67 WALL STREET, New York - March 18, 2014 - The Wall Street Transcript has just published its Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Secular Growth Themes - Small Cap Investing - Upside in Small-Cap Stocks - Value Investment - Balanced Investment Approach - Global Growth Equities - All-Cap Investing - Value and Growth Investing
Companies include: Wendy's/Arby's Group, Inc. (WEN), Deckers Outdoor Corp. (DECK), FreightCar America Inc. (RAIL), CSX Corp. (CSX), Freeport-McMoRan Copper & Gold (FCX), McDermott International Inc. (MDR), Orion Energy Systems, Inc (OESX) and many others.
In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses his investing methodology and top stock picks.
TWST: Could you please begin with an overview of the North Star Opportunity Fund?
Mr. Cohen: At our core, we are value investors that are seeking long-term risk-adjusted capital appreciation. I believe the uniqueness of the fund is that the Opportunity Fund seeks investments in what we'd like to say is a micro-to-macro universe - microcap stocks all the way to large-cap stocks and anything in between.
TWST: What are some key points about your guiding principles and investment philosophy?
Mr. Cohen: We are attracted to an idea based upon compelling value, or if there is something very intriguing or interesting about the story that draws us in. When we came up with the name the Opportunity Fund seven years ago, the premise was, what is the near-term catalyst in the next two, three, six months that the market is overlooking?
TWST: So you combine a value perspective with a growth strategy?
Mr. Cohen: Absolutely. I think at our core we are value investors; however, we have the flexibility within the fund to get excited about ideas or stories that are outside the deep-value zone and focus on the potential for growth or even an acquisition of an underlying company. We truly have a wide variety of holdings in size and sector, or even if you want to say universe. And I think that's helped us to achieve outperformance over the last few years.
TWST: What are the valuation metrics that you consider when you are looking at a potential holding? What are the other factors that you look at?
Mr. Cohen: Something that attracts us are companies that have stable businesses that generate free cash flow, and red flags that scare us are companies that are overleveraged. So those are the companies we try to avoid, but sometimes the story of a turnaround is too compelling. But in general, debt and leverage are things that terrify us..
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.