An Interview with Andrew Sleeman, Portfolio Manager and Research Analyst at Franklin Mutual Advisers Reveals His Top Picks in Asia Pac & European Stocks

RELATED QUOTES

SymbolPriceChange
ZURN.VX245.20-0.30
NVS79.625+0.315
RO.SW242.30+0.30
BP34.22+0.06

67 WALL STREET, New York - December 28, 2012 - The Wall Street Transcript has just published its Best Investment Strategy Interviews of 2012 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investment Strategies - Large Cap Investing - Investing in Emerging Markets - Investing in Energy - Value Investing - Downside Protection With Upside Participation - Macroeconomic Trends

Companies include: Caterpillar Inc. (CAT), Novartis AG (NVS), BP plc (BP) and many others.

In the following excerpt from the Best Investment Strategy Interviews of 2012 Report, an experienced Asia and Pacific value stock portfolio manager discusses his investment methodology and top stock picks:

TWST: Is the fund, due to any themes or trends, over- or underweight any particular sectors right now?

Mr. Sleeman: We're index agnostic, so we don't look at the world from a top-down perspective and pick where we're going to be. We are aware of the index even though we don't manage to it. We're overweight financials, which might surprise. We're also overweight consumables. We're underweight energy, and we're underweight materials.

I would say that from the underweight perspective, with oil prices having traded around the $120 level and certainly $100 priced into them, with the marginal dollar of production we think below $90, energy stocks haven't been particularly attractive. However, after the recent underperformance of that sector, it's starting to look more interesting to us.

How these stocks are categorized does matter. When I say we're overweight consumer discretionary, it's mainly media, hotel and leisure where we've been overweight. For example, on the media side, we've owned things like AUSTAR, which was an Australian pay TV company which was acquired by FOXTEL. We own another company called SinoMedia (0623.HK), which is one of our favorite names. SinoMedia is a stock that trades on six times earnings, but more than half of its market cap today is in cash, so it's really trading on three times earnings ex- that cash holding. SinoMedia sells advertising space for the CCTV, the state-owned broadcasting companies, into the market.

And Chinese companies typically spend twice the percentage of sales of Western companies on advertising and promotion, because they're trying to establish brand, which is quite interesting. So we like SinoMedia as a play on that. Another name that for whatever reason falls into the consumer discretionary bucket is called Seven Group (SVW.AX). It's a holding company that has two assets, a media company in Australia, and the largest Caterpillar (CAT) dealership in Australia and China. So it's actually an indirect play on the materials sector. We've taken profits in that name.

On the hotel and leisure side, we've been involved in a name called REXLot (0555.HK), which has the biggest footprint of lottery administration in China. The lottery revenues to the Chinese government are very important. REXLot has the license to distribute the machines that are used by the outlets.

They also distribute the scratchy cards that you and I are familiar with. And increasingly, they're going into single-game betting. The NBA is huge in China, and these guys offer betting, which was previously carried out illegally, but China has made that legal. So they're benefiting from that growth, as well as being a first-mover in mobile lotteries. It's quite an interesting business with very solid cash flows, trading at six times earnings. We also own the Mandarin Oriental Hotel (M04.SI) chain, as well as a stake in the French hotel group Accor (AC.PA), and another name that fits within that business, Ladbrokes (LAD.L), the U.K. betting shops chain.

The other area, financials, is one that may surprise you, where we actually have generated a lot of our outperformance...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Oil down on glut, dollar; Nigeria rebels add to bearish outlook
    Oil down on glut, dollar; Nigeria rebels add to bearish outlook Reuters - 12 minutes ago

    Oil prices settled down more than 1 percent on Monday, snapping two consecutive days of gains, on caution over galloping Middle East crude output and a firmer dollar boosted by speculation of a U.S. rate hike by year-end. A pledge by Nigerian … More »

  • Grain lower, livestock mixed Associated Press - 14 minutes ago

    Grain futures were lower Monday on the Chicago Board of Trade. Wheat for Sept. declined 13 cents at $3.7050 a bushel; Sept. corn lost 4.50 cents to 3.1175 a bushel; Sept. oats was off 7 cents at $1.62 ... … More »

  • Gold turns up from near five-week low as dollar eases
    Gold turns up from near five-week low as dollar eases Reuters - 34 minutes ago

    NEW YORK/LONDON (Reuters) - Gold rebounded from a near five-week low as the dollar dropped on Monday, shrugging off earlier pressure by top Federal Reserve officials' comments fuelling speculation that U.S. interest rates would rise sooner rather … More »

  • EU to hand Apple Irish tax bill of over 1 billion euro, source says
    EU to hand Apple Irish tax bill of over 1 billion euro, source says Reuters - 40 minutes ago

    The European Commission will rule against Ireland's tax dealings with Apple on Tuesday, two source familiar with the decision told Reuters, one of whom said Dublin would be told to recoup over 1 billion euros in back taxes. The Commission declined … More »

  • China’s Credit Party Winds Down in Headwind for Economic Growth Bloomberg - 52 minutes ago

    The amount of local yuan bond sales minus maturities fell 39 percent in August from a year earlier for non-financial firms to 124 billion yuan ($18.6 billion), data compiled by Bloomberg show. China must balance cutting corporate debt, which more … More »

  • U.S. Stocks Approach Record High on Economic Data; Oil Slumps Bloomberg - 53 minutes ago

    Brazil’s Ibovespa extended the world’s biggest gain this year on speculation President Dilma Rousseff will be permanently removed from office. The monthly jobs report due this Friday may provide more clues on whether policy makers will have room to … More »

  • Estonia fails to elect president in first round
    Estonia fails to elect president in first round AFP News - 1 hour 12 minutes ago

    Estonia's parliament failed to elect a president Monday after none of the contenders for the largely ceremonial role received the necessary two-thirds majority of votes in round one of the race. The presidential election in the small Baltic state, … More »

  • Copper Drops to Lowest in Two Months on Ample Supply, China Woes Bloomberg - 1 hour 42 minutes ago

    Inventories tracked by exchanges in Shanghai, London and New York climbed five straight days last week to the highest since May. Barclays said in a report that a recent slump in the copper market “may be an early warning sign of weakening in China’s … More »

  • U.S. assets gain, European shares dip on Fed rate hike bets
    U.S. assets gain, European shares dip on Fed rate hike bets Reuters - 1 hour 46 minutes ago

    U.S. stock markets and the dollar climbed on Monday while European share markets fell, following comments by top Federal Reserve officials that bolstered expectations for an interest rate hike by the U.S. central bank this year. Fed Chair Janet … More »

  • Yale grad students file petition seeking union certification Associated Press - 2 hours 4 minutes ago

    Yale University graduate students on Monday petitioned the National Labor Relations Board for union recognition, saying they have organized to address concerns surrounding pay and benefits and give themselves ... … More »

  • South African Treasury, Eskom row over coal contracts as government rifts deepen Reuters - 2 hours 17 minutes ago

    South Africa's Treasury and state-owned Eskom clashed on Monday over a probe into coal contracts between the power utility and a company linked to the wealthy Gupta family that is accused of holding undue political sway over President Jacob Zuma. … More »

  • European privacy regulators to scrutinise WhatsApp privacy switch Reuters - 2 hours 21 minutes ago

    Facebook's move to relax the privacy policy of WhatsApp, the world's most popular mobile messaging application, will be closely scrutinised, the chair of Europe's leading group of privacy regulators said on Monday.     WhatsApp, which counts more … More »

  • US alarm as Turkey warns Syrian Kurd militia of more strikes
    US alarm as Turkey warns Syrian Kurd militia of more strikes AFP News - 2 hours 26 minutes ago

    Turkey warned Monday it would carry out more strikes on a Syrian Kurdish militia if it failed to retreat beyond the Euphrates River, as Washington voiced alarm over weekend clashes. Turkish forces pressed on with a two-pronged operation inside … More »

  • Berlin to require mums to come clean on 'milkmen's kids'
    Berlin to require mums to come clean on 'milkmen's kids' AFP News - 2 hours 43 minutes ago

    Germany has drafted a law requiring mothers to inform their partners if their children were fathered by another man, Justice Minister Heiko Maas said on Monday. It would apply to cases in which men who believe they are not the real fathers seek … More »

  • RUBBER-Tokyo futures prices after evening session Aug 29 Reuters - 3 hours ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Sep 156.0 25 - - * Oct 156.0 86 156.0 1 * Nov 153.8 75 153.6 ... … More »

  • Four Nomura Investment Bankers Said to Leave as Firm Shrinks Bloomberg - 3 hours ago

    Jason Fertig, who led Nomura’s health-care investment-banking group in the Americas, and Matthew Upton, a banker in the firm’s global-technology team, are joining Mizuho Financial Group Inc., the people said, asking not to be identified discussing … More »

  • Markets Right Now: Banks lead US stocks higher on rate hopes Associated Press - 3 hours ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. Banks are leading stocks higher at midday as investors hope for higher interest rates. Wells Fargo, the nation's largest ... … More »

  • JPMorgan Index Move Puts $370 Billion Islamic Debt on Fund Radar Bloomberg - 3 hours ago

    Shariah-compliant notes will be eligible for inclusion in five JPMorgan gauges from Oct. 31 and will account for between 0.35 percent to 0.99 percent of total assets on the benchmarks, according to an Aug. 18 statement by the bank. Sukuk will be … More »

  • Yuan Bears Emerge From Hibernation as Fed Threatens G-20 Calm Bloomberg - 3 hours ago

    Derivative markets are pointing to renewed bets on yuan depreciation, with a three-month measure of expected price swings poised for the biggest monthly increase since January. The increased pessimism comes after a period of calm that sent the … More »

  • Statoil expects 'loads of' M&A deals coming up, strategy chief says
    Statoil expects 'loads of' M&A deals coming up, strategy chief says Reuters - 4 hours ago

    ** Says: "If you look at the acquisition and divestment markets for upstream oil and gas on a global basis over the last five years, they have been falling to all-time lows... but there are a number of active spots, one of those is in certain parts … More »

  • Liz Weston: 5 money myths you probably believe
    Liz Weston: 5 money myths you probably believe Associated Press - 4 hours ago

    Managing money can be complicated, and myths are often born from people's struggles to make it simpler. But simplistic solutions can cost you instead of saving you money. If you believe any of these five ... … More »

  • BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says Bloomberg - 4 hours ago

    “It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,” said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. “They could … More »

  • Singapore's GIC buys stake in Vietnam's bank AFP News - 5 hours ago

    Singapore sovereign wealth fund GIC will buy a 7.7 percent stake in Vietnam's biggest bank, both companies said in a joint statement on Monday. GIC signed a memorandum of agreement to buy 305.8 million new shares of Vietcombank, the fund's first … More »

  • Wall St rises as hawkish Fed boosts financial stocks
    Wall St rises as hawkish Fed boosts financial stocks Reuters - 5 hours ago

    Yellen, addressing a gathering of global central bankers on Friday, said the central bank was close to meeting its goals of maximum employment and stable prices, while describing consumer spending as "solid". Yellen gave little indication of when … More »

  • Foreign experts in Egypt to probe Russian airliner crash AFP - 5 hours ago

    Russian and German experts arrived in Cairo Monday to inspect the wreckage of a Metrojet plane downed over Sinai, hoping to pinpoint how it came apart, the aviation ministry said. The Islamic State group ... … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.124-0.005-3.88%
    N21.SI
    0.735-0.020-2.65%
    G13.SI
    0.128+0.014+12.28%
    RE4.SI
    0.3550.0000.00%
    E5H.SI
    4.12-0.10-2.37%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.355+0.115+47.92%
    BAZ.SI
    0.151+0.024+18.90%
    D79.SI
    0.23+0.03+15.00%
    AWI.SI
    0.475+0.060+14.46%
    588.SI
    0.128+0.014+12.28%
    RE4.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.105-33.87%
    BCZ.SI
    0.25-0.10-28.57%
    BKX.SI
    0.13-0.05-27.78%
    AYL.SI
    0.165-0.055-25.00%
    BKZ.SI
    0.745-0.130-14.86%
    564.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3592+0.001+0.07%
    USDSGD=X
    1.5205+0.0009+0.06%
    EURSGD=X
    1.7812+0.0003+0.02%
    GBPSGD=X
    74.9560+0.274+0.37%
    SGDJPY=X
    5.7028-0.0019-0.03%
    SGDHKD=X
    2.9772+0.0109+0.37%
    SGDMYR=X
    9,759.0078+10.8193+0.11%
    SGDIDR=X
    4.9125+0.0063+0.13%
    SGDCNY=X
    1.0295+0.0032+0.31%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,326.50+0.60+0.05%
    GCZ16.CMX
    18.82+0.16+0.88%
    SIU16.CMX
    96.93+1.14+1.19%
    ^XAU
    2.080.00+0.12%
    HGU16.CMX
    46.99-0.65-1.36%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.18-0.06
    ^FVX
    1.57-0.07
    ^TNX
    2.22-0.08
    ^TYX