A Fund’s Value: Having Skin in the Game – Bloomberg 09-06-13

Salient to Investors:

Greg Jackson at Jackson Park Capital looks for any size stocks of companies with:

  • A shareholder-oriented management team, with CEOs owning stock in their companies.
  • Strong insider buying and buying in the open market with cash that’s at least six figures in value, not acquiring shares through a stock option plan.
  • Jackson said he and partner John Park have one client only, their own fund.
  • High free cash flow. The book “The Outliers” profiles 8 very successful CEOs and talks about how redeploying cash flow is just as important as running the business correctly.
  • CEOs who are agnostic and say when their stock is cheap they buy it back and when it’s expensive they use it as currency.
  • Company growth in the high single-digits and low double-digits, and with the dividend you are going to get a total return in the teens.
  • Preferably conservative balance sheets.
  • Mega-caps worldwide that we know well.

Jackson said:

  • Their fund is 15 percent international and is completely agnostic on market-cap and country.
  • US companies are cheap relative to other countries where there’s less stability, such as France, and given the stable US economy and quality of the companies.
  • Their biggest weighting is in specialty pharmaceuticals.
  • David Herro at Oakmark Intl Fund, and David Samra at Artisan Intl Value are shareholders.

Read the full article at  http://www.bloomberg.com/news/2013-09-06/a-fund-s-value-having-skin-in-the-game.html

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