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Artio U.S. Midcap Fund Manager Sam Dedio on the outlook for the markets and why it has become more difficult to maintain a long-term strategy for inve...
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Seems to be at least a barrage of seemingly never ending invest in opportunities coming down the road.
-- giving you whiplash when people say on the one hand by this on the other -- that we'll send CDO was the manager of the RD OUS mid cap fund manager.
Of the RTS US multi cap fund.
And I want to listen to you because you -- outperformed not just year to date the markets but also the past three years.
For example -- mid cap fund a 32%.
So hot -- you're standing here I think this is a real opportunity for both me and our our investor viewers.
How do you view the opportunity to buy stock -- -- turn them turn your head the other way for the next seven years seven to ten years of sort of buy and hold approach it's.
Actually becoming more difficult to do that because -- lot of pressure -- lot of information that comes out daily to make decisions on so you that you face these this is entries very often as the PM.
We have to make a decision whether or not that information is relevant or not for the long term investment thesis of the companies were not interested in investing and so it's a daily battle.
Were you getting heavily into equities in October November December when.
Europe was -- the markets everybody was so scared because a lot of people came off.
Whoever world was and they were scared to death at that point now you look at you say that would have been the time to have gotten men is now still that time.
22 part 22 part answer to that yes we were getting involved and back in October November of 2000.
Eleven -- kinda felt like 2009 the -- version.
Right and bargain of 2009 right we started to get very -- where you we were secretly hoping for some even more compression on some stocks were looking at but.
We did find diversification.
And multiple sectors to get invested and to really diversify our -- -- just take advantage of that opportunity.
Fast forward to today it seems like the economic data starting to converge into -- more of a positive bias.
We'll see would companies report when they start to report earnings next week for the first quarter and we'll see what the guidance -- Here's your asset allocation your mostly of course in the United States but let's sort of break that down I've really wanna know but -- win the -- is strong such -- October November.
What area did you say now I'm ready to -- -- -- there.
Typically more cyclical stocks.
Whether it's industrials or consumer cyclicals and some of the more cyclical technology stocks like semiconductors those are typically the areas I would go.
Looking for ideas.
Consumers stocks examples industries -- -- retail industrials it would be capital goods.
And in technology would be semiconductor.
I that I want to underscore this point to our viewers that if you're paying somebody to manage your money or your paying a fee in a certain fund.
They darn well better have performed because year to date the markets are up here's what you've done here to date your mid cap up 13% your multi cap up eighteen point 5%.
To what do you attribute that we're showing some of your top holdings and looking at names like when that happened you also are going to name.
4567.
Different names coming up in this hour that you really like right now how do you pick a -- how -- -- -- now's the time to buy that.
Right at -- global and and our US -- process we really focus on free cash flow generation.
The three free cash flow generation relative to the earnings the economic earnings they generate -- to to the accounting earnings is very important.
For us to understand the difference we want companies that generate the free cash flow every invest new businesses with her own internally generated funds have high quality of earnings.
And more importantly.
We'd like to find companies or products or services that change the behavior of the consumer whether it's of consumers spent hundreds of business that's really don't care.
Just trying to find companies that really have -- differentiated product or service.
-- sounds like Buffett find a company that has that boat.
Of competitiveness -- their best in class second best in class and nobody else can do what they do -- offer what they offer are.
