Jeff has been managing the Auxier Focus Fund since 1999, achieving a cumulative 127.71% return versus 26.64% for the S&P 500, and an annualized return of 6.68% versus 1.87% for the S&P, since inception.
Jeff’s aversion to risk and dedication to companies whose fundamentals promise long-term performance has helped him earn consistent returns through a period that includes the worst decade for U.S. stock returns in history. In his first quarter letter, he shares his fund’s current positioning:
“The current portfolio is comprised of businesses that have strong free cash flow and, we believe, the ability to increase dividends. The average earnings yield of the portfolio is well in excess of bond yields. Returns on invested capital are high, while mandatory capital spending tends to be low. Generally our buys are bargain priced, and ‘hopelessly out of favor,’ on the flip side of momentum-driven markets in which IPOs are the focal point.”
He is avoiding Apple (AAPL) and IPOs, as they remind him of 1983, the year he learned the beauty of boring when blue chips such as Waste Management (NYSE:WM) and Pepsico (NYSE:PEP) were stumbling and selling cheap, while 30 glitzy PC stocks went public and soared. Since then, the blue chips have overcome their problems and rose in value again, and most of the PC companies are gone.
These are his top holdings:
|Company||% of Assets|
|Philip Morris (NYSE:PM)||2.3|
|Tesco PLC ADR (NASDAQ:TSCO)||2.1|
|Molson Coors Brewing (NYSE:TAP)||2.1|
|Procter & Gamble (NYSE:PG)||1.8|
|Avon Products (AVN)||1.6|
|Medco Health Solutions (MHS)||1.3|
|Johnson & Johnson (JNJ)||1.3|
|Unilever NV (UL)||1.3|
Jeff is also optimistic about natural gas and believes the recession in Europe could be setting up "a generational buying opportunity."
To learn more about Jeff and his outlook on the economy, read his quarterly letter here. Also see more of his holdings in his portfolio here.
Ask Jeff your investing question by leaving them in the comments box below. We'll be posting his answers soon.