67 WALL STREET, New York - July 15, 2013 - The Wall Street Transcript has just published its Investing in Dividend-Paying Companies and Other Strategies Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - Cyclical Sectors, Exposure to Emerging Markets - High-Quality Companies - Value Investing, Deep Value
Companies include: First Citizens BancShares (FCNCA) and many others.
In the following excerpt from the Investing in Dividend-Paying Companies and Other Strategies Report, an experienced asset manager discusses his outlook and methodology for selecting top stocks:
TWST: Please start with an introduction to the bank's Capital Management Group.
Mr. Teal: We are the investment division of First Citizens Bank. We manage over $5 billion in assets. We focus on asset allocation and traditional investment strategies, primarily investment-grade bond products and long-only domestic equity strategies from large to small cap.
TWST: What would you add in terms of your overall investment philosophy and how that applies to the different strategies?
Mr. Teal: Overarching our investment philosophy is a focus on higher quality, which we have continued to emphasize during the economic recovery. Additionally, we pay close attention to the absolute and relative valuations of securities, tending to look for opportunities in undervalued assets or where distrust and skepticism is prevalent in the underlying investments. We believe a focus on quality combined with attractive valuation and reasonably priced growth presents the best opportunity for investors.
TWST: Is that leading to any particular themes, or to the overweighting of any industries or asset types?
Mr. Teal: Some of the areas that I think are more controversial at this point would be international markets, where the economic recovery is behind the U.S. and emerging markets are facing a slowdown. For the first time, the U.S. looks to be one of the most attractive markets due to the aggressive policy actions taken following the financial crisis, and the steady improvement in corporate earnings that have occurred over the last four to five years. We think that the U.S. remains the most attractive market. Within the U.S. there are attractive sectors in the economy, where there is investor distrust but a fundamental recovery unfolding that will offer investors opportunities.
One of the more attractive areas at this point would be the financial sector, which was at the heart of the financial crisis just a few years ago. We think as the economy and housing continue to recover, the financial sector offers some of the best opportunities for investors over the coming years.
TWST: Would you give us a few examples of some of your top holdings or current favorite investment ideas?
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.