Contrarian Approach to Investing Brings Profitability to Value Investors
67 WALL STREET, New York - February 21, 2013 - The Wall Street Transcript has just published its Investing Strategies Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Value Investing - Long-Term Investing - Longer-Term Investing - All-Cap Growth Investing - Bottom-up Investing - Global Investing - Emerging Market Growth Dynamics - High Quality Companies - Investment Strategies - Investing in Emerging Markets
Companies include: Apple Inc. (AAPL), MetLife, Inc. (MET), Herbalife Ltd. (HLF) and many more.
In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses his portfolio-construction strategy and investment philosophy.
TWST: Did you use to tend to buy and hold more than you do now?
Mr. Lehrer: There was a greater stability to the market and you could think of holding things for the longer term. That wasn't necessarily true of every stock, but on balance that was true. If you look at the recent volatility in Apple and Herbalife (HLF), you can see that these things have become highly volatile.
TWST: Alpha Cubed offers a number of programs to investors, based on risk levels and such. Are you involved in developing those?
Mr. Lehrer: Alpha Cubed had those programs in place when I sold Lehrer Management. My philosophy was always that we tell the individual investor what to do; we didn't ask them. Alpha Cubed chooses to engage and discuss risk levels with the individuals more than Lehrer did. Alpha Cubed ultimately arrives at the same conclusion, but they do it in a more consultative way. The clients we transferred continue to experience the same investment philosophy.
Alpha Cubed offers several investment programs, and they are highly flexible, which can be a good thing. They do have an element in which they manage in accordance with the way we managed things at Lehrer Management Company.
Most advisers will ask people, "What's your risk profile?" I don't think most people really understand what their risk profile is, and I don't think they understand the risks in the market. I never ask, and we never did for 33 years at Lehrer Management Company, but I do understand that Alpha Cubed is interested in discussing risk with investors to better educate them, which is something we did not emphasize in the past...
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.
