Inflation investing, 5 stocks to buy: Top-1% small-cap fund managers

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 51%

Business News News

The father-son team behind a top-1% mutual fund explains how they pick small companies with high upside built to thrive amid inflation — and makes the case for 5 of their favorite stocks

in 2022, the father-son duo didn't take a victory lap because their fund still fell 1.6% — even though its index sank 19.3%. A historically tough year for stocks isn't an excuse for the Cooks.

SouthernSun's investing philosophy hasn't changed in the last 34 years. The firm still uses a simple, bottom-up stock-picking strategy to find companies with healthy balance sheets and the potential to generate substantial free cash flow and deliver strong absolute returns over time. However, Phillip explained that the way stocks are selected evolved to become more efficient, transparent, and data-reliant while empowering the firm's analysts to give input.

Once the Cooks and their colleagues find high-quality, cash-producing companies with capable management teams, they often hold them for several years. Phillip said that his private equity background makes him think more like a business owner than a short-term-focused trader.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

If you want to invest in small companies for juicy gains, best to look outside the USA. Join the VietMoon NFT community!

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market news today: Inflation concerns keep traders on edgeUS stocks trade mixed as inflation concerns keep traders on edge over higher rates
Source: BusinessInsider - 🏆 729. / 51 Read more »

Olaplex earnings fall short, shares plunge as brand faces lawsuitInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Source: BusinessInsider - 🏆 729. / 51 Read more »