July 31, 2008
Every week here at TWST, we speak to a variety of Portfolio managers about how they invest. With so many managers out there, it can sometimes be hard to distinguish what makes a particular management firm distinct. That’s why we here at TWST make sure to ask them that questions directly. What gives you your edge?
- Frederic Burke, Johnston Lemon Asset Management (invests in Undervalued Large Cap Stocks) – “We have deployed our investment discipline in a consistent manner for over 10 years. Clients understand our investment process and how different securities fit into the asset allocation puzzle. Our competitive advantage is in our performance and level of service. We are very proactive with our clients. We continually work to explain our process and skills and to understand client goals and objectives. The resulting relationship defines our value proposition. Finally, I think that the individuals who are employed by Johnston Lemon Asset Management are very talented, understand the markets and know how to communicate the position of the organization to our clientele.”
- Eric Heyman- Olstein Capital Management (shareholder activist value investing)– “We approach every situation opportunistically. We look at every situation from the point of view that we own 100% of that company. As a 100% owner, what would we do? How would we achieve our value? I think a truly unique part of our process that makes us different is our analysis rooted in forensic accounting. Robert Olstein, who founded Olstein Capital Management, previously co-authored the Quality of Earnings Report, a research service that undertook an inferential analysis of financial statements and footnotes to alert institutional investors to deviations between reported earnings and a company’s economic reality. This same approach is the foundation of our analysis and allows us to assess the quality of earnings that a company is reporting. We want to differentiate between companies with aggressive and conservative accounting practices and believe that companies using aggressive accounting practices may be prone to future earnings and revenue shocks, whereas companies pursuing conservative accounting practices may not only have more of a cushion regarding such surprises but may be managed in a way that values its shareholders.”
- Doug McPeek- Nottinghill Investment Advisers (value and growth blend)- “I think two things. First of all, we are highly disciplined. This is a highly disciplined way to manage money. Second and probably even more important is this combination of value and growth in the same portfolio — two diametrically opposed ways of viewing the investment world. We incorporate both in the portfolio, and the advantages to a client are the fact that we not only have the opportunity to beat the popular market averages, we can do it on a more
consistent basis.”
For the full investment strategies report, including full interviews with each of these portfolio managers regarding their investment strategy, outlook for the future and stock picks, click here.
