"Of Mutual Interest"-Rusty Robinson, Portfolio Manager, Monteagle Value Fund
Tuesday, May 06, 2008PAUL KANGAS: In tonight's "Of Mutual Interest" segment, we'll be looking at a large cap value fund that's managed to do better than most in that category. It's called the Monteagle value fund value fund. Only barely in the red to date, it has beaten the Standard & Poor's by wide margins over the past five years and since its inception nine years ago, it's had an 11 percent annualized return. Rusty Robinson has been Monteagle's value fund manager for that entire time and Rusty, welcome to NIGHTLY BUSINESS REPORT.
RUSTY ROBINSON, PORTFOLIO MANAGER, MONTEAGLE VALUE FUND: Thank you for having me.
KANGAS: Let me first ask you, how have you managed to ride out the market's down turn with minimal damage?
ROBINSON: Well, we have continued to be committed to the position we took two to three years ago primary in the energy, in the industrial and materials industries.
KANGAS: Ah, ha. You say that your strategy is to invest in undervalued companies. Does that mean you're getting ready to go after some of those beaten down stocks like financials?
ROBINSON: We are interested in the financials. We would like to see more of the companies complete the process of dealing with their sub-prime lending problems.
KANGAS: Do you have some specific names that you're looking at?
ROBINSON: We would prefer to gravitate toward the larger companies. Obviously Citicorp and Bank America are the larger companies. We're more concerned about with the regionals that they still may have a few more problems to do with in the real estate industry.
KANGAS: Your fund has no doubt benefited from its large holdings of oil and oil service stocks. Do you still consider his sector to be under valued?
ROBINSON: Most of our positions continue to buy back their shares. They also trade within nine to 10 times earnings, this year's earnings and they also trade around five to six times cash low.
KANGAS: OK we just have a minute. Just give us your favorite oil stocks, one or two of them.
ROBINSON: We still believe with Exxon buying back shares that the oil service industries will do more, will benefit more from what is going on with the $122 oil.
KANGAS: OK. Are there stocks in other sectors that you like now?
ROBINSON: We have been playing with technology the last year and a half. We have some positions in Microsoft and Intel.
KANGAS: OK.
ROBINSON: We believe that the larger companies will benefit more than the smaller companies.
KANGAS: OK. Interesting. Do you personally own any of the stocks that you've just mentioned?.
ROBINSON: We do not. I do not.
KANGAS: OK. Rusty, I want to thank you for being with us tonight and continued good luck.
ROBINSON: Thank you so much for having me, Paul.
KANGAS: My guest Rusty Robinson of the Monteagle value fund.
