A Wall Street Transcript Interview with Thomas A. Eidelman, CFA, Vice President for Eidelman Virant Capital, and the Lead Portfolio Manager of the "Value" Equity Composite: Building a Value-Oriented Equity Portfolio with a Strong Focus on Management
67 WALL STREET, New York - June 25, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains expert investing 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: Reactionary Investing - High-Quality Companies - Investing in Special Situations - Secular Growth Themes - Large-Cap, Deep-Value - Defensive Growth Approach - Long-Term Investing - Event-Driven Investment Opportunities
Companies include: Pacific Premier Bancorp Inc. (PPBI), Federal Agricultural Mortgage (AGM), Delta Air Lines Inc. (DAL), Alaska Air Group Inc. (ALK), Furmanite Corporation (FRM) and many others.
In the following excerpt from the Investing Strategies Report, a professional and highly experienced portfolio manager discusses his investing methodology and top picks for investors:
TWST: Could you please begin with an overview of your firm and some highlights from its history?
Mr. Eidelman: Sure. I think sometimes it is good to start at the very beginning. My father, David Eidelman, started his investment career when he purchased 70 shares of Admiral Corporation just before the color TV boom took off in 1963. He switched his major quickly from pre-med to finance, incorrectly concluding that picking winners in the stock market was easy. But once he joined the investment business he worked as Director of two local New York stock exchange firms here in St. Louis, Missouri, before he started our current company, Eidelman Virant Capital, in 1982.
His goal was to earn superior investment returns for his clients with less risk. We merged with another outstanding investor and individual named John Virant in 2010. Our current company is a combination of their two investment philosophies, which they've been successfully implementing for over 30 years.
TWST: What are your responsibilities at the firm, and who are your typical clients?
Mr. Eidelman: I'm the Lead Portfolio Manager on our value composite, our flagship value-oriented equity portfolio, and to answer your question about our typical clients - while each client's objectives vary depending on their risk profile, our typical client is looking to earn above-average equity returns while taking below-average risk. They are looking for their accounts to grow and outperform the indices like the S&P 500, the Russell 2000 and world indexes.
TWST: What is the guiding investment philosophy that you use to construct the value composite portfolio?
Mr. Eidelman: We adhere to a value investing philosophy similar to that espoused by Warren Buffett and Benjamin Graham. We are looking to buy companies at a discount to their intrinsic value. More specifically, we look at the balance sheet and try to buy at a discount to the replacement cost of those assets, discounted cash flows or recent competitor takeout multiples.
TWST: Can you give us a closer look at your specific stock-selection process and the metrics that you use to evaluate companies?
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.
