67 WALL STREET, New York - February 19, 2014 - The Wall Street Transcript has just published its current Investing Strategies Report . This special feature contains expert industry commentary through 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: Investing Strategies - Portfolio Managers - Small Cap Investing - Upside in Small-Cap Stocks - Bottom-Up Stock Selection - Lowered Risk - Large-Cap Growth - Capital Appreciation
Companies include: Apple Inc. (AAPL), Johnson & Johnson (JNJ), The Coca-Cola Company (KO), McDonald's Corp. (MCD), Federated Investors, Inc. (FII), Best Buy Co. Inc. (BBY), Cliffs Natural Resources Inc. (CLF) and many others.
In the following excerpt from the Investing Strategies Report, an experienced money manager discusses his methodology and his outlook for investors:
TWST: Could you please start with an overview of WEDCO, how it's structured, with a view to the recently launched Power Dividend Index Fund, and how it has evolved?
Mr. Thompson: Just to give you a brief background on the firm, W.E. Donoghue & Company, the firm is probably best known for our founder, Bill Donoghue. Bill goes back 40-plus years in the financial services business in its various forms. He is probably best known for being the money fund guru back in the early 1980s. He had a New York Times bestselling book, Donoghue's Complete Money Market Guide. He did follow that up with another six books.
In addition, he had newsletters along the way, and really the firm was established because newsletter subscribers said, "This is great, Bill, we like what you're doing. However, can you just manage the money for us?" So in 1986, we were established as a registered investment advisory firm, and as a firm we've always taken a proactive approach to investing in the markets - a tactical approach. And over the years, we've been delivering strategies typically with mutual funds, where we've been trading the fidelity funds of old, or more recently we've been trading ETFs.
And now with the launch of our own index, which we've recently collaborated with Standard & Poor's and S-Networks on, we now have a solution that is an index-based solution. That is, replicated in the form of a separately managed account, where we do invest in individual stocks and/or our mutual fund, which we've just recently launched, and that index used for the mutual fund is W.E. Donoghue's Power Dividend Index.
TWST: What is the focus and strategy of the fund? What are its guiding investment principles?
Mr. Thompson: I think in light of the fact that the we've got an aging demographic whereas we all know, Boomers are turning 65 in droves - and over the last decade-plus, going back to the turn of the millennium, where investors have been facing challenges - is the fact that we've had a roller coaster ride which has offered about 3% annualized returns since the millennium. By comparison, money market rates have annualized returns of somewhere in the neighborhood of 2%.
So the challenges in facing the demographic of an aging population is how to derisk strategies...
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.