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Robert N. Schaeffer
Becker Capital Management, Inc.
n the 1990s, high-quality, large-company stocks ruled the markets, and many of the blue chips were too pricey for Robert Schaeffer's taste. But in recent years, investors shied away from familiar names in favor of small-company stocks and even riskier choices. That has left more blue chips in the portfolio manager's price range. He says that to find the best bargains, he favors stocks that are depressed because their business is going through a temporary stretch of weaker results. His picks include...
General Electric Company (GE). For years, GE displayed reliable double-digit earnings growth, but nowadays it is reporting erratic gains. Earnings should accelerate as the giant sells off weak-performing financial divisions, putting more emphasis on water-treatment facilities and other fast-growing infrastructure businesses. Recent share price: $36.00.
Limited Brands Inc. (LTD). This retailer has faced soft results in some of its chains, but earnings should be propelled by strong growth at Victoria's Secret and Bath & Body Works. Recent share price: $26.78.
Bottom Line interviewed Robert N. Schaeffer, vice president of Becker Capital Management, Inc., and portfolio manager of Becker Value Equity Fund (BVEFX). The fund had an annualized total return of 11.3% for the three years through February 28, more than 2 percentage points above the Standard & Poor's 500 Stock Index's return.
Becker Capital Management, Inc.
n the 1990s, high-quality, large-company stocks ruled the markets, and many of the blue chips were too pricey for Robert Schaeffer's taste. But in recent years, investors shied away from familiar names in favor of small-company stocks and even riskier choices. That has left more blue chips in the portfolio manager's price range. He says that to find the best bargains, he favors stocks that are depressed because their business is going through a temporary stretch of weaker results. His picks include...
General Electric Company (GE). For years, GE displayed reliable double-digit earnings growth, but nowadays it is reporting erratic gains. Earnings should accelerate as the giant sells off weak-performing financial divisions, putting more emphasis on water-treatment facilities and other fast-growing infrastructure businesses. Recent share price: $36.00.
Limited Brands Inc. (LTD). This retailer has faced soft results in some of its chains, but earnings should be propelled by strong growth at Victoria's Secret and Bath & Body Works. Recent share price: $26.78.
Bottom Line interviewed Robert N. Schaeffer, vice president of Becker Capital Management, Inc., and portfolio manager of Becker Value Equity Fund (BVEFX). The fund had an annualized total return of 11.3% for the three years through February 28, more than 2 percentage points above the Standard & Poor's 500 Stock Index's return.