(GuruFocus, November 6, 2009) Investment Guru Richard Snow has a rough 2008, as a matter of fact, he had a rough 2006, 2007, and 2008, beaten by the S&P500 three years in a row. (see table below). According to a document from the Snow Capital Management website, their asset under management suffered as well: firm wide asset dwindled from $6.0 billion as of the end of 2007 to $2.5 billion as of the end of 2008. The dramatic cut is mostly due to the -44.25% yearly return in 2008, but some serious withdraw also happened.
Long-term, Richard Snow achieved admirable return and advantage over the benchmark:
Things seem to be in mend right now. What fell the most in 2008, bounced the most in 2009. Certain physical law are not breakable. Although most of Richard Snow’s managed asset are in the managed account, he does manage a mutual fund (Snow Capital Opportunity Fund) and the performance of the mutual fund is visible on daily basis. Year-to-date, the fund is up 55.6%, beating the market by a huge margin and offering the investors stuck around some comfort.
Richard Snow achieved the superb short term performance by heavily investing in financial issues. Here is his end of 3Q09 asset allocations:
These are his top holdings as of 3Q09:
Community Health SystemsInc. is a leading provider of non-urban acute healthcare services. Their facilities together with their medical staffs provide a wide range of inpatient and outpatient acute care services and a variety of specialty services. Community Health Systems Inc. has a market cap of $3.02 billion; its shares were traded at around $32.56 with a P/E ratio of 12.8 and P/S ratio of 0.3. Community Health Systems Inc. had an annual average earning growth of 14.2% over the past 5 years.
Conclusion
Long-term, Richard Snow achieved admirable return and advantage over the benchmark:
| Year | Return (%) | S&P500 (%) | Excess Gain (%) |
|---|---|---|---|
| 2008 | -44.25 | -37 | -7.2 |
| 2007 | -1.76 | 5.61 | -7.4 |
| 2006 | 15 | 15.79 | -0.8 |
| 2005 | 12.77 | 4.91 | 7.9 |
| 2004 | 16.14 | 12 | 4.1 |
| 2003 | 43.44 | 28.7 | 14.7 |
| 2002 | -18.41 | -22.1 | 3.7 |
| 2001 | 6.9 | -11.9 | 18.8 |
| 2000 | 28.46 | -9.1 | 37.6 |
| 1999 | 21.38 | 21 | 0.4 |
Things seem to be in mend right now. What fell the most in 2008, bounced the most in 2009. Certain physical law are not breakable. Although most of Richard Snow’s managed asset are in the managed account, he does manage a mutual fund (Snow Capital Opportunity Fund) and the performance of the mutual fund is visible on daily basis. Year-to-date, the fund is up 55.6%, beating the market by a huge margin and offering the investors stuck around some comfort.
Richard Snow achieved the superb short term performance by heavily investing in financial issues. Here is his end of 3Q09 asset allocations:
| Industry | 2009-03-31 | 2009-06-30 |
|---|---|---|
| Technology | 3% | 3.3% |
| Financials | 30.6% | 33.7% |
| Consumer Services | 12.1% | 9.7% |
| Health Care | 23% | 19.7% |
| Consumer Goods | 1.1% | 0.1% |
| Industrials | 9.7% | 11.1% |
| Basic Materials | 4.7% | 4.8% |
| Oil & Gas | 15.2% | 16.7% |
These are his top holdings as of 3Q09:
No. 1: JPMorgan Chase & Co. (JPM, Financial), Weighting: 4.16% - 2,342,799 Shares
J.P. Morgan Chase & Co. is a leading global financial services firm. The firm is a leader in investment bankingasset managementprivate bankingprivate equitycustody and transaction services and retail and middle market financial services. A component of the Dow Jones Industrial AverageJPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers and the world's most prominent corporateinstitutional and government clients. Jpmorgan Chase & Co. has a market cap of $170.99 billion; its shares were traded at around $43.48 with a P/E ratio of 40.5 and P/S ratio of 2.6. The dividend yield of Jpmorgan Chase & Co. stocks is 0.5%.No. 2: Bank of America Corp. (BAC, Financial), Weighting: 4% - 5,838,120 Shares
Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individualssmall businesses and commercialcorporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing wheneverwherever and however they choose. Bank Of America Corp. has a market cap of $130.21 billion; its shares were traded at around $15.05 with a P/E ratio of 100.3 and P/S ratio of 1.7. The dividend yield of Bank Of America Corp. stocks is 0.3%. Bank Of America Corp. had an annual average earning growth of 7.5% over the past 10 years.No. 3: Community Health Systems Inc. (CYH, Financial), Weighting: 3.75% - 2,899,605 Shares
Community Health SystemsInc. is a leading provider of non-urban acute healthcare services. Their facilities together with their medical staffs provide a wide range of inpatient and outpatient acute care services and a variety of specialty services. Community Health Systems Inc. has a market cap of $3.02 billion; its shares were traded at around $32.56 with a P/E ratio of 12.8 and P/S ratio of 0.3. Community Health Systems Inc. had an annual average earning growth of 14.2% over the past 5 years.
