Mr. Auer: Since our launch, we have chosen to focus on the management of the Auer Growth Fund. While we are considering expanding our fund offering later this year our primary focus will be the current fund. The Auer Growth fund that we manage is a growth-oriented, multi-cap fund; it's a true go-anywhere fund. We're not constrained by a market cap or other factors, and what we are looking for are basically stocks that we feel have the potential to double in value. They key to our success is our very disciplined approach to choosing the companies we invest in. We look for companies that have at least 25% earnings growth for the quarter year-over-year - no exception to that - at least 20% revenue growth for the quarter year-over-year that we can buy, trading less than 12 times this year or next year's earnings forecast. We really feel we're buying companies that probably deserve to trade at 25 times earnings, but we're looking for the ones that are maybe underfollowed or not yet discovered, or just started growing wildly. For whatever reason, these are companies that are still at a very low valuation. Then we are looking to sell them when they do double, that is a key part of the discipline. We don't get greedy and sit around to try to make even more on them. We're literally trying to buy stocks at half of what we feel they're worth, and we're trying to sell them at what we feel is just a fair value and let someone else make some money from there. To date the fund has had 27 doubles.
Tickers included in this excerpt: AAPL, AMZN, CBST, ESI, FUQI, GOOG, JRCC, MFC, NVS, OFG-A, PRU
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.