Jonathan S. Raclin, a Principal of Barrington Asset Management, Inc., has been Managing Director of the Enterprise Portfolio. Mr. Raclin graduated with a B.A. from St. Lawrence University and an M.A. from Northwestern University.
Following service as a Commissioned Officer, United States Marine Corps, Mr. Raclin was associated with White, Weld & Co. as a Partner of William Blair & Company, L.L.C., and as Executive Vice President for Capital Markets with The Chicago Corporation. He is a former Regional Chairman of The National Association of Securities Dealers, a former President of the Bond Club of Chicago and of the Attic Club.
He previously served as a director of the St. Simon’s Land Trust, and has been President of the Coastal Georgia Historical Society and Co-Chairman of Emmi Solutions, LLC, a privately held health care information company.
In this exclusive 1,976 word interview in the Wall Street Transcript, Mr. Raclin gives some important advice to investors in the current market.
“We emphasize closed-ended mutual funds for three reasons. The first is diversification; I have little confidence in anybody’s ability to consistently and correctly identify excellent investments.
I like the idea of mutual funds because of the obvious diversification from at least 100 positions in the portfolio…
The second reason I use closed-ended funds is I have little confidence in anybody’s ability to consistently and correctly evaluate valuation levels…”
The economic foresight of Mr. Raclin is honed by decades of experience:
“I believe that the two largest long-term risks to the stock market are, first, the amount of federal debt, $22 trillion with an average life of five years, which means an enormous amount of rollover every year growing at $1 trillion a year based on the projected deficit.
And the second is the entire area of cybersecurity. This incredibly complex technology is critical to almost everybody. When the lights go off, when the computers go dark, need I say more?”
Current IPOs are not investable for Mr. Raclin:
“Items for concern are valuations for some of these overly hyped IPOs. For example, the recent public offering of the company Lyft (NASDAQ:LYFT), from $45 to $88, now trading at $54.
Or Uber (NYSE:UBER), which reported $3 billion in revenues for the quarter and lost $1 billion. My clients would have a heart attack if I owned those kinds of things.”
Get the full detail by reading the entire exclusive 1,976 word interview, only in the Wall Street Transcript.