67 WALL STREET, New York - March 18, 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: Long-Term Investing - Value Investing - Longer-Term Investing - Bottom-up Investing - Global Investing - High Quality Companies - Investment Strategies -
Companies include: eBay Inc. (EBAY), Starbucks Corp. (SBUX), Lockheed Martin Corporation (LMT), Rackspace Hosting, Inc (RAX), Amazon.com Inc. (AMZN), HJ Heinz Co. (HNZ), Berkshire Hathaway Inc. (BRK-A)
In the following excerpt from the Investing Strategies Report, an expert portfolio manager discusses her portfolio-construction strategy and investment philosophy:
TWST: Are you holding cash now?
Ms. Long: We have been holding cash because with all the volatility last year, our clients were uncomfortable, and we were uncomfortable with the political environment. When we trim a position or sell something, that throws cash back in and then we have to look for something else to buy.
Recently, we sold Heinz (HNZ) when it got taken over by Berkshire Hathaway (BRK-A), so now we are looking at how we want to redeploy that cash.
TWST: You are an independent firm. What are the positives and negatives of being independent?
Ms. Long: One important positive for us is there is no conflict of interest, and we can move very quickly, which has been a big benefit with the way the market has acted over last 12 years. If we start seeing a change or sensing a change, we can make changes in the portfolio very quickly.
So for example, during the financial crisis, when things were happening so quickly and the banking stocks were going down every day despite retaining their AA ratings, we were able to react. We saw what was happening and said that you can't have these bond prices dropping like this, so even though the ratings were high and even though everything was fine on paper, we got out of all our financials, both stocks and bonds.
TWST: Tell us a little more about your background.
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.