Large-Cap Energy Stocks are the Proper Play at this Point in the Economic Cycle According to Tim Guinness, Highly Experienced Asset Manager

RELATED QUOTES

SymbolPriceChange
CHK5.80+0.05
SNP78.52-0.95
REP.BA223.000.00
CEO120.19-1.73

67 WALL STREET, New York - November 25, 2012 - The Wall Street Transcript has just published its Oil and Gas Investing Forecast 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: Oil & Gas Investing

Companies include: China Petroleum & Chemical Cor (SNP), PetroChina Co. Ltd. (PTR), CNOOC Ltd. (CEO), Valero Energy Corp. (VLO), Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), BP plc (BP), Enersis S.A. (ENI), Total SA (TOT), Helix Energy Solutions Group, (HLX), Peabody Energy Corp. (BTU), Cameco Corp. (CCJ) and many others.

In the following excerpt from the Oil and Gas Investing Forecast Report, an experienced portfolio manager discusses the outlook for the sector for investors:

TWST: Please give us some history of Guinness Asset Management, and tell us about your background as well.

Mr Guinness: I started my career in the 1970s working at Barings Investment Bank in London. My job was advising companies on raising capital and on mergers and acquisitions. After eight years, I moved on to a smaller investment bank, and four years later, this company asked me if I would take over the investment side of its business. I was not looking for a change of career but the opportunity was intriguing, and I was happy to do that.

It was 1981, and the world was changing. The U.S. had come off the gold standard in 1970, and certainly, the 1970s had been a pretty terrible decade for investors and stock and bond markets. Inflation had really got out of hand. But that didn't put me off getting involved with the stock market. In fact, what I thought to myself was maybe, as the market was now so cheap, the time was getting close when it would start to recover. London had had exchange controls until about two years before that, and when they removed those controls, suddenly it was easy to invest all around the world. I decided that my approach to building this investment department would be to focus it on international investing, and that has been the theme of my career for the last 33 years.

I also had a soulmate in Howard Flight, an old Cambridge friend, who was already in the business and worked with me on building it up.

Over the next 18 years, we built a successful business latterly known as Guinness Flight Global Asset Management, acquired some equity in it, and in 1998 we were acquired by a successful South African bank called Investec. The business had grown from $100 million under management to about $12 billion, and had gone from 20 people to about 350.

After the takeover, there was a suggestion we should close down the energy sector fund that we had run for 13 years but that had attracted little investor interest. I said to anybody who would listen that it was a crazy choice. I pointed out that the oil price was very, very low at that moment - it was 1998 - and it wasn't very smart to close the fund at the very bottom of the commodity cycle. My colleagues said the problem was that there was no one to run the fund, and when I said I would run it, they said I could not as I was the Chairman. I then said that since I was the Chairman, it was my job to decide these things, and I would do it.

That small acorn led to four years later to my retiring from Investec and the setting up of Guinness Asset Management in London and Guinness Atkinson Asset Management in Los Angeles. This I did in order to achieve two things. One was to allow me to continue to run this energy fund, and the second was to enable me to acquire a U.S. mutual fund business, which I had set up in 1994, and which Investec had decided to exit. Together, these two companies focused on international investment management.

I really found energy an interesting investment area. It played to my strengths. I was a global equity investor and energy investing is global. Meanwhile, Guinness Atkinson focused on managing Asian equity funds for U.S. investors, an enthusiasm of mine from the early 1990s. Then shortly after we set these companies up in 2003, the world stock market crisis of 2000 to 2002 ended.

The U.S. mutual fund business, which as I mentioned focused on investing in Asia, began to pick up nicely. And then, in 2004, the oil price started moving up. When I took over the fund back in 1998, it had $3 million in it. In 2004, we launched a Guinness Atkinson Global Energy Fund. And by 2006, we had built our combined energy assets up to $2 billion. I then began to recruit people to help me develop the business.

Then came another twist in the tale. Investec had built up their own research team and asked for their non-U.S. fund back. We then had to launch my own non-U.S. energy fund in the teeth of the 2008 gale. But we managed, and currently, we have about $400 million in energy although we haven't quite got back to the $2 billion of 2006. I have about 20 people working between London and Los Angeles, including Will Riley and Dr. Ian Mortimer, who work with me on the energy fund. We are looking forward to the next 10 years very much.

TWST: What are the main funds you manage now?

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...
  • German air force inspecting 10 A400M engines on EASA orders - Die Welt Reuters - 1 hour 28 minutes ago

    BERLIN (Reuters) - The German air force is inspecting 10 engines from Airbus A400M military transport planes under orders from European safety officials after cracks were discovered in the combustion chamber ... … More »

  • J.C. Penney to close 13 to 14 percent of stores Associated Press - 1 hour 29 minutes ago

    J.C. Penney said Friday that it will be closing anywhere from 130 to 140 stores as well as two distribution centers over the next several months as it aims to improve profitability in the era of online ... … More »

  • PharMerica beats 4Q profit forecasts Associated Press - 1 hour 32 minutes ago

    The Louisville, Kentucky-based company said it had net income of 25 cents per share. Earnings, adjusted for one-time gains and costs, came to 58 cents per share. The results beat Wall Street expectations. ... … More »

  • BRIEF-Tdm says Jan fresh fruits bunches production 33,144.23 MT Reuters - 1 hour 34 minutes ago

    Feb 24 (Reuters) - Tdm Bhd * Jan fresh fruits bunches production 33,144.23 mt, crude palm oil production 5,849.54 mt, palm kernel production 1,597.45 mt Source ( http://bit.ly/2lzDSOU ) Further company ... … More »

  • Ellen, Wal-Mart give scholarships to school's senior class
    Ellen, Wal-Mart give scholarships to school's senior class Associated Press - 1 hour 37 minutes ago

    Ellen DeGeneres has handed out college scholarships to the entire senior class of a New York City charter school. DeGeneres surprised the 41 students from Brooklyn's Summit Academy this week at her California ... … More »

  • China, France overtake US as top German trade partners
    China, France overtake US as top German trade partners Associated Press - 1 hour 41 minutes ago

    New statistics show that China and France have overtaken the U.S. as Germany's largest trading partners. Germany's Federal Statistical Office reported Friday that trade between the country and China in ... … More »

  • Bitcoin is hovering near all-time highs
    Bitcoin is hovering near all-time highs Business Insider - 1 hour 45 minutes ago

    Reuters/Bobby Yip Bitcoin on Friday pulled back slightly … Continued The post Bitcoin is hovering near all-time highs appeared first on Business Insider. … More »

  • Gold hits 3-1/2-month high as 'Trumpflation trade' fades
    Gold hits 3-1/2-month high as 'Trumpflation trade' fades Reuters - 1 hour 46 minutes ago

    Gold hit its highest in about 3-1/2 months on Friday as the dollar headed for its first week of decline in three after the new U.S. finance chief poured cold water on the "Trumpflation trade" that had boosted the greenback this year. Treasury … More »

  • Telkom Said to Mull Purchase of Cell C Debt in Ownership Bid (1) Bloomberg - 1 hour 46 minutes ago

    Cell C creditors approached Telkom to help reorganize debt that includes 640 million euros ($677 million) of bonds maturing in July 2018, said the people, who asked not to be identified because discussions are private. Telkom, whose attempts to … More »

  • BASF's fourth-quarter operating profit boosted by higher petrochemical prices Reuters - 1 hour 48 minutes ago

    Germany's BASF (BASFn.DE), the world's largest chemicals group by sales, forecast a rebound in earnings this year after higher petrochemical prices boosted profits in the final three months of 2016. The company, whose products include catalytic … More »

  • Bundesbank official warns London banks against post-Brexit tricks
    Bundesbank official warns London banks against post-Brexit tricks Reuters - 1 hour 52 minutes ago

    UK-based banks that want to operate across the European Union after Brexit must set up genuine operations, not 'empty shells' in EU countries, a Bundesbank official said on Friday. Andreas Dombret, the Bundesbank board member responsible for … More »

  • J.C. Penney to Shut as Many as 140 Stores as Industry Slumps (1) Bloomberg - 1 hour 53 minutes ago

    The closings represent as much as 14 percent of the company’s store base and less than 5 percent of total sales, J.C. Penney said Friday. J.C. Penney’s plan echoes rival Macy’s Inc.’s announcement last year that it would shut about 100 of its … More »

  • Standard Chartered shares fall as it withholds dividend but lifts bonuses Reuters - 1 hour 54 minutes ago

    LONDON/HONG KONG (Reuters) - Standard Chartered (STAN.L) shares fell as much as 5 percent on Friday as the British bank said it would not pay a dividend for 2016 due to restructuring costs, but increased its staff bonus pool by 5 percent. The bonus … More »

  • BRIEF-Borneo Oil bhd updates on January production Reuters - 1 hour 58 minutes ago

    Feb 24 (Reuters) - Borneo Oil Bhd: * Jan ores mined 48,936.80 mt , Jan production of gold dore 72.54 oz Source text: Further company coverage: … More »

  • PSEG reports 4Q loss Associated Press - 1 hour 58 minutes ago

    On a per-share basis, the Newark, New Jersey-based company said it had a loss of 19 cents. Earnings, adjusted for non-recurring costs, came to 54 cents per share. The results surpassed Wall Street expectations. ... … More »

  • Harsco reports 4Q loss Associated Press - 2 hours 4 minutes ago

    On a per-share basis, the Camp Hill, Pennsylvania-based company said it had a loss of 19 cents. Earnings, adjusted for one-time gains and costs, came to 16 cents per share. The industrial services company ... … More »

  • E.W. Scripps beats Street 4Q forecasts Associated Press - 2 hours 4 minutes ago

    The Cincinnati-based company said it had profit of 46 cents per share. The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for ... … More »

  • Exit by Polish Top Brass Guts Command on NATO Front Line (2) Bloomberg - 2 hours 5 minutes ago

    With the government moving to rid institutions of officials appointed by the former ruling Civic Platform party, which it defeated in 2015 elections, 90 percent of the General Staff leadership and more than 80 percent of the army’s top brass have … More »

  • Portugal could exit excessive deficit in spring - EU's Dombrovskis Reuters - 2 hours 10 minutes ago

    Portugal is set to exit the EU excessive deficit procedure if the European Commission confirms its latest forecasts for this year and next in a new assessment in the spring, a top EU official said on Friday. Lisbon says it cut the budget deficit … More »

  • EHealth reports 4Q loss Associated Press - 2 hours 15 minutes ago

    On a per-share basis, the Mountain View, California-based company said it had a loss of 91 cents. Losses, adjusted for stock option expense and amortization costs, came to 79 cents per share. The results ... … More »

  • China overtakes US as Germany's top trade partner AFP - 2 hours 16 minutes ago

    China overtook the United States last year to become Germany's biggest trading partner for the first time, official data showed, a shift likely to reassure Berlin as worries grow over US President Donald ... … More »

  • Calgon reports 4Q loss Associated Press - 2 hours 28 minutes ago

    On a per-share basis, the Moon Township, Pennsylvania-based company said it had a loss of 12 cents. Earnings, adjusted for non-recurring costs, were 5 cents per share. The results fell short of Wall Street ... … More »

  • Global stocks fall amid Trump trade policy concerns
    Global stocks fall amid Trump trade policy concerns Associated Press - 2 hours 29 minutes ago

    Global stocks fell Friday amid worries about the potential impact of U.S. trade policies and as investors became more cautious about the market's recent rally. KEEPING SCORE: France's CAC 40 slumped 1.4 ... … More »

  • Will the legend of Nokia 3310 see its comeback?
    Will the legend of Nokia 3310 see its comeback? International Business Times - 2 hours 30 minutes ago

    Nokia 3310 is truly a legendary phone that deserves a revival from HMD Global. … More »

  • IStar reports 4Q loss Associated Press - 2 hours 30 minutes ago

    On a per-share basis, the New York-based company said it had a loss of 27 cents. Earnings, adjusted for one-time gains and costs, were 4 cents per share. The commercial real estate finance company posted ... … 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
    0.225-0.045-16.67%
    N21.SI
    0.135+0.004+3.05%
    41F.SI
    0.191-0.007-3.54%
    40F.SI
    0.180.00-2.70%
    40E.SI
    0.1060.0000.00%
    5WA.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.60+0.28+87.50%
    AWC.SI
    0.48+0.17+54.84%
    BCD.SI
    0.35+0.08+29.63%
    BQO.SI
    0.515+0.065+14.44%
    T55.SI
    0.155+0.019+13.97%
    BKZ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.225-0.045-16.67%
    N21.SI
    0.215-0.040-15.69%
    AWI.SI
    0.138-0.017-10.97%
    1C0.SI
    0.11-0.01-9.84%
    BRR.SI
    0.575-0.055-8.73%
    600.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4045-0.0031-0.22%
    USDSGD=X
    1.4854-0.0035-0.24%
    EURSGD=X
    1.7581-0.0084-0.48%
    GBPSGD=X
    79.9560-0.106-0.13%
    SGDJPY=X
    5.5239+0.0131+0.24%
    SGDHKD=X
    3.1593-0.0033-0.10%
    SGDMYR=X
    9,486.1621-38.1729-0.40%
    SGDIDR=X
    4.8855+0.0077+0.16%
    SGDCNY=X
    1.0778-0.0077-0.71%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,254.10+2.70+0.22%
    GCJ17.CMX
    18.25+0.14+0.76%
    SIH17.CMX
    90.25+0.64+0.72%
    ^XAU
    2.67+0.01+0.24%
    HGK17.CMX
    53.99-0.46-0.84%
    CLJ17.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.83-0.05
    ^FVX
    2.35-0.04
    ^TNX
    2.99-0.04
    ^TYX