Manager: Bradley Radin, Franklin Templeton Investments Style: Value Fund: Templeton Global Smaller Companies Strategy: Utilizes a bottom up approach focused on buying solid smaller-capitalized companies that are undervalued. The portfolio is diversified and covers more than 20 countries. Buy recommendations: New Star Asset Management plc K-Swiss Inc. Chico’s FAS Inc. Sell Recommendation: The Game Group plc Commentary: Mr. Radin sees value in U.K.-based New Star Asset Management. He says the stock is out of favour because of the poor market conditions, a deteriorating performance in some funds and a cut to its dividend. However, he expects the firm’s performance to pick up as the market improves. “Our approach is that we’re trying to find companies like this that basically have a good track record and good future growth prospects, but are selling at dirt cheap prices because the rest of the market is focused on these short-term problems,” Mr. Radin says. “The reason we like this company is, first of all, it’s down 80% - it’s very very cheap. It’s trading at about four times forward earnings and with that dividend cut from 9-pence to 5-pence, it’s still a 5% yielding stock. Ultimately, it’s a pretty good growth business when times become good again, so we figure we’ll get the growth in the asset management business, plus, when investors want to run to this stock again, we’ll get huge multiple appreciation.” U.S. athletic foot ...
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Manager: Bradley Radin, Franklin Templeton Investments Style: Value Fund: Templeton Global Smaller Companies Strategy: Utilizes a bottom up approach focused on buying solid smaller-capitalized companies that are undervalued. The portfolio is diversified and covers more than 20 countries. Buy recommendations: New Star Asset Management plc K-Swiss Inc. Chico’s FAS Inc. Sell Recommendation: The Game Group plc Commentary: Mr. Radin sees value in U.K.-based New Star Asset Management. He says the stock is out of favour because of the poor market conditions, a deteriorating performance in some funds and a cut to its dividend. However, he expects the firm’s performance to pick up as the market improves. “Our approach is that we’re trying to find companies like this that basically have a good track record and good future growth prospects, but are selling at dirt cheap prices because the rest of the market is focused on these short-term problems,” Mr. Radin says. “The reason we like this company is, first of all, it’s down 80% - it’s very very cheap. It’s trading at about four times forward earnings and with that dividend cut from 9-pence to 5-pence, it’s still a 5% yielding stock. Ultimately, it’s a pretty good growth business when times become good again, so we figure we’ll get the growth in the asset management business, plus, when investors want to run to this stock again, we’ll get huge multiple appreciation.” U.S. athletic foot ...