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Wealth Strategies: Energy stocks a value, fund manager says

Wednesday, March 20, 2013 - 04:17

Mar 21 - Harry Hartford, president of Causeway Capital, 2013's Lipper Award winner for small company, equity manager, says equities might be due for a small correction but sees value in energy stocks.

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Lipper awards in town Manhattan where -- fund managers across the kind -- being recognized. I mean right now is -- Hartford is that cost way. And you -- small room award for equity -- congratulations you think and -- -- Angeles. Tell little bit about your strategy at what you think of that you park your viewers believed the Iraq. What -- big differences. Between our strategy and many other strategies that we combined. Fundamental bottom up valuation went -- quantitative framework. Non quantitative framework incorporates. Riskmetrics. As -- qualitative and it's such bad. Well from the risk perspective volatility of returns. Were very focused on portfolio volatility. Where we're we're gonna be 100% invested. And what's important for investors who are exposed to a portfolio that's 100% invested in equities. Does the volatility of god returns in overtime. And so we focus not just gone to return expectations. But the would be paid for taking all the additional risk so we want to perfect game. For -- crude unit off return always be compensated. To take on additional risk or vice -- So exciting well there's certain sectors that you like better than others are there certain groups of stocks that just. Seemed to have a good numbers that you're looking at. What -- volume manager so we're always going to be looking for companies that. Relatively low price earnings ratios. We're always going to be looking for companies that have got good balance -- we think. Financial strength as a very important attributes for it also is equity shareholders. We're going to be looking for companies where the underlying fundamentals are supportive of the business. Of -- now. Well yeah the current environment. We're looking for businesses that. Perhaps of the unique business model that the market yet to recognize. We own. Leone and -- based company called Reed Elsevier. And they are in the information industry from predominantly. Journalists foreign universities. And in addition to -- the Lexus nexus ad business for four lawyers. And it's. -- business they generate good returns. There aren't too many competitors -- they've got a good moat around which they can protect their industry. Yeah we like energy stocks at the moment a lot of people have. Abundant energy stocks. Say he. Very modest earnings multiples they pray -- the peace dividend yields. And they look relatively undervalued -- a lot of other stocks which. As we all know too well a lot of companies on other -- all time highs on energy companies on. That's not gonna -- next it's getting harder to find value stocks in the market and are you worried about -- aren't. It's obviously a little bit harder to find cheap stocks. They're not anywhere near -- treatments -- -- three years ago. So yes it's it's bigger challenge divine miss -- opportunities or. It's a bigger challenge to find -- here in this -- opportunities for three years ago. I expect -- any sort of correction given what we've seen in the marketplace. Equities are always liable to give you a little bit of surprise so what when they come as a big surprise to me if we got a bit of a correct them. I don't think we're coming. That we wouldn't anticipate meaningful correction. Equities probably -- -- that it -- themselves and they may give up a little bit of the gains that they have. -- generated particularly the United States in the last. Or five months. You know like we are I don't subscribe to the view that we're going to have Hamas and help them and have a repeat of 2008 and 2000. Thanks so much like family. I'm Rhonda -- this is.

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Wealth Strategies: Energy stocks a value, fund manager says

Wednesday, March 20, 2013 - 04:17