67 WALL STREET, New York - May 13, 2014 - The Wall Street Transcript has just published its Investing Strategies Report offering timely interviews with professional portfolio managers for serious investors. This special feature contains in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cyclical Sectors, Exposure to Emerging Markets - Value Oriented Strategy - High-Quality Companies - Dividend-Paying Stocks - Capital Appreciation - Global Macro Trends - Investment Risk Management Strategies - Long-Term Investing
Companies include: Sonic Corp. (SONC), The Cheesecake Factory Incorpo (CAKE), Chipotle Mexican Grill, Inc. (CMG) and many others.
In the following excerpt from the Investing Strategies Report, an experienced, professional portfolio manager discusses his investing methodology and current top picks:
TWST: Could you please begin with a snapshot of Runnymede's offerings?
Mr. Wang: Runnymede's in its 20th year managing client accounts, and our traditional offerings are large-cap growth equities, balanced account management and U.S. Treasury fixed income. We proudly offer a couple of strategies that you will not find anywhere else, such as our Service Sector and Index Equity Plus strategies.
TWST: How would you characterize these more unique strategies like the Service Sector Strategy? What's the underlying investment philosophy?
Mr. Wang: The Service Sector Strategy is a growth strategy that benefits from the steady and predictable growth of service sector companies. Think about it - the U.S. economy is nearly 80% services. Beyond that, service companies have characteristics that make them very attractive investments. We think investing in the service sector is the best way. With a strong track record since mid-2006, it should have mass appeal, but we believe it requires a little different way of thinking. To our knowledge, Runnymede is the only firm that manages a strategy investing exclusively in services.
The Index Equity Plus Strategy is completely different. It invests in broad market exchange-traded funds for long-term growth, while attempting to lessen volatility by side-stepping major market downturns. The latter component, aimed at delivering asset protection, is especially important for retirees and eleemosynary institutions. With the bear markets of 2000 and 2008 fresh in recent memory, I think many would agree that a "set it and forget it" portfolio approach can be a painful experience.
TWST: Within the Service Sector Strategy, what is your method for determining allocations? What are the industries that fall within the strategy?
Mr. Wang: One great thing about the service sector is that it is so broad and diverse. Contrary to other sector-specific strategies like the narrow focus of a banking sector strategy, for example, the Runnymede Service Sector Strategy is not like that at all. The service sector includes many subsectors including health care service, food service, financial service, even oil service. It is our job to identify and own great service companies while still achieving diversification across subsectors.
TWST: What were your best performers in the Service Sector Strategy during 2013? And how is this evolving year to date?
Mr. Wang: TripAdvisor (TRIP) and Sonic (SONC) were two of our best-performing service sector stocks last year. Looking at 2013, our consumer discretionary and technology stocks performed incredibly well, and in addition we had about a dozen stocks that appreciated over 50%, including...
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.