Manoj Patel, Director, Co-Head of Infrastructure Securities and Co-Lead Portfolio Manager at Deutsche Bank, Interviews with The Wall Street Transcript: Investing Gatekeeper Infrastructure Companies
67 WALL STREET, New York - August 20, 2013 - The Wall Street Transcript has just published its International Investing and Other Strategies 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 Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - Value Oriented Strategy - Value Investing - Deep Value - Exposure to Emerging Markets - High-Quality Companies, Value Investing - Investing in Asia - Longer-Term Investing - Asia Pacific Investment Theses - Investing in China - Equity Investing Strategies - China's Domestic Markets
Companies include: AT&T, Inc. (T), Sprint Nextel Corp. (S), Verizon Communications Inc. (VZ) and many more.
In the following excerpt from the International Investing and Other Strategies Report, an expert money manager discusses his portfolio-construction methodology and his investment philosophy:
TWST: What is your investment philosophy, and what do you like about gatekeeper infrastructure companies?
Mr. Patel: For us, broadly speaking, we like these companies for their stability and the predictability of cash flows. We have a deep-value process that we utilize for underwriting on all the companies in the universe, which determines which names we invest in. From our standpoint, what attracts us to any individual name is it would have to be that it has higher risk-adjusted returns compared to a relative basis.
What we mean by that is that, yes, these companies obviously are in the more stable side of the investment spectrum. Within that, we want to make sure that if it's a higher return, it does have to be risk-adjusted. You could have a company with extremely defensive characteristics to their profile and then another company that might have a bit more sensitivity to economic prospects. So depending on the sector, the industry and the country in which it's based, there are different required levels of return.
What we get most excited about and what really drives investment and potential individual names is a company where they already have an existing asset base, and that produces very stable and predictable cash flows. But they have an opportunity, organic opportunity to grow their business by expanding the use of existing assets, or they have an in-house platform that allows them to grow on an efficient basis without having to spend much capital. When you look at our portfolio, there are number of pipeline companies. The reason we have been attracted to the pipeline companies is that these companies are going to have very stable, long-term cash flows and existing contracts that could be of durations of 10, 20, maybe 25 years. Their existing base of assets is very stable.
What is going on in the energy space, particularly in North America, is that we are...
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.
