Bullseye Asset Bets Big on Small Stocks: Barron’s Top 100 Fund Manager William Bales Reveals His Method

August 28, 2018

William Bales serves as Portfolio Manager and member of Bullseye Asset Management LLC. He previously served as the Portfolio Manager at Janus Capital Management responsible for the Janus Venture Fund and separately managed portfolios in the small-cap growth discipline. Mr. Bales joined Janus Capital Management in 1991 and became an analyst in 1993. He served as co-manager of the Janus Venture Fund from 1997 and became the sole portfolio manager in January 2001. Mr. Bales was selected as one of Barron’s Top 100 Fund Managers in 2001 and 2005, and received multiple awards from Lipper in 2008 for “Best Fund over 5 Years” and “Best Fund over 3 Years.” Mr. Bales was featured in Investor’s Business Daily in February 2007 under “Mutual Fund Profile.” In this exclusive 2,985 word interview with William Bales, the Wall Street Transcript reveals his top picks and methodology for our readers.

“You’ve heard before that “bull markets don’t die of old age, they die either from the ill effects of the credit cycle or from a policy mistake by the central bank tightening too quickly.” The Fed had been easing to protect the United States from going into another Great Depression, and now we’re seeing the unwinding of that process. Because the economy is strong and corporate earnings are doing very well, that’s allowing interest rates to start going back up to get to a more normalized level. This normalization sets up for a really good environment for small-cap companies.”

A good example of riding high on the bullseye investment decision is the portfolio pick Ultimate Software:

“Our research on Ultimate Software discovered a company at $5 that is worth over $275 today. That’s what we would call long-term investing. We bet on the management team that’s doing the right thing with their business plan, and we bought it at the right price. Over the years, the different business cycles will give you opportunities to buy and sell a stock, but once we find good businesses, we like to hold them. Good companies get bought, while bad companies get sold, and we’re trying to find those best-of-breed-type business models.”

Get all the top picks from William Bales of Bullseye Asset Management by reading the entire 2,985 word interview in the Wall Street Transcript.