Thursday, May 25, 2006

Value investing from a Mutual Series Fund veteran, David Winters

"Think like an owner, not a renter," advised David Winters in his talk on "Value Investing" to the Boston Security Analysts Society on May 25, 2006. By that he meant that you should be a long-term investor. Today Wall Street is dominated by renters, he added.

Recently, he's mostly finding value outside the U.S. Especially in Asia, where companies:
  • have become more conservative in their capital structure
  • are often trading at a discount to asset value, and
  • are growing
Such Asian companies are attractive relative to the "cigar butts" of value, which only have "one puff" of growth left.

Winters is bucking the trend toward hedge funds. He has set up a mutual fund, the Wintergreen Fund, which has already attracted favorable press. He has, or will, set up some partnerships aimed at endowments and wealthy investors.

You can read a lengthier account of his March talk to the New York Society of Security Analysts.



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