|Hathaway and Krause|
The portfolio manager of 1492’s Value Strategies and Core Alpha Strategy funds was the guest speaker in the AIM program on Wednesday, September 30, 2015. Rodney Hathaway, CFA, has a value-based approach to equity investing. He employs bottom-up fundamental techniques to identify undervalued stocks in the small cap universe. His approach to small cap stock selection offers investors capital appreciation with lower volatility – and the stocks in the portfolio all have a dividend income component.
Mr. Hathaway’s presentation was well received by the AIM students. He talked in depth about his valuation philosophy and the thematic strategies he (and his growth counterpart at 1492 Capital Management, Joe Frohna) employ to identify attractive companies to add to the respective portfolios they manage.
Rodney has extensive small cap value investing experience. He has been a featured keynote speaker at several business forums and investment conferences throughout the country. He has also been a regular commentator on CNBC, Bloomberg TV, CNN and Street.com. Rodney has also been a featured expert on small cap value investing in publications such as Investor’s Business Daily, The Wall Street Journal, Businessweek, and Fortune.
In discussing the thematic approach employed by 1492, Rodney indicated that this enables the firm to quickly focus their research efforts on identifying companies that meet their valuation criteria and also have a catalyst for future growth and the realization of full value. This strategy allows for them to be more nimble in the entry and exit positions – as well as to add diversification to the portfolio.
Rodney and his associates will buy a number of companies across a specific theme so as to diversify single company risk. Over time, they envision that the stocks related to a theme will outperform their industry peers due to superior valuation and that the theme will outperform the broader market. While they are index aware, they do not use an index to determine our sector weightings. Weightings are arrived at as a result of the individual stock selection that takes place due to our bottom-up research process.