northwest Products System from Chevron (CVX). With the contribution and optimization from the assets acquired through acquisitions and dropdowns, we believe Tesoro Logistics could continue to increase its distributions by around 20% in 2014 as further organic growth opportunities support above-average distribution growth.
Moving to timber, Plum Creek Timber Company, Inc. (PCL) is a publicly owned real estate investment trust, REIT, which is the largest private landowner in the U.S., managing 6.7 million acres of timberland. The company offers exposure to Northwest timberlands driven by an export market that has been surging, but also exposure to Southern timberlands driven by domestic recovery in housing. The company recently acquired forestlands from MeadwestVaco Corporation (MWV), totaling 501,000 acres. Plum Creek expects to expand their total harvest 15% to 20% in 2014 due to this acquisition.
Finally, agribusiness, Solazyme, Inc. (SZYM) produces and sells renewable oils and bioproducts for fuels, nutrition and personal care markets. Its proprietary technology transforms a range of plant-based sugars into oils. The company also produces specialty bioproducts from the protein, fiber and other compounds produced by microalgae. Solazyme has strategic collaborations with Archer-Daniels-Midland Company (ADM), Bunge (BG) and Unilever (UL). Solazyme's food ingredients, such as Algal flour, align with the increasing consumer demand for products that are more nutritious yet do not compromise on taste.
TWST: Can you give us a closer look at how you make your investment decisions? What is your process for adding a specific holding to the 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.
- Basic Materials Industry
- Tesoro Corporation