Marvin Schwartz has been in business for 50 years. He joined Neuberger Berman in 1961, toiling in the research department for $1.25 an hour. For 50 years, he has stayed with the company and in the process has become a legendary value investor. He founded Straus Group within Neuberger Berman with a team of value investors.
Information on his is rather rare. Fortune had this one article back in 2003, stating that he beat S&P 500 for 29 times during a period of 37 years. One of the funds Schwartz manages (are there any other?), Neuberger Berman US Equity Value Fund returned 13.60, 2.32, -072, and 3.28% in the past one, 3, 5, and 10 years respectively. And I do not have the fund’s earlier performance data, but a S&P report (see here and here) states that Schwartz has been the fund manager since its launch. The fund size is about $1.3 billion and Schwartz and his team manage about $11 billion in total. I do not know how representative the fund is to his other and overall investment.
I am not trying to sell you this particular mutual fund, as it is available overseas. Here is the fund management style according to the S&P report, which may sound familiar to value investors:
In a long interview last week, Schwartz presented a bullish case for the US equity market and also talked extensively on some of his top holdings such as IBM (IBM, Financial), Travelers (TRV, Financial), Anadarko Petroleum (APC, Financial), Hewlett-Packard (HPQ, Financial).
As you could imagine, he likes every single one of the stocks.
Watch the investment advice from a 50 year veteran:
Information on his is rather rare. Fortune had this one article back in 2003, stating that he beat S&P 500 for 29 times during a period of 37 years. One of the funds Schwartz manages (are there any other?), Neuberger Berman US Equity Value Fund returned 13.60, 2.32, -072, and 3.28% in the past one, 3, 5, and 10 years respectively. And I do not have the fund’s earlier performance data, but a S&P report (see here and here) states that Schwartz has been the fund manager since its launch. The fund size is about $1.3 billion and Schwartz and his team manage about $11 billion in total. I do not know how representative the fund is to his other and overall investment.
I am not trying to sell you this particular mutual fund, as it is available overseas. Here is the fund management style according to the S&P report, which may sound familiar to value investors:
This value-oriented process emphasises long-term absolute returns and peer group outperformance. The approach includes industry views and bottom-up stock selection. Via an intensive programme of company visits and analyst meetings, the team monitors around 350 mid- and large-cap companies, looking to identify stocks with strong long-term earnings and cashflow growth trading at a substantial discount to the current market P/E ratio.
The team focuses on the quality of the business and the balance sheet. The team also actively seeks managers prepared to unlock shareholder value via restructuring, M&A, or share buybacks. Some 40-60 holdings are selected, with specific stock risk being controlled by seeking a large safety margin in valuations.
The resulting concentrated portfolio reflects the team's long-term thematic and strategic macroeconomic and sector views. While it is constructed without reference to the benchmark and deviations from the S&P 500 index may be significant, the manager is very risk- and index-aware, and evaluates these top-down themes continuously.
Turnover tends to be low, in accordance with the long-term approach, and the fund is kept fully invested
In a long interview last week, Schwartz presented a bullish case for the US equity market and also talked extensively on some of his top holdings such as IBM (IBM, Financial), Travelers (TRV, Financial), Anadarko Petroleum (APC, Financial), Hewlett-Packard (HPQ, Financial).
As you could imagine, he likes every single one of the stocks.
Watch the investment advice from a 50 year veteran:
