Thomas J. Sudyka Jr., CFA, is President and a Portfolio Manager at Lawson Kroeker Investment Management, Inc. He is responsible for ensuring the firm’s adherence to its core investment philosophy, managing portfolios and communicating closely with clients. Mr. Sudyka was a portfolio manager for several global investment management companies prior to joining Lawson Kroeker in 1999. His investment decisions are guided by his 30-plus years of investment experience.
In this exclusive 3,964 word interview with the Wall Street Transcript, Mr. Sudyka describes his bespoke investment management philosophy and picks out some winning stocks and strategies.
“…One of the things that attracted me originally to Lawson Kroeker when I came here almost 20 years ago now. It’s a fundamental approach to investing, but not tied to the traditional growth versus value or small versus large. We have a general belief that you should try to identify and find the very best investments in whichever sector they’re located, rather than try to pigeonhole ourselves as a small-cap value manager or a large-cap growth manager…”
Finding a diamond in Texas is one of Thomas J. Sudyka’s suggestions, and his pick is accounting analyst’s dream come true: “If you look at a smaller-cap company, it’s one that we’ve liked for a long time, Texas Pacific Land Trust (NYSE:TPL). It’s a very unique company, it’s about a $5 billion-market-cap company. It had a tremendous run, so I might be a little cautious here, but when I think the big picture, what they are is a landowner in Texas, primarily West Texas, in the Permian Basin…”
Caution among investors is growing, according to the Lawson Kroeker portfolio manager, particularly among investors who have been around for a few economic cycles: “The foundation boards we’re dealing with, probably for the last 18 months, have been more concerned with overvaluations of the equity markets, stretched performance. We’ve had a very long run of very good performance, and they’re beginning to be concerned with — historically, at this point, you’d be moving more money toward your bond sides of your portfolio in preparation for some kind of potential decline in the stock market. But since their forward-looking returns on bonds aren’t great, they’re all struggling with what to do with that side of a portfolio. Nobody — none of the boards I’m dealing with at least — really want us to go and try to time it in cash.”