67 WALL STREET, New York - September 5, 2013 - The Wall Street Transcript has just published its Multicap Growth 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 Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investing in Financial Services - All-Cap Growth Investing - Disciplined Growth Approach - Global Economy - Top-Down and Bottom-Up Investing - High-Quality Growth
Companies include: Exchanged traded funds (ETF).
In the following excerpt from the Multicap Growth Investing Report, an expert money manager discusses his portfolio-construction methodology and his investment philosophy:
TWST: Would you walk us through your stock-selection process?
Mr. Turton: We implement using exchange-traded funds. So our security selection process is going to be quite a bit different from typical discounted cash flows or valuation or even traditional security analysis. What we look for are those exchange traded funds that provide a high-level liquidity. Obviously, we are a tactical manager, and we need to be able to trade on any given trading day. So that's the screen we look at.
Another screen would be, does this exchange-traded fund in fact give us an exposure to a particular risk factor or a desired asset class, and how efficiently does it track its benchmark? And then finally, there is a cost to transact, there is a cost to own. So we look at the total cost of owning this exchange-traded fund. Obviously, that's an expense to investors, and it harms performance. So we try to keep our costs, transactions and fees, as low as possible.
TWST: Would you discuss why a multicap growth investment approach makes sense in the current market and economic environment?
Mr. Turton: I suppose this is probably directed just towards the equity portion of our portfolio, so I'll answer it as such. There has been dispersion between smaller-cap/large-cap, value and growth.
We do invest throughout size as well as into value or growth companies because there oftentimes are greater opportunities. In our international portfolio, we allocate to and we have, let's say, a significant position in those smaller-cap equities throughout Europe and the emerging markets that have a tendency to outperform when those markets recover. If you just focus on the traditional large cap, you would not own a lot of these names that have greater potential for higher returns in periods of recovery, which we believe 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.