The saying “one size fits all” is not tossed around in the world of investing very often…  and that’s for good reason. Risk appetites, investment horizons and financial goals mean portfolios can — and usually do — look different from person to person. Going a step further, each asset in those portfolios carry their own quirks that require tailored analysis. #-ad_banner-#​With the wide range of products trading on public exchanges these days, it’s important to know that a worthwhile metric in one industry may not reliably apply to the next. One shining example of… Read More

The saying “one size fits all” is not tossed around in the world of investing very often…  and that’s for good reason. Risk appetites, investment horizons and financial goals mean portfolios can — and usually do — look different from person to person. Going a step further, each asset in those portfolios carry their own quirks that require tailored analysis. #-ad_banner-#​With the wide range of products trading on public exchanges these days, it’s important to know that a worthwhile metric in one industry may not reliably apply to the next. One shining example of this is EPS, or earnings per share.  Many investors use EPS quarter after quarter to rate their holdings, but if you used that metric to value one industry in particular, you’d be way off base. Real estate investment trusts have been a cornerstone of my trading portfolio for years now.  While you may already be familiar with REITs and their inner workings, would you know how to properly value and compare them? Correct REIT appraisal centers on a key metric known as funds from operations, or FFO. Read More

Like many cash-strapped investors just starting out, I was convinced I could “maximize” my tiny investment account by dipping my toes into the micro-cap end of the stock market pool. Did it make me a millionaire overnight? Put gently: not even close. #-ad_banner-#​I was left with a dwindling account balance and worthless shares of companies that had long-since imploded. In the investing world, we call the sacrifice of those beginner funds a “grudge” account.  I prefer to think of it as tuition paid into an investing career that would live on much… Read More

Like many cash-strapped investors just starting out, I was convinced I could “maximize” my tiny investment account by dipping my toes into the micro-cap end of the stock market pool. Did it make me a millionaire overnight? Put gently: not even close. #-ad_banner-#​I was left with a dwindling account balance and worthless shares of companies that had long-since imploded. In the investing world, we call the sacrifice of those beginner funds a “grudge” account.  I prefer to think of it as tuition paid into an investing career that would live on much longer than most of the stocks I traded back then. Although my initial investments were long-gone, one thing that did remain was a passion for finding healthy companies with smaller capitalizations and real business plans.   Fortunately, there are some real gurus in this space — one, in particular, reigns as king. Chuck Royce, of Royce & Associates, has over four decades of experience in capital markets, making a name for himself in primarily small-cap investing. His methodology seems simple: find stocks that are relatively undervalued with low debt and above-average returns. Read More

Last week wrapped up the final week of Q2 earnings. For many Wall Street firms, that means updating investment models, revising outlooks and adjusting price targets on companies that recently reported. One research and ranking system in particular has a storied following on Wall Street: Goldman Sachs’s Conviction Buy List. Whereas other firms may top out with a “buy” rating for stocks deemed worthy of investment, Goldman Sachs goes one step further to single out stocks they feel have a strong chance of beating the market. #-ad_banner-#​Typically saved for the firm’s clientele, the list… Read More

Last week wrapped up the final week of Q2 earnings. For many Wall Street firms, that means updating investment models, revising outlooks and adjusting price targets on companies that recently reported. One research and ranking system in particular has a storied following on Wall Street: Goldman Sachs’s Conviction Buy List. Whereas other firms may top out with a “buy” rating for stocks deemed worthy of investment, Goldman Sachs goes one step further to single out stocks they feel have a strong chance of beating the market. #-ad_banner-#​Typically saved for the firm’s clientele, the list still manages to reach the public through various news outlets, which often means a quick pop in the stock price as investors catch on. Given the firm’s reputation for top-tier equity research, I like to keep my eyes out for additions and deletions as they occur.  This summer has given way to a number of new names added to the list. Let’s see how they stack up against each other. The Valspar Corp. (NYSE: VAL) landed on the coveted ranking just a few weeks ago, making the jump from “neutral” to “conviction… Read More

Smart investors are always keeping their eyes toward other frontiers, turning over stones to find value where others may least expect it. For many, that means unearthing lesser-known opportunities outside of the developed world and looking to the emerging markets of Europe, Africa, Latin America and Asia.   #-ad_banner-#As a fan of international investing, I’ve spent considerable time digging through BRICs (Brazil, Russia, India and China), MINTs (Mexico, Indonesia, Nigeria and Turkey) and everything in between.  Through all of that research, I discovered one country that not only lacks the coverage it deserves… but presents a potentially lucrative opportunity.  For years, South… Read More

Smart investors are always keeping their eyes toward other frontiers, turning over stones to find value where others may least expect it. For many, that means unearthing lesser-known opportunities outside of the developed world and looking to the emerging markets of Europe, Africa, Latin America and Asia.   #-ad_banner-#As a fan of international investing, I’ve spent considerable time digging through BRICs (Brazil, Russia, India and China), MINTs (Mexico, Indonesia, Nigeria and Turkey) and everything in between.  Through all of that research, I discovered one country that not only lacks the coverage it deserves… but presents a potentially lucrative opportunity.  For years, South Korea has been caught in the shadow of some of its more recognized neighbors like China, Indonesia and Vietnam. And there’s a good explanation: the country’s high degree of economic advancement may have tipped the scales and pushed it out of emerging market territory and into the company of more developed nations. What makes South Korea an attractive investment in my book?   •    Impressive economic advancement – The small country is the seventh-largest exporter in the world and the fourth-largest economy in Asia.   •    High concentration of global tech leaders – Household names like LG, Samsung, Kia… Read More

For some shareholders, Christmas came a few months early this year. With every earnings season comes announcements of success, failure and future projections.  The outperformers are often rewarded with better analyst ratings, boosted price targets and perhaps an increased stock price.  For shareholders, it can mean increased dividends and some extra percentage points tacked on to their portfolios. #-ad_banner-#​But what about those companies that had blowout quarters and now sit on piles of cash? Those focused on boosting shareholder value often turn toward a one-time event to spread the wealth around, known as… Read More

For some shareholders, Christmas came a few months early this year. With every earnings season comes announcements of success, failure and future projections.  The outperformers are often rewarded with better analyst ratings, boosted price targets and perhaps an increased stock price.  For shareholders, it can mean increased dividends and some extra percentage points tacked on to their portfolios. #-ad_banner-#​But what about those companies that had blowout quarters and now sit on piles of cash? Those focused on boosting shareholder value often turn toward a one-time event to spread the wealth around, known as a special dividend. There are a few things about special dividends that make them… special. First, they are usually issued in addition to the company’s existing dividend. Second, the nature of these one-time payments can catch investors, traders, and algorithms off guard, which can result in a burst of buying to push the stock price up once the stock goes ex-dividend. This creates an opportunity to both collect the dividend and squeeze a small gain out of the stock price at the same time. While shorter-term trades like this… Read More

Hedge fund managers are known to risk some of their own cash alongside investor’s money to show they have “skin in the game.” But big-name investors running what are known as family offices, or firms that manage investments for a particular family, take that idea to a whole new level. Billionaire Steve Cohen is a newly-added member to the family office crowd, joining the likes of fellow billionaires George Soros and Carl Icahn. #-ad_banner-#​Best known for his long-tenured hedge fund SAC Capital Advisors, Cohen has been running rings around the market… Read More

Hedge fund managers are known to risk some of their own cash alongside investor’s money to show they have “skin in the game.” But big-name investors running what are known as family offices, or firms that manage investments for a particular family, take that idea to a whole new level. Billionaire Steve Cohen is a newly-added member to the family office crowd, joining the likes of fellow billionaires George Soros and Carl Icahn. #-ad_banner-#​Best known for his long-tenured hedge fund SAC Capital Advisors, Cohen has been running rings around the market for decades. SAC Capital has averaged 30% annual returns for 18 years, according to Bloomberg.com. Cohen’s new gig, Point72, groups and invests more than $9 billion of his own assets together with assets from a handful of former SAC employees. And in the first half of 2014, the fund has already profited nearly $1 billion, according to The New York Times. Although Point72 is a private firm, it is subject to certain SEC guidelines. One of the most insightful rules requires Cohen to report… Read More

It’s probably no surprise that Harvard University has cranked out more billionaires than any other university in the world. What might come as a surprise to you is just how much of that money from wealthy alums makes its way back into the prestigious Ivy League school, contributing to a jaw-dropping endowment of over $32 billion. That stockpile puts Harvard as the richest college in America, with Yale coming in at a distant second (with a relatively paltry $20.7 billion). (In fact, some joke the university is in fact a giant hedge fund with a tiny school attached… Read More

It’s probably no surprise that Harvard University has cranked out more billionaires than any other university in the world. What might come as a surprise to you is just how much of that money from wealthy alums makes its way back into the prestigious Ivy League school, contributing to a jaw-dropping endowment of over $32 billion. That stockpile puts Harvard as the richest college in America, with Yale coming in at a distant second (with a relatively paltry $20.7 billion). (In fact, some joke the university is in fact a giant hedge fund with a tiny school attached to it.)  #-ad_banner-#Nearly $1 billion of that cash is disclosed quarterly to the SEC in a Form 13F, which outlines Harvard Management Co.’s long-only stock and debt positions, as well as some option positions. Because they have a mandate to generate market-beating returns while fulfilling long-term fiduciary responsibilities, university management firms like Harvard’s are particularly interesting candidates for closer looks during filing season.   Harvard Management’s 13F for the first quarter of this year showed a heavy slant toward South America, with an emphasis on Brazil. Were these positions short-term trades to capitalize on the World Cup or rumors that… Read More

Saying that Apple (Nasdaq: AAPL) is tight-lipped about impending hardware announcements is an understatement. However, that hasn’t stopped the rumor mill from kicking into high gear as the end of the summer approaches.   #-ad_banner-#Apple hasn’t made an official announcement, but there’s heavy speculation that the next generation of “i-” products will be released in the coming months, with the iPhone 6 expected to debut in September.  Other offerings expected to make a debut (either this year or early next) include a thinner and/or larger iPhone iteration, an iWatch, and an updated version of the iPad. The exact names and… Read More

Saying that Apple (Nasdaq: AAPL) is tight-lipped about impending hardware announcements is an understatement. However, that hasn’t stopped the rumor mill from kicking into high gear as the end of the summer approaches.   #-ad_banner-#Apple hasn’t made an official announcement, but there’s heavy speculation that the next generation of “i-” products will be released in the coming months, with the iPhone 6 expected to debut in September.  Other offerings expected to make a debut (either this year or early next) include a thinner and/or larger iPhone iteration, an iWatch, and an updated version of the iPad. The exact names and specs of each of these seems to change with the tides, but Apple fanatics and analysts have long looked to one area to discern exact details about future releases — Apple’s suppliers.   My colleague Marshall Hargrave already let you in on one Apple supplier that’s made a home in some big-name investors’ portfolios. The Cupertino, California-based giant has a few more tricks up its supply-chain sleeve however, and the market has high hopes for the two companies I’ve uncovered going into Apple’s next hardware reveal.  GT Advanced Technologies (Nasdaq: GTAT) GT makes advanced materials for consumer products. Apple has… Read More

Even while under the pressure of managing $44 billion in assets, billionaire Ken Fisher of Fisher Asset Management still manages to throw us little guys a bone every now and again. Unlike many of his peers in the hedge fund community, Fisher has a history of filing his Form 13Fs to the SEC earlier than required, typically 20 days or more in advance of the due date.   Why is this a big deal? His early reporting increases the transparency and usefulness of his disclosure, helping investors to better interpret the filing without being too many steps behind.   This… Read More

Even while under the pressure of managing $44 billion in assets, billionaire Ken Fisher of Fisher Asset Management still manages to throw us little guys a bone every now and again. Unlike many of his peers in the hedge fund community, Fisher has a history of filing his Form 13Fs to the SEC earlier than required, typically 20 days or more in advance of the due date.   Why is this a big deal? His early reporting increases the transparency and usefulness of his disclosure, helping investors to better interpret the filing without being too many steps behind.   This quarter was no exception, with Fisher Asset Management releasing its second-quarter 13F just 25 days after the quarter ended (versus the maximum 45 days allowed by law). With this information as ripe as its going to get, I’ve picked apart Fisher’s positions to see where he’s finding high yields.   A broader interpretation of his 13F filing shows that Fisher is still bullish on finance and banking, with a special focus on REITs (real estate investment trusts) for attractive yields. Here are four of his most lucrative dividend picks. Senior Housing Properties Trust (NYSE: SNH) is one of the largest… Read More

With the second half of the year underway, it’s prudent to take stock on how your portfolio performed in the first six months of 2014.  #-ad_banner-#In the same vein, it’s also the perfect time to see where any value or growth opportunities may lie as we go into the end of 2014. One billionaire has decided to make the latter much easier for investors. Mario Gabelli, the renowned value manager and founder of the GAMCO family of funds, took to CNBC last month and shared some of his views on equity markets. With no shortage of commentary… Read More

With the second half of the year underway, it’s prudent to take stock on how your portfolio performed in the first six months of 2014.  #-ad_banner-#In the same vein, it’s also the perfect time to see where any value or growth opportunities may lie as we go into the end of 2014. One billionaire has decided to make the latter much easier for investors. Mario Gabelli, the renowned value manager and founder of the GAMCO family of funds, took to CNBC last month and shared some of his views on equity markets. With no shortage of commentary these days on financial news networks, why should you listen to Gabelli? For starters, Gabelli has been investing for nearly six decades now. He has come a long way since buying his first stock at the age of 13. Now at the age of 72, his firm, GAMCO Investors, currently manages some $48 billion in assets, with Gabelli amassing a personal fortune of $1.8 billion along the way. As such, his experience should cause some ears to perk up when he dishes free institutional research. Fortunately for us, Gabelli mentioned three of his top picks for the latter half of… Read More