A Different Approach to Deep-Value Investing: A Wall Street Transcript Interview with James C. Roumell, President and Lead Portfolio Manager at Roumell Asset Management, LLC
67 WALL STREET, New York - June 4, 2013 - The Wall Street Transcript has just published its Multicap Value Investing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investing in Financial Services - Large Cap Investing - Value Investing - High Quality Companies - Bottom-up Investing - All-Cap Growth Investing
Companies include: Tecumseh Products Company (TECUA), Apple Inc. (AAPL), Merck & Co. Inc. (MRK), Berkshire Hathaway Inc. (BRK-A), Dell Inc. (DELL), Transocean Ltd. (RIG), Sears Holdings Corporation (SHLD), J. C. Penney Company, Inc. (JCP), Ultra Petroleum Corp. (UPL) and many more.
In the following excerpt from the Multicap Value Investing Report, an expert analyst discusses the outlook for the sector for investors:
TWST: You have described your approach as "a different approach to deep-value investing." Would you explain that a little more?
Mr. Roumell: Over the years, we have struggled with trying to create a very easy to understand description of what we do, and for a couple of years we used "a different approach to deep value." When we put that tag line together, we had a couple of things in mind.
Number one, we don't mind buying a growth stock. Whereas traditional value investors are often associated with focusing on Sears Roebuck (SHLD) or J.C. Penney (JCP) turnaround stories, which have real estate and so forth, we are interested in growth as well. We just don't want to pay for it. We want to try to get it for free, and we try to get it free in different ways.
Another way in which we are different is most traditional value is really associated with a deep commitment to buy and hold, and we don't mind selling under the right circumstances. So I don't think we have the same commitment to buy and hold that a lot of traditional deep value has, and we're highly opportunistic.
Right now in our fund, we are holding 35% cash. The tag line we have focused on now is on finding value through out-of-favor, overlooked or misunderstood securities. That is probably a more accurate description of what we do.
TWST: You said you are holding 35% cash right now. What determines how much cash you hold?
Mr. Roumell: We will hold cash if we don't have a great idea where we want to invest. If we have an idea that grabs us, we will absolutely buy it. There is no hesitation to deploy capital if we can justify it on a company-specific basis. We are not trying to...
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.
