Briget B. Hughes of Morningstar.com has written an article which tracks down the investment careers of Michael Price and his protégés at Mutual Series. A little background:
Here are the whereabouts of the portfolio managers and analysts he trained:
GuruFocus takes notices of the tradition and culture that Michael Price nurtured. We track the portfolio and activities of Michael Price himself and David Winters.
The Morningstar article reviewed the guiding principles of the Michael Price camp of value investors: 1. Do not lose money; 2. Indifferent to indexing. And they all operate in three areas: 1. Stocks traded below intrinsic value; 2. Merger and Acquisition Risk arbitrage; 3. Distressed debt.
The Morningstar author did something that GuruFocus users can do rather quickly – discover the stocks that owned by several money managers (click here to try the Aggregated Portfolio function at GuruFocus). There is no stocks shared by the five money managers mentioned earlier, but there are several names shared by four of the five:
Read the complete Morningstar article here.
Check out Michael Price and David Winters stock holdings by clicking on their names respectively.
It's been almost 10 years since famed value investor Michael Price left his chairman post at Mutual Series, five years after selling it to Franklin Templeton in late 1996. And it has been even longer since he stepped down from his day-to-day portfolio-management duties. But his influence remains strong. Since his departure, portfolio managers and analysts he trained and worked with have become prominent in their own right. They have followed different paths, albeit many along the same general investment road.
Here are the whereabouts of the portfolio managers and analysts he trained:
- Peter Langerman, remain at Mutual Series. Langerman runs Mutual Shares.
- Several ex-Mutual Series managers now offer mutual funds. David Winters launched Wintergreen Fund in late 2005.
- David Marcus started Evermore European Value
- Chuck Lahr and Anne Gudefin left in late 2009 to start up PIMCO EqS Pathfinder.
GuruFocus takes notices of the tradition and culture that Michael Price nurtured. We track the portfolio and activities of Michael Price himself and David Winters.
The Morningstar article reviewed the guiding principles of the Michael Price camp of value investors: 1. Do not lose money; 2. Indifferent to indexing. And they all operate in three areas: 1. Stocks traded below intrinsic value; 2. Merger and Acquisition Risk arbitrage; 3. Distressed debt.
The Morningstar author did something that GuruFocus users can do rather quickly – discover the stocks that owned by several money managers (click here to try the Aggregated Portfolio function at GuruFocus). There is no stocks shared by the five money managers mentioned earlier, but there are several names shared by four of the five:
Four of the five managers own value-club favorite Berkshire Hathaway (BRK.A, Financial) in a greater than 1% weight. (Marcus is the exception.) Remember the preference for good capital allocators? But Winters is currently the most enthused: Wintergreen had more than 7% of assets in Berkshire Hathaway at midyear. Winters says that Berkshire is a complicated company on which few spend the time really "doing the work," and he thinks it's undervalued.
Bank of America (BAC, Financial) makes the grade for four of the five, with Winters on the sidelines this time. It shouldn't be a surprise that this stock attracted interest from this crew. In looking for huge margins of safety (that is, a big gap between the market price and the managers' assessment of intrinsic value) and with experience investing in distressed areas, these investors often end up picking through rubble. Between late 2007 and early 2009, Bank of America's shares dropped more than 90%, as many questioned whether or not the company could survive in the wake of a serious financial crisis. But these managers appreciated Bank of America's strong franchise and knew banking wasn't going away. Especially as the company strengthened its capital structure and shareholder dilution became less of an issue, they have gained more confidence in the stock.
Read the complete Morningstar article here.
Check out Michael Price and David Winters stock holdings by clicking on their names respectively.
