Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Finding Winners Where No One Else Will Go


Inside a multi-cap value portfolio with stellar long-term results.

Minyanville: When did you get in there?

Croft: We were buying in March when it was in the teens. Now it is at $30, and we still think the stock is a good long-term holding.

Minyanville: Why is Freeport-McMoRan Copper & Gold a smart bet?

Croft: We like Freeport a lot. The supply-demand issues in copper are real. India, China, and the emerging markets will continue to grow. Freeport will benefit.

Minyanville: Do you also use these energy and copper names as a hedge against inflation? Is that part of the attraction?

Croft: Yes, that is a piece of the puzzle. We are very bottom-up here, looking at every company for its own merits. At the same time, in this reflationary environment, we want to have assets in the ground.

Minyanville: One of your favorite sectors right now is timber.

Croft: Yes, and there we like Weyerhaeuser (WY), which owns seven million acres of timber worldwide. The value of their timberland acreage is equal to the market cap. We also think the company will convert to a REIT when they can, and that will be a catalyst for the stock.

We own Plum Creek Timber (PCL) too, which is a REIT yielding 4.75%. If you think housing will come back over time, these names won't move like Pulte Homes (PHA) or Lennar (LEN), but they will benefit.

Minyanville: How about the health-care sector? Are you finding opportunities there?

Croft: We are focused on Aetna (AET) and UnitedHealth Group (UNH). People think these companies will be in a lot of trouble with health-care reform. But Aetna, which trades at 9.5 times 2010 earnings and has tremendous cash flow, is being priced in for bad news to continue. Now, it won't be a smooth ride in these stocks because headlines are driving them. But we think, if you buy Aetna now, it's a good entry point.

Minyanville: The fund has a strong long-term track record and a solid, experienced management team, but it continues to fly under the radar in a lot of ways. Does that bother you? Being overlooked?

Croft: No, it does not. The fund had just $25 million a couple years ago. So we have enjoyed a lot of big growth. We are stock pickers here, doing our research and finding ideas. We would love to grow the fund over time and we think, with our track record and consistency, investors will be interested.

Minyanville: Thanks for your time, Russell.

Register For Minyanville's Holiday Festivus '09 Here
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos