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Nibble, don't gobble on dips

Wednesday, January 13, 2016 - 03:40

Portfolio manager David Marcus of Evermore Global Advisors sees value in Vivendi shares. He says investors should take advantage of the market downturn and buy small portions of select stocks.

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Stocks couldn't hold on their gains on a choppy day even as oil return to positive territory. For now is on the mark we turn to David Marcus he's the portfolio manager ever more global advisors whose global value fund rose nearly 8% last year beating. The benchmarks welcome David now stocks up on good China data will turn south stock itself. Wells back up but stocks still now. How to explain to market. Well look today tees like yesterday and they've elected it before that were. A lot of investors are getting really wrapped up in sort of that that little movements in the price of oil so alt and almost taking the lead it's not China. There's always an issues there was a problem I think. More recently investors are so focused on sort of things that are very short term. But if we do take a step back yes the price of those now. That will hurt some but it can truly benefit others. So we actually used days like today to add to positions. What kind of up adding. So one of our largest holdings is that. Vivendi is one of the media companies in the world and universal music the largest music company in the world. And the stock is has really kind of puts you a mediocre last twelve months that's down on 20% cents a some brightness right. But the fact is you have a powerhouse group of of content assets. You led by chairman whose rapidly restructuring. What was a very underperforming assets. Just a few years ago and so they've been selling that's refocusing the business there recently bought 20% stake in Telecom tie Italy in obviously. In Ubisoft which is videogame maker so the recasting of the entire company I think investors haven't really focused enough on how much value there really cheap. There's a lot of moving parts David and it stuck itself. I always stay away from commodity plays in and that has served us well. And so for the most part my rule of thumb this price of oil up oil stocks up as well down almost now. So we kind of shy away from those. Whose real hard core oil direct place. And things of that nature and all kinds of metals and commodities is just not what we want to I think they will be very rocky Ford going back to the US markets is. Our transports are down sharply today at leading indicator and getting got its earnings recession this is earnings season starts. Are you there are some B boys missing who would be possibly going towards a bear market. Here. We don't think that's the case. You know I've talked to most economists. They've talked called ten of the last two recessions. The fact is. Use the bad. Gazans and and this sort of fear as a chance to add your positions we kind of think of this is more what I would call enablers market take a small by. Because of tomorrow's another bad day you can take another bite you really back up the truck and and I think gobble. You're not gonna have enough resources to keep coming back in the accused to not let the motion nations of the short term. Really impact you though I would say look yes China is a real issue oil. The conservation and the movements and all that's a big issue. But the but the fact is there's always issues is always a problem. And the key is that in the long on. There are great companies out there there's wonderful cheap stocks with a lot of catalysts. And our view is stay the course. Don't let. The short term ism really throw you off course. Stay the course or nibble on the dips that huge bites into okay thanks listed. Are affected David Marks an ever more global advisors I'm Fred Katayama this is well.

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Nibble, don't gobble on dips

Wednesday, January 13, 2016 - 03:40