To listen to specific topics click the links below:
Full Conference Call
Introductions of Call Participants
Factors that Would Lead Litman/Gregory to Remove a Manager
Reasons for Selecting RCB
Review of RCB’s Investment Philosophy and Process
Why RCB Runs Concentrated Portfolios
Current Investment Opportunities
RCB’s Approach to Running a Masters’ Select Portfolio
Removing Behavioral Biases from the Investment Process
Lessons Learned from Past Experience
Q&A
Neither the information contained herein nor any opinion expressed shall be construed to constitute an offer to sell or solicitation to buy any securities mentioned herein. The views herein are those of the portfolio managers at the time their comments were made and may not be reflective of current conditions.
Mutual fund investing involves risks. Loss of principal is possible. The funds may invest in the securities of small companies which exposes investors to additional risk, including security price volatility and less liquidity than investing in larger companies. The funds may invest in foreign securities, which exposes investors to economic, political, and market risks and fluctuations in foreign currencies. Masters’ Select Value fund is a non-diversified fund, which means that it may concentrate more of its assets in fewer individual holdings than a diversified fund. The Value fund may invest in a portion of its assets in securities of distressed companies, including debt obligations. Debt obligations of distressed companies typically are unrated, lower rated, in default, or close to default and may become worthless.
Masters’ Select Funds are distributed by Quasar Distributors LLC.
Margin of safety is defined as a principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. Return on invested capital is calculated by dividing the difference between net income and dividends over the total capital. Discounted cash flow analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents. Price to book ratio is calculated by dividing the current market price of a stock by the book value per share.
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 2000 Value Index is a broad based index that measures the performance of those companies within the 2000 largest U.S. companies, based on total market capitalization, that have lower price-to-book ratios and lower forecasted growth rates. One cannot invest directly in an index.
Wisdom Tree ETF is one of the 20 exchange traded funds introduced by WisdomTree Investments on the NYSE in 2006. All of Wisdom Tree ETF’s track dividend producing indexes and use a fundamental weighting approach as opposed to the more traditional market capitalization weighting.
This material should not be interpreted as an offer of any other funds mentioned. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
As of 7/31/07, Spartech comprises 1.80% of MSSFX. The SEC has neither approved nor disapproved these securities.
|
