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Andrew Green : A Contrarian Manager Bets on Growth
Submitted by admin on Thu, 01/04/2007 - 13:43
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It's the end of an era. Andrew Green, one of the best mutual fund managers of the past two decades, finally closed his funds to new money. London-based Green, who works for UBS' Global Asset Management division, decided that $8 billion was about as much as he could handle if he wanted to continue to beat the market. Over 23 years he's turned a $10,000 investment into about $360,000 -- compared to just $95,300 for his benchmark.
How does he do it? Green succeeds by doing what so few fund managers do these days. He bucks trends, ignores fads and shuns traditional sector weightings and allocations. Instead he calls himself a "deep-value contrarian." He looks for shares that are out of favor with investors but where he sees a catalyst that can bring them back into demand.
It's the equivalent of a savvy fashionista who shuns the ludicrous prices on Fifth Avenue and instead picks through the bargain bins looking to grab next year's hot item on the cheap.
So what's he buying now? In a word: growth. Green, in his latest missive to his investors, says he's raising his stakes on selected technology, media and telecoms stocks. He also sees "interesting opportunities" in certain retail and drug companies.
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