Daniel M. Miller is Executive Vice President of Gabelli Funds, LLC, and Portfolio Manager of several mutual funds, closed-end funds and separate accounts. Mr. Miller launched the Gabelli Focus Five Fund, a concentrated best ideas strategy in 2012. Mr. Miller joined Gabelli in 2002 after graduating magna cum laude from the University of Miami.
In this exclusive 1,986 word interview only found in the Wall Street Transcript, Mr. Miller details his new unique fund:
“The entirety of the portfolio will be invested in the pet economy, but 20% might be companies that also participate in other businesses. For example, some companies may have pet food as one product line. Take a company like Smucker’s (NYSE:SJM) that has done several acquisitions in the pet food category.
Its most recent deal was a $2 billion transaction. They purchased Ainsworth Pet Nutrition to get into the natural and organic area. Yet, Smucker’s is a much more diversified business, and so that would fall into the other 20% category as defined in the prospectus.”
Mr. Miller explains many of his top picks in the interview:
“Another is Covetrus (NASDAQ:CVET), which was recently formed when Henry Schein (NASDAQ:HSIC) spun out its veterinary distribution business.
It simultaneously merged with a technology platform called Vets First Choice, a private company. Covetrushas a very robust practice management and technology solution that is focused on compliance. This is an important trend that will lead to growth in the pet economy.
You come home from the vet with medication and might be on top of it for a couple days or weeks, but then compliance starts to decline. Even though you truly love your little dog, it isn’t probably the first thing on your mind every morning.
So Covetrus will use technology and a mobile app, with reminders, emails and text messages, to ensure that you treat your dog as you might your own human child. That is going to increase the longevity of your pet’s life and increase the revenues and profits of the veterinarian.
It is a very interesting business model with a lot of growth potential. The average vet today spends about $50,000 a year with Covetrus. The company projects that figure could be upward of half a million dollars a year. So a 10 times growth opportunity over the next five years or so.”
Get the complete picture on this and many other pet industry investment opportunities by reading the entire 1,986 word interview, only in the Wall Street Transcript.
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