Kenneth E. Lee, Chief Investment Officer of Bridgehampton Capital Management LLC, Sees GM as Top Pick in Value Oriented Fund
67 WALL STREET, New York - July 11, 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 - Large-Cap, Deep-Value - Value Oriented Strategy - High-Quality Companies - Value Investing, Deep Value - Longer-Term Investing
Companies include: General Motors Corporation (GM) and many others.
In the following excerpt from the Investing in Dividend-Paying Companies and Other Strategies Report, an experienced portfolio manager discusses his investment methodology and top picks:
TWST: General Motors is the other stock you mentioned.
Mr. Lee: Yes, it's another top equity name for us. Similarly, we view this as being an out-of-favor name. It was only recently added to the index. But we think on a fundamental basis, with $10 of cash per share on the balance sheet plus significant net operating losses and having rationalized their pension obligations materially by purchasing insurance over the last year or so, that General Motors stock in the low $30s is attractive. Our price target is $45 to $55 a share here, and we think that in large part the discount results from people concerned about the overhang from the government, which has been selling about a million shares a day, and from a lack of sponsorship by the investment community both on the buy and sell sides.
We believe their products are quite good, they have an excellent business in China, and they're rolling out new products all this year that have been getting good reviews. And that product refresh should put them in a good position to compete with other manufacturers. As a value investor that's looking for significant upside potential, we think that there is good value here with limited downside potential for all the reasons I just mentioned.
TWST: Would you give us an example of a hedge trade?
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.
