Pedro Marcal is the Director of International Equities and a Portfolio Manager at Foresters Investment Management Company, Inc. — FIMCO — and joined the firm in May 2018. Previously, he was a portfolio manager of global and international products at Fred Alger Management, where he worked for more than five years.
Before that he was a portfolio manager at Allianz Global Investors and its predecessor, Nicholas‐Applegate Capital Management, for 18 years where he focused on international equities, including developed and emerging markets. Mr. Marcal has been in the investment management industry since 1994.
He has a B.A. in economics from the University of California at San Diego and an MBA from UCLA.
In this 4,245 word interview, exclusively in the Wall Street Transcript, this experienced portfolio manager details his investment philosophy and top picks.
“We seek capital appreciation by focusing on those companies undergoing positive change that isn’t fully recognized by the market. We use a team of sector analysts to do in-depth fundamental research on companies. Philosophically, I would say that there are three key beliefs underlying our approach.
First is that stock prices are driven by earnings and cash flows. So the higher the earnings and cash flows, potentially the higher the stock price.
This relationship is coupled with the belief that markets are inefficient, and one of those inefficiencies is how investors recognize business change. We seek to invest in companies that are undergoing a material, positive change.”
One positive near term cycle is identified by Mr. Marcal:
“Actually, a large part of this new product development cycle is driven by the gaming platforms. We are about to enter another gaming cycle where, by 2020 probably, you’re likely going to start to see new Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) gaming consoles.
On top of that, you have Google (NASDAQ:GOOG) launching a cloud-based gaming initiative, for lack of a better term. So people no longer sit down at home and watch TV for a couple hours. Instead, they watch YouTube videos and play games on their phones during their commute and have a wider range of entertainment options.
I think there’s a big transformation that’s taking place in this marketplace, and how these games are being monetized for their respective owners is particularly intriguing.”
To get the stocks benefitting from this new economic cycle and other identified investment trends, read the entire 4,245 word interview, only in the Wall Street Transcript.