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Baird Midcap Fund Senior Portfolio Manager Chuck Severson on how to benefit if China chooses to stimulate its economy.
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Watch that closely -- -- -- mid cap fund to be heard about the -- five star rated outperforming.
Its benchmark the Russell midcap growth index year to date.
Might not raise everybody's eyebrows but this might the fund manager is now betting on a -- of sectors that are scaring away more than a few of his peers.
Joining us now on a Fox Business exclusive from Milwaukee Wisconsin is Jesse Anderson.
Their knit cap fund its senior portfolio manager of what I want to let everybody know -- -- about I believe the minimum to invest in your fund is 25000 dollars right.
That's correct that's okay let's let's talk quickly about the performance.
Over three years you're up about 23% against five star rated so you've done quite well what's up first and -- always like to ask really successful fund managers.
How pick a stock what do you look at -- and and pull apart and say this is one I'd like to -- and put in the fund.
Well we like to invest in -- leading businesses once that especially in the growth space that -- grow and out profit their peers over long periods of time.
So we like good cash flow generators.
Keeping their balance sheets couldn't clean and again with a good long term thesis do you care if there's high percentage of the float that's being shorted.
Well sometimes that's presents challenges in the very near term but.
Over time that shouldn't really bother us.
The chessboard lately is becoming more complicated when it comes to your job I'm short to many of investment -- jobs as he moved the -- around the chessboard.
Where are you adding to positions right now.
Well what were really position today for.
A lot of different outcomes with what's going on in Europe things getting worse there.
China slowing dramatically.
And our economy sputtering a little bit here.
So we've remained rather balanced across all the major sectors stand.
If anything we've about a year ago took our major sector bets off.
And reduced exposure to consumer discretionary industrials and technology.
And move that money more to financials.
Health care the more defensive areas and that was about a year ago correct that was about a year ago and were still there today.
You you have some fear about Europe get and I found this fascinating one of your picks -- he really like right now.
Is actually out of a country that and that is in the eurozone and and this company's called iconic trades is an ADR American depositary receipt IC LR.
They do what clinical trials on drugs and they are an Irish company that's exactly right and they've got a very nice backlog of business with the major pharmaceutical companies.
But you're also looking at it is as my guess than a health -- is a globally exposed because we know that there's a lot of uncertainty about what may happen here with our health -- ruling.
Well sure that the the clinical trials are really need to go on with all the global drug companies.
They perform those all over the world and it really hasn't stopped.
The identification of new compounds and we think -- -- can be able to grow profits very nicely how do you feel about the industrial sector now.
Well industrials it's clearly it's clearly a cyclical area.
But we think you need to be prepared in the case that.
What happens if Europe does come up with a credible solution and I think more relevant what happens if China.
Rather than having their foot on the brake to slow their economy what happens if they take that off.
And actually become more -- would have there's a number of our businesses that have wonderful exposure to other us the world including China.
Seat that is a possibility we want our viewers to be ready for because China not.
Purposely slows down its economy does it not so it can purposely started to speeded up and let's talk about some of the industrials that you feel might be best positioned at the moment.
To really do well will begin I guess what Rockwell you could look at that one that's down 25% over the past year but you believe it might be a real.
Well Rockwell's a wonderful business they've they've manufacture -- factory automation products.
Which really has helped the efficiency and and profitability and productivity on the shop floor.
But also importantly.
Connects with the management information systems to help.
Companies run more efficiently to schedule production better.
And also to reduce labor on the shop floor.
That's a company where people will pay two of course become more efficient -- except money I'm sure joins global as another one here's one that's also been hit but a little bit more downside here down about 43% over the past year.
Right well with with joy you really have one of the two.
A big domestic manufacturers.
Mining equipment and it's really up a pure play.
And on the consumption of raw materials.
So again once China re accelerates their economy they're certainly gonna benefit from that.
They have vast resources.
Especially of coal but then -- joy also -- wonderful customers around the world.
That for copper mining aluminum mining and what have you over it.
-- -- chuck has about 94 billion in investments of the mid cap fund BMD I X.
Five star rated good to have you chuck thank you very much.
-- -- -- person Baird midcap fund -- senior portfolio manager out of Milwaukee not Wall Street right I mean it.
We can go anywhere in this country and find really Smart investment people for.
