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Reply to @bee: Good grief! HP, JCP lately. Wachovia, Fannie Mae in 2008. D&C must be the worst stock picker of just about any actively managed fund company today. They lag value index ETFs for the last 10 years...
But over the last 5 years, they win...
Perhaps stock picking is easier than we are led to believe.
Reply to @Investor: I agree. They jumped back into Fannie Mae, Wachovia, and AIG before each imploded in 2008. They started buying HP in 2001 and it was their No 1 position in 2010...
But I do not understand how or when they apply exit criteria...until it is too late, like it was with F, AIG, FNME in 2009.
Here's excerpt from shareholder letter in 2012:
"Hewlett-Packard (3.5% of the equity portfolio on June 30) hurt relative results in the first half of the year. Hewlett-Packard, down 21% year to date, has been one of the portfolio’s largest equity holdings for the past several years. The company has struggled recently with management changes, acquisition integrations, and disappointing earnings.
Despite these concerns, we have confidence in the company’s prospects due to its durable business franchises (such as printers and servers), its attractive valuation (trading at 0.3 times sales and 4.7 times forward earnings on June 30), a management team led by new CEO Meg Whitman, and its scale advantages as one of the largest technology companies in the world."
D&C actually added to its HPQ position, which continued to tank through last year after Autonomy debacle.
On JCP, down 12% today, looks like it is a relatively minor holding at 0.54% (fortunately), which they first acquired June of last year:
Hey, they are a value house, so I know it comes with the territory. I have actually long admired D&C. And I remain long DODGX, DODBX (longest held holding), and DODIX across several accounts. But that does not mean I don't get to shout when they get it wrong.
Comments
ownership/shareholder - JCP
They are bringing back an extremely experienced Retail business CEO.
Don't judge the stock performance by after hours action. Tomorrow it might bounce back. If not, some value fund managers might scoop up a bit.
But over the last 5 years, they win...
Perhaps stock picking is easier than we are led to believe.
But I do not understand how or when they apply exit criteria...until it is too late, like it was with F, AIG, FNME in 2009.
Here's excerpt from shareholder letter in 2012: D&C actually added to its HPQ position, which continued to tank through last year after Autonomy debacle.
On JCP, down 12% today, looks like it is a relatively minor holding at 0.54% (fortunately), which they first acquired June of last year:
Hey, they are a value house, so I know it comes with the territory. I have actually long admired D&C. And I remain long DODGX, DODBX (longest held holding), and DODIX across several accounts. But that does not mean I don't get to shout when they get it wrong.