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-- really you're welcome what started it all -- the existing home sales number for the month of August.
That number jumped seven point 8% housing starts in the US climbed 2.3 percent in August.
So -- now the time but to be buying or selling the housing sector whether it's a home builders -- the suppliers.
Spending the last hour of trading with us is bill hedge portfolio manager at -- & Associates and you also broaden the opportunity fund over Royce which is doing.
By the way very well up 19% year to date.
You -- early.
On -- the home builders -- now what are you doing with them.
So as -- said we were early that it wasn't just the builders we did the sort of landscape with everything that was -- and home building with a refinancing them and -- them.
Roofs -- you name it went into get into something we started.
-- in some of these things in late 08.
Have some false start -- -- you were pretty got we were pretty well.
We thought I would very very cheap.
Yet to make a bet that you'd never get -- recovery -- them to beat him in a situation that would be worse than they were.
And what we found.
In this turn around like we found in the same thing in the back and 03 with that detect turnarounds.
Was at the managements of these companies that are really fantastic job of of surviving if you will of doing what -- I would do -- our business slowed hoarding cash not spending money.
And being ready for when the sun came -- again.
Well that you see that that the past let's say year nod but certainly it's been wonderful for his name right but -- scaling back almost of them are up over a 100%.
We don't know what the future brings obviously.
We have about close to 15% of the portfolio.
In housing and housing related -- 15 -- about one -- -- we're down probably about 910% now.
They've been great performance our our strategy our process.
Is one and is constantly rotating out of the winners.
This is that is the lesson we want you to learn when we bring people like bill had -- of that is you have to be very gutsy have a strong stomach.
Get in just as everybody's running out -- maybe a choppy ride obviously.
But then just as everybody's Hornbeck and you try and get out at the same if I'm not recommending timing here but what's the next home -- trade meaning.
The next opportunities that looks scary right now but you feel.
Is time to get it.
Probably our favorite area that we're working around his natural gas right now the commodities trading at an incredibly.
Especially when you look at it vs oil we have some names here that you what to look out.
Let's talk about the okay we -- did in the -- commodity itself we like a company called Mac -- which is.
Sort of a different type of -- a very very deep water exploration -- her down on the gulf some very experienced hands running the company.
Deeper wells than anyone has ever tried before.
But when they get -- being.
That should be right about the time we think you could see some strength in the commodity -- as well our preference is the place right is the service -- so we don't Newpark Resources we and Basic Energy Services Key Energy Services.
And these are all companies that help with the -- -- A service such -- well servicing bringing trucks and bringing labor and bringing sand and water -- When you have a guy like bill pensions well what you also have hard -- stop -- sometimes there are some short circling them but right the background exploration 22% of the -- -- shortage.
I don't some of the other ones as well you just she just it's something to be -- -- because there are some nefarious.
People were that you are not bad but they're -- shorts are healthy part of the market but when you see that basic energy is 29% of the float short I just like to left right about event.
But you still believe -- them.
Yeah I mean these these companies traditionally carry -- the healthy amount of debt.
-- and very cyclical industries you just saw a big earnings miss by a lot of these companies last quarter.
As people moved assets from gas to oil consumed -- -- liquids as -- called C did have a lot of.
Jarring movement on the earnings front the -- are you seeing the trend here people -- -- and it's scary right they've missed on earnings but he says now's the time up as a whole bunch of other ideas coming up in just a minute.
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