Russell Croft, Croft Value Fund, on his Investment Philosophy
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Tami Luhby, CNN MoneyTami Luhby, CNN Money
out there. All my family is out and Antarctica there in -- hockey players all these Bruins players that you love -- -- where you think they're from either from you figure from Massachusetts. What -- -- the American players on the crossed amber is here now so why. Why did you leave. My dad a transfer okay Kampman you'd still be their -- guys that are not facts you'd go back tomorrow -- if you. The problem is I'm not a good enough occupier he it to be. Saskatchewan. Produces more hockey players per capita than any other place in the world to -- a -- paid attention the past couple weeks. But supposedly the number one hockey player in the world it turns out. He's not that Iraqi player you know he is that it is just that the other Canadian playing against -- is a better player. -- birdie is a better player than Sidney Crosby . When he doing and you look at the game of hockey -- get ready looks at the offensive side of hockey chemicals that yet now it's a two -- game you gotta be of the play defense Sidney Crosby can't play defense he sucks and the defense he's he's he's a wimp. And he doesn't play. That's an uncle Chris Chelios . Give me a belt made him but he running each. Is. Like rich rich this is embarrassing to to stop that knowing that Jack and Roenick now. Wage on the island -- got your -- -- these. Players I sound yet I've actually her -- The hall of famers I mean it the best like Bobby or he's from Canada and -- now he's from Saskatchewan. Wayne Gretzky he's from -- In isolating it like that's your national sport that you didn't see any baseball players made it in the -
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
right now are taking a look at the waterfront -- the new real estate option. Then moving to a different officers bank put you know they want to establish -- -- exciting new abandoned building and so. The seaports and interest and opportunity that drawing a lot of companies trying to. Why I think I like the financial district to that what's the big attraction of the seaport area you name it may be a mess it's. Poll. It's cheap and it's that's the main thing is that you know right up there looking around at look at okay -- and I moved to and another office building downtown and I stay put. You know that the currently rate or should I mean he moved to the seaport there's a -
Shawn Kravetz, Esplanade Capital
Shawn Kravetz, Esplanade Capital
been and then. We'd like to buy the whole company and then negotiated transaction . Do you own any shares in the company now. We do we heard the second largest outside shareholder. The family owns roughly 90%. Of this company. DE Shaw. Very very large hedge fund in New York City is the largest outside shareholder and we are number two. Why panel why they're why they hesitating to solitude they must feel that the shares are worth Maurizio I think I can conclude. Well. I don't wanna speak for them but I suspect you're right on the money. They had no idea that and they know there's a lot of value there. And I guess they're confident that someday they will get that we would like to help shareholders get that values sooner rather than later. Because. We thought the assets -- well. You made the statement that you feel the -
What's Up On Wall Street - Andy Cinko, Bloomberg News
What's Up On Wall Street - Andy Cinko, Bloomberg News
we asked a question of the day which had to do with Social Security And collect your Social Security for retirement age or are you going to collect literally. 73%. Of Americans collect their Social Security early in the vast majority of cases I think that's a mistake but people do it for any reasons. When I came up with June and I think is a good idea for us to talk about is you know we're sitting here and and and acting all high and mighty. As it relates to this discussion about Social Security in the back the matter is we have access to tremendous resources on this topic whether the courts are now ski. Who worked for the departments of security for 37 years or whether it's Chris Farrell was a reporter for Bloomberg we have access to a lot of data. What I would like to do is make this information on Social Security Tips to maximizing -- worst Social Security benefits I'd like to make it available to our listening. I think it's they I think it's important. You know people refer to it I think some 97 -- as areas of securities of Ponzi scheme this. I disagree with you respectfully -- disagree with you but you know -- more importantly. Please educate yourself on Social Security Call this phone number it's 508591. 5444. Asked for the guide about Social Security tell the I would pay -- wanna learn more about Social Security Barry seems to know a lot you know why I read a -- I studied this stuff every day it's what I do for a living. 5085915444. Is the number you should call. Call them. Tell -- you're listening to the financial exchange and you want to learn more about how he can maximize your benefits. Out of Social Security I think you'll be glad you made the call I know I was glad when I read the report on Social Security Maybe a more informed consumer. 5085915444. Up next Sean Kravitz he's the president of a hedge fund. That has been trying for
Automatically Generated Transcript (may not be 100% accurate)
Well Lucy coffee cart in the first hour in will be -- dance card in the second hour just lots of stuff to give away -- generous June is hard at work. Yeah I'm so excited about this because you know you can put the gas in the car and -- get a period that we do what are extra money anyway right until at least -- to do. They our guest is Russell croft is a portfolio manager that's a mutual fund manager joining us today on the financial exchange Russell welcome to the show aria. Are very thanks Adam. They tell us about your mutual fund ultimately you know eve it's a good name of it is the value fund but journalists what's your investment objectively -- try to -- it. Sure some. The crop valued -- that they are value armed with a contrary and -- like tobacco companies you know sixty cents on the dollar holdup for the long term. And we really we look at value in three different ways that contrary -- -- -- there are out of favor and -- not. About Wall Street like catalysts docks where. There might be a catalyst it's not really take into consideration in management change or acquisition where we think the company can really move forward. And we like wrote -- -- discount priced stocks where. Not your typical value areas of -- the technology Intel Compaq. We take the multiple like we'll -- but the growth rates are you know long term or secular we think the company's market credit form. So give us an example of a contrarian docket because. Chair we started a couple of you know corporate auto supplier trucks supplier you know -- that not only six times next year's earnings. This new management there they're really focused on margin. And we just think this stock is you know very undervalued catalytic global companies slowed down and -- stocks like that. An and our brief or be like Southwestern Energy yet. Natural gas company and the fact commodities it will hit -- stuck with -- we can natural gas as well important long term. Part of our energy issues here in the US. You know I was looking through your list of stocks this morning on line I didn't see any bank stocks that you stayed away from the financial sector. We elect their -- financials we don't and on the bank Gary are we more like kind of concerned about it things. I like -- we think is very cheap. And we like to combat life on the life insurance side you know these companies to trade at less than book value -- the do you think -- -- franchises for the long term. About Philip Morse I noticed you haven't quite a bit of a film worsen your portfolio and yet they announced the big stock buyback last week I think it was. Yeah exactly and if so Morse also into the camp but we like the good blue chip companies with great -- they're grown their dividends that are. I'm back stopped and you know it's got a global market share 30% just huge free cash -- like you mentioned the -- all of that stuck -- You know so Morse is one he can sleep well -- for the long term. How about Lowe's says the -- and -- buyer over Home Depot or do you vote on both of them. We just don't Lowe's we deeply can be though is that it is -- it's stuck to probably -- -- And the -- and become more internally focused here which they needed to do but this is another other kind of quality companies. There about Beckham after their stock if they're over the next few years. That cattle chicken way to play it how how can. Recovers a little bit better than expected. We can -- realignment in the mid teens and so trading at thirteen actually -- we think it's a you know a good long term value. And -- Yet tyco's one it's yes that -- this split up again pretty round second time in five years -- last and the relative value creation. People probably -- 80 PM -- on security firm and actually the great recurring revenue business. One of our businesses -- controls -- and it's gonna merge with -- there another company. And Errol good commercial and our security business on all these businesses with a particular. Take candidates and you know we can Tyco is that you know gets -- here. How about in the pharmaceutical sector do you have a preference a you know -- there's a lot to pick for him. Hillary give me maybe your top two picks in the pharma sector. Sure you know we like mark a lot. You know about four point 3% yield which is great in this in this agent. You know tenure where it is and if we can -- a very good pipeline the next couple years and -- that these companies -- gonna grow like they used to -- so big of course but you know it could grow earnings of 9% strong pipeline and they're buyback you know a lot of stock as well on the it and this is what is growing national. Lexmark. And that come on the other side which is you know partly in a lot of farmers we'd like changing a lot and again that one yeah and it helped dividend yield. You know about three point 7%. They have from the consumer side of the business in the medical device parts to the economy global the first. And obviously they're very in the first two -- geographically -- There's it would probably their top two picks there. So when you buy the stocks -- view whether it's mercker. -- here Philip Morris. How long do you typically hold on to a stock before you start. If we like to hold -- things for. The long term it -- iPhone were trying to hold stocks for three to five years it doesn't always work out that way than -- -- even longer than that. You know overall we think we're very good tax efficient for people. Our turnover I think you guys write about 20%. -- -- -- -- 19% as the last time I looked at it so yeah. And you know other you have fun but our area that numbers in the course for the kidnapping has been 7525%. I think it's kind of what you recent studies about it -- We really want -- they were a long term focused. Well we are. Yup that sounds -- or Russell congratulations and thanks for joining us appreciate your time thank you very much -- Russell -- from the ease the portfolio manager at the crossed the value fund. Joining us on the financial exchange.
