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Think about what was going on in housing land waved back in 2006.
Think about it go back to that point just about the height of the housing froth taxi drivers flipping condos in Boca Raton.
Everybody thinking -- never and well guess what.
Some of that confidence inspect most of it has come scratching and climbing back -- got this indicator the NAHB home builder confidence.
Jumped eight points in June to the highest level since 2000 yes six.
-- Holland -- -- camera fund's portfolio manager.
He has like these housing names he saw this coming he's got some recommendations on how to make money.
On the recovery attempt look at looks like a recovery but certainly a lot of these home -- names.
Com down a little bit lost that electrical energy over the past years is there's still an opportunity.
I think so Liz and I think the reason some homebuilders have been marking time is despite very strong financial.
Results super worried about the back up and interest rates.
And what that means for affordability.
But as you look at the cost of a thirty year mortgage.
Improving housing prices and the slow but steady steadily improving job market we still think.
The group can move higher -- but obviously not a homebuilders are are created equal.
That's absolutely true I I agree with you on that but let's explain to people what they should be listening to you your fund which is -- champ broke.
Diversified equity fund year to date up 12% but I think really impressively it's it's -- the S&P over the past year up 24%.
And -- annualized returns over three years about 15% so he made some good decisions.
On the macro level tell me what you think.
The fund is very much US centric and you do have names that are popular like Johnson & Johnson.
Apple and Amazon again there's a told brother's name in there -- Brothers there obviously you'd like to before it's -- down just a bit since you were last with us in March.
What do you believe that hole is the name to have in the portfolio.
He had told Brothers is the second largest position within consumer discretionary within the -- camera diversified equity fund and we think it has all the characteristics you want to see in.
Home builder today.
And that it's very land heavy tens of thousands of -- directly under -- control or optioned.
So they've got the dirt to participate in an inflationary.
And you need that you don't be chasing real estate at this point in the cycle -- -- very well positioned in there are so focused.
DC to Boston which is a very land constrained.
Market so we think are also in.
The right part of the country as well.
With all of these names one thing.
That's a common -- running for them is that they're all US based in your fund -- missed most of them can we infer from that that the US is sort of put.
The best thing going out there do you like anything that's.
That's elsewhere that's overseas.
On balance you know and with the S and chairman -- on equity fund its focus on US stocks within that big universities and -- soon tech names materials companies industrial names that have much more revenue exposure.
Outside -- contract.
But on balance we think.
Domestic -- -- industry as a consumer.
And that's where you -- be because you do have this ongoing recovery in the economy and the turn in housing is a big big part of its and that's how we've positioned the portfolio.
-- -- positioned it well as we said it's doing rather well you've got 2.2 billion in assets under management total not necessarily the fun but.
I came up and -- the number 33 jams that you really like right now that people.
Can make money on in the next couple of months if they invest in them let's begin with your first name.
I find this interesting it is a real estate play but not necessarily in actual real estate it's it's -- -- that invests them well it's.
-- -- Redwood Trust is company that we know them both yes and Pamela Smart cap fund and then the diversified equity fund to refocused on.
Jumbo mortgages and commercial.
Real estate as well very tenured management team the stocks come under pressure again as rates have backed up despite everything in the -- space has sold off.
But we think they've got a platform to drive loan origination we also think real estate will continue to move higher.
As opposed to lower so what they've already invested in should be worth more over time.
I cannot believe Tammy didn't mention what everybody wants to know -- -- -- and that is the dividend yield it's it's very impressive.
-- the -- it's approximately 6%.
And what's impressive about our WT is within the last six months or so they raise the dividend.
After not having -- did really for four years as a weathered the downturn a lot better.
Then -- -- so with the pullback in the stock the -- the yield has jumped.
Measurably and and the cash flow we think is there to support that dividend going forward.
Okay we know that the auto industry does well lately it's certainly it's it's not only matched the housing industry it's perhaps done even better since the yellows.
Since of course what's been happening in the past couple of years but you what the name that's related to autos but it's not an auto company.
Yeah monro muffler and brake is one of the largest positions in the -- -- small cap fund.
And they've -- north of 800 undercard care facilities under control and they're consolidating.
An industry that's very much mom and pop.
Driven and so those economies of scale creates tremendous buying power for them we had a really mild winter again.
And as a consumer has been less than.
A -- and they've put off some of those purchases but sooner or later you have to places -- except we have to replace those tires and they're just taking tremendous.
Market -- is a very well run company.
I just want our viewers to -- 22%.
Of the -- a short but that's not necessarily reason to stay away from it but we like to let people know that the shorts are circling.
-- need one Mike was running out of time on -- such a third pick WH yep.
Drug retailer in the country they've done deals with alliance boots on the season AmerisourceBergen domestically.
Which create tremendous economies of scale should lead to greater market share.
And better Mars is going forward.
OK although their sales have been flat sequentially we just like to point that out as well good to you -- thank you.
Thank you is Tim Holland asked and camera fund's portfolio manager.
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