Also in this playlist...
This transcript is automatically generated
-- -- OK so who among us looks at these apps for kids -- hottest app for children right now to learn the US states all kinds of facts and figures about the United States.
Is called stack the states you click and you drag.
Well guess what.
Billion dollar fund manager is stacking his stocks by states and his fund is breaking through the roof Randy Bateman is Huntington -- chief investment officer.
He's joining me now from Austin, Texas to share some of his paper it.
Fundamental plays in his stack and -- -- by.
I know -- those days because my son absolutely loves it but I've looked at that I mean at least so that's what he's doing he's -- stocks by going state wise how does that work.
We know we created this fun it's a small cap fund and we did so with the thought that perhaps there.
In this small cap arena there could be a geographic advantage that competitors.
Might be able to in their business environment be able to outperform other companies that maybe don't have a favorable geographic.
Opportunities so we look at states -- have immigration into the states.
Companies that are close to there -- -- the raw materials.
States that perhaps don't have income taxes are -- -- are favorable business climates.
Those are the things that we're trying to look at and we certainly overlay our normal disciplines in the investment process.
But it certainly does make some sense if you've got a location -- act.
Aptitude that you can look at and provide that -- mental advantage.
Well you talk about it as a geographic overlay for picking stocks let's first -- macro when it comes to the United States we made a map here and the states that you feel gives -- certain companies where their headquarters are based an advantage certainly.
Are the following an in there I was a little surprised to see California because everybody -- Stuart -- Beats up my home state on a constant basis saying.
Well business is want to leave there -- why why is California within this group that includes North Carolina Florida Texas and Virginia.
Certainly -- what we're looking for of those companies that are situated where they can have a competitive advantage.
And one of the competitive advantages that California has its intellectual resources in the technology sector so.
If you look at the Research Triangle North Carolina if you look at the Palo Alto in the Silicon Valley in California.
You've got the intellectual talent that's there and you can tap that talent particularly if they're -- universities without having to include.
Not cost the the individual so certainly it makes some sense to look at California and in North Carolina as technologically advanced -- You're your fondest beating the S&P it's up 19%.
-- -- your verses thirteen -- active and change percent for the S&P 500 I would get to the names you're picking today we just showed some -- here.
Biggest holdings but these names are different so you've got.
It in essence your focus -- on agriculture and each of these is something that may be works into the step -- buy stocks and states -- bella CAD.
Let's talk about this.
Okay as as you just stated we do like the agricultural community in the rural community is experiencing a lot of cash flow coming in from my increase crops.
And farm income but also from fracking and so.
How are those rural communities going to be able to spend that discretionary income.
You know it cost a lot to put bricks and mortar and a variety of locations and and the rural environment.
So what's best way to tap that is due catalog companies and Cabela's is certainly gives an upscale hunting and fishing and outdoor life type of environment.
It's got a 7% of the float -- I was like to just point that out for our viewers and has there are short circling around but let's go to Tractor Supply company which is TS EL up 13% -- PE of nineteen.
And and maybe we can throw these in together Lindsay Corp.
L and and and that one is up about 36% with -- PG of seventeen.
Now we've been -- both of those two names for a good while now Tractor Supply is growing in leaps and bounds in that community.
They are involved in the bricks and mortar aspect of tapping that consumer discretion dollars but -- open -- a lot new stores and but there.
Inexpensive stores and very quickly able to move from one geographic.
Advantage to another geographic allocation.
With regard to Lindsay Manufacturing there and involved an irrigation equipment.
And as you know we had a significant drought in the midwest this past year I think it's a lot of farmers' minds.
To go ahead and extend the capital to make sure that they have adequate resources to allow their productivity to be enhanced.
Randy stacking his stocks by stacking the states it's great to see you -- -- welcome back to the show and I didn't have you.
Thank -- not ready statement is beating him isn't he with his fund Huntington funds chief investment officer we will put his picks up on FaceBook dot com slash -- claimant check it out and why.
Filter by section