Joseph M. Boskovich Jr. is Co-Founder and Partner at Old West Investment Management. Mr. Boskovich is a member of the Portfolio Management Team and is on the Old West Investment Committee. He graduated from the Marshall School of Business at the University of Southern California, where he was a four-year letterman and Academic All-American on USC’s National Championship Football Team. In this exclusive interview with the Wall Street Transcript, Mr. Boskovich highlights some of his top portfolio investments for 2017: “Formula One (NASDAQ:LMCA) is one of the few global sports franchises, and it has been very under-exploited. Grand Prix racing is huge throughout Europe, Asia, South America and the Middle East. The new management will be intent on pushing the sport into new markets, particularly in the United States. We currently only have one Grand Prix race in the U.S., in Austin, Texas, and that will change. ”
The strategy reflects the confidence that Mr. Boskovich has in the management of the company in his portfolio: “…Liberty Media’s first action as the new owner of F1 was to remove Ecclestone and hire the talented Chase Carey as Formula One’s new Chairman and CEO…” as well additional assets: “…the tracking stock also includes various other stakes in companies such as Liberty Media’s 34% ownership stake in Live Nation (NYSE:LYV), its 1% stake in TimeWarner (NYSE:TWX), its 1% stake in Viacom (NASDAQ:VIA), its 7% stake in Kroenke Sports & Entertainment, and several others.”
Some other top picks also include an entertainment bend to the value stocks Mr. Boskovich favors: “The core thesis behind our investment in IDW Media (OTCMKTS:IDWM) centers around the company’s attractive and growing library of intellectual property, and the growing demand for original content in television. IDW Entertainment has access to valuable properties through IDW’s publishing unit and also receives valuable marketing support. ”
The price paid for his portfolio companies is more important than the inherent brand name value: “Amazon (NASDAQ:AMZN) trades at 185 times earnings. If Amazon stock was to fall two-thirds from where it is right now, it would still be trading at 60-plus times earnings, which still suggests a very rich valuation. Now it’s entirely possible that Amazon grows into its valuation, and I don’t think that I’d bet against a company like Amazon, but you need to make many unknown and lofty assumptions about its future prospects if you want to make money buying the company today. So, like I said, we’re definitely attracted to things that people want or need, but it is paramount that investors buy into those assets at attractive valuations.”
To see more of the top picks from Mr. Boskovich read the entire interview at the Wall Street Transcript.