Jim Kitzinger of KLCM visited Marquette University's AIM program this past week
|Dr. Krause and Mr. Kitzinger meeting with students in AIM Room|
|Jim Kitzinger presenting in the AIM Room|
Jim discussed KLCM’s equity investment philosophy and process – explaining his firm’s bottom up stock picking approach and their focus on out of favor and neglected companies. True to the principles of a value equity firm, he confirmed that cash flow is critical for shareholders and is central to their valuation analysis. He also stressed the importance of protecting the downside, which confirms the importance KLCM places on strong management. He told the students that they seek out firms that possess a catalyst to drive earnings and to realize untapped value.
Dr. Krause stated, “Consistent with the approach taken by the students in the AIM program, KLCM’s process is driven by intensive research; an understanding of company and industry drivers; clear and achievable management objectives; and seek favorable risk/reward supported by valuation disciplines. They run concentrated portfolios of 25 to 30 stocks and will add to and trim positions to take advantage of market volatility and to manage risk. We will hear from many different portfolio managers this semester and I believe that starting with Jim Kitzinger set a high bar.”
As per his previous visits, Jim loves to talk about the finance industry and socialjustice within a democratic society. The students asked questions and had an opportunity to interact with Mr. Kitzinger in more detail after class. Krause stated, “We appreciate the efforts of local portfolio managers to visit our classroom – these meetings keep the ‘applied’ in the AIM program. And Jim Kitzinger is typical of the type of support we receive from the asset management industry – we greatly value his time with us.”