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Ivy Mid-Cap Growth Fund Manager Kimberly Scott on developing an investment strategy for long-term growth.
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Cut through the noise get down to business make some money and that noise coming out of Europe.
You're gonna tune it out right now -- you listen to the strategy of -- Scott she was just named one of Smart -- young guns.
Fund managers that aim high and deliver came as the manager of the IP midcap growth and Waddell & Reed advisors new concept -- set to funds.
One fabulous woman she's here -- Fox Business exclusive -- what is the strategy when it comes to picking stocks and we -- glitter viewers know.
That both your funds over the past ten years have had annualized returns of 6% so you've got a nice sort of history.
Behind you candy pick the -- to go in there.
It's a very straightforward strategy it's focused on picking highly profitable businesses that are supported by sound capital structures good companies.
We invest across the growth spectrum.
We it's pretty flexible and dynamic we like growth whether it's high growth mid -- growth a little bit slower growth but we invests across -- spectrum.
Do care about dividends we if we can get dividends we think a total return components a great head start for shareholders where valuation sensitive.
We like to buy growth companies but we apply a fair degree of valuation sensitivity -- limit your PE I -- finding out the ten kind of thing out but we we look at the Irish income answer with the opportunity.
But we're patient we're long term investors and that's almost.
Sort of out of mind in the investing world today we're very patiently take a long term perspective and we let our investment ideas mature over time.
And get the capital appreciation that comes with letting us opportunities -- your.
I think mid cap growth of fund is up eight and a half percent over the past year -- your other funds -- -- concepts fund is doing just as well in fact even better up 9%.
Let's talk about the names that you like right now and will Begin with -- -- -- that's your first pick.
That's -- for those who don't know is sort of construction and industrial supply company so let's get to about one.
So it's a great example of our process and our strategy and it's been and the -- for over ten years it's been in the fund since we started managing the fund that's unheard of that you like -- it's at a halt on Friday hitting all time high if if not just 52 because its all time high -- -- you get in the wind did you say I want the stock in the fund well rebounded cents.
He had since 2000 -- and and it's it's band we've we've added to it over time and it's the kind of company that it it's a great example of everything we do highly profitable business very -- sound capital structure no debt great management.
Just good fundamental opportunity continue to grow their business and deliver deliver earnings and cash flow that we like shareholders -- that -- -- was twenty -- little bit richer than I would imagine that's -- I you don't care records so it's working for -- -- I wouldn't say we don't -- we -- pay attention to that -- and we do have to manage the position sizes around your next -- is -- -- ticker symbol -- -- I I like this company because it it makes the membranes that separate batteries -- would've -- right back and thinks it's great because they are exposed to a growth area across the -- to electric cars.
They make the -- the separate material that makes batteries work in an electric vehicles they also have a legacy business and separate us for lead acid batteries and also batteries in consumer electronics like.
Cell phones and iPad so they have a nice base business.
That's funding the growth of this faster business and the lithium ion batteries for electric vehicles and it's it's people not trust that.
That whole.
Growth environment so the stock's not selling out expensively and we just we like the long term opportunities -- -- -- you think eventually leave the electric vehicle would storm will take this country at some point whether it -- -- -- a huge way or not it's it's kind of like Apple Computer going from a 3% -- computers to 6% -- you double your exposure and that's a big boost for anyone business.
And it's not just all electric vehicles it's electric vehicles that have.
Their hybrid electric all the way to full electric -- across that spectrum miles from electric vehicles to used vehicles your next -- is CarMax finally am actually love CarMax.
Carnac Buffett buy this one awhile back I know that he did I don't know I don't know I thought got into the used car business I don't think he did -- high to get to.
That the recession is something he would -- -- CarMax is a great story because it's doing something it's creating a better opportunity for consumers to do something that they hate doing it's a better.
Way to go and buy a used car you can also sell your car to them you don't have to just -- IPO by a car you can sell a car and then they'll put it into the wholesale market or in their retail stores.
They have great algorithms -- for pricing their vehicles they're improving the way they put a vehicle on the -- what it cost to put on the -- for.
In they have a lot of growth in front of them just in terms of trying to consolidate very fragmented market their jumped 13% over the past year that I spooky right now.
It doesn't just a four billion in debt where you well if the debt is its debt related to their auto finance business so it's legitimate debt.
And they make a good return on auto finance business.
Varian Medical Systems this is equipment for tumor treatment.
-- yes you like this is your fourth -- we like this wanna live it's and it's another very big position for us.
This is just -- well managed company that they're the leaders in technology for integrated systems radiation therapy for for cancer treatment.
And they have a product cycle that is.
Replacing a lot of -- legacy systems here in hospitals in the US and then they're selling.
A new systems into the developed markets so it's it's it's a big market it's very technology driven again a well managed highly profitable company -- Question about your funds you know as I was looking at the top ten holdings in each of them the -- fund and to the GA AX taught that the top names.
There's a lot of crossover -- -- both halves.
Cerner folks have window.
Right both have sun surf and Henry -- there managed exactly the same they're distributed in different channel that's it that's simply that.
Yet one does slightly better than another year for you well that is that that's dependent on the that flows into the -- what the -- what the level of cash is fighting has a little bit more cash than new -- this has had the position -- might be slightly different but for all intents and purposes -- manage the -- you were a -- on our viewers to know this kings of microbiology.
Major in college and now she's managing money and -- you pick a name like Henry -- which is medical products and pet products for the for veterans -- sector.
We have covered that company for a long time.
People saying not so sexy if you look at a ten year chart and I think every time great return -- -- stamper and the manager -- the CEO Steve Paladino for the -- Paladino.
Month after quarter after quarter after quarter they break and we make great progress -- years that's what we do we try to find companies like that they can just keep delivering returns to shareholders who don't have to sit there and our point is when you look at somebody like -- who's doing the hard work and studying these names for you.
Doesn't have to be the sexy thing in the world to -- to because right and well managed and be patient.
-- -- -- -- -- -- May be -- -- you -- ten year chart of Henry Schein.
It's in both of Kim's funds she's got two point nine billion in assets under management one of Smart -- young guns were thrilled to have come back.
Appreciate it thanks -- those.
