Malcolm E. Polley, CFA, is President and Chief Investment Officer at Stewart Capital Advisors, LLC. Mr. Polley oversees the investment process and provides the philosophical underpinning for the firm’s research and asset management. Mr. Polley led the effort to form Stewart Capital Advisors, LLC, an SEC-registered investment advisory subsidiary of S&T Bank. Mr. Polley began his career in 1987 on Black Monday, and he has held leadership positions with many financial services organizations, including S&T Wealth Management, Marquette Trust Company, Marquette Advisory Services and West Bank.
In this exclusive 3,979 word interview for the Wall Street Transcript, Malcolm Polley reviews his methodology in detail and reveals his current top picks.
“We’ve increased our exposure to financials a little bit, and financials that allow people to participate in a rising rate environment. One of the companies that we’ve been looking at is American Axle & Manufacturing Holdings (NYSE:AXL). American Axle really came out of General Motors (NYSE:GM) a number of years ago.”
The underlying metrics of this investment are attractive to the Stewart Capital portfolio management team:
“One of the reasons that the company’s value seems to be very attractive is that there is this idea that the company is so largely dependent on the Big Three, and they have been working diligently to reduce exposure to the Big Three automobile manufacturers. They just did an acquisition within this last year that allows them to continue moving away from the Big Three.
And we think that the stock is just overly cheap. It trades at about 4.6 times earnings, about 4.7 times forward earnings and about 4 times trailing earnings. ”
Malcolm Polley is calm about the current state of the markets: “…in terms of downturn in markets, we think that investors’ concerns are maybe a bit overblown as we’re fairly constructive on the markets themselves, but having said that, it really pays to focus in on valuation as it really helps protect in the downside.”
Read the entire exclusive 3,979 word interview with Malcolm Polley in the Wall Street Transcript and get all the top picks.