Barron's Interview Hedge Fund Manager Tom Claugus
10892 views
Rate Now: 1 2 3 4

average rating: 0.00 / 0 ratings
Created by barrons2
DESCRIPTION:

Date updated:03-29-2008

Since its inception in 1993, his Bay Resource Partners hedge fund, managed by GMT Capital, has returned 20%, net of fees, annually, nearly twice the gain of the Standard & Poor's 500 over the same span. The long-short equity vehicle ranked 28th in Barron's Hedge Fund 50 performance listing last year with a three-year cumulative average return of 27.85% through June 30.

symbol name last price % change open
  • +
  • CNQ
    Canadian Nat Res
  • $67.46
  • -1.39%
  • $68.38

Energy stocks remain at the top of Bay Resource's shopping list. Calgary-based Canadian Natural Resources (CNQ) heads that list. "Canadian Natural has gone from a start-up company to Canada's second-largest producer of oil and gas in just short of two decades," says Claugus. Production per share has grown 10%, while cash flow has grown 25% a year in the past five years. Management owns about 1.6 billion Canadian dollars (US $1.6 billion) of stock, dwarfing the commitments made by other independent producers, he says. At $70, the shares are trading well below the hedge fund's target price of 100, based on a multiple of 16 or more times 2009 earnings of $6 a share.

People owning CNQ also tend to own: AAPLBRCMBTUCCJCTRPGGGOOG

TheStreet.com Rating: C+ What is this?

  • +
  • NIHD
    Nii Holdings
  • $31.10
  • -0.29%
  • $31.15

NII Holdings (NIHD), which plunged from more than 90 in 2007 to a low near 29 recently, provides Nextel wireless services to businesses in Argentina, Brazil, Chile, Mexico and Peru. The shares have been hit by worries about the company's ability to handle 3G, or third-generation, services and the problems that have overwhelmed Sprint Nextel of late. Bay Resource remains a buyer, even though its average cost is 47 a share. "We believe that NII has a great management team that will keep the company growing," says Claugus. He thinks it's a bargain, trading at six times expected 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda, and only 9.5 times projected 2008 earnings of $3.35 a share. NII Holdings "could easily double over the next three years," in his view.

People owning NIHD also tend to own: AMTGMEAAPLAKAMATVICACBCELG

TheStreet.com Rating: C+ What is this?

  • +
  • DFS
    Discover Fin Svcs
  • $15.27
  • 0.00%
  • $N/A

Another pick is credit-card issuer Discover Financial (DFS), which earned a reported 50 cents a share in its most recent quarter. Despite the current credit scare, the Morgan Stanley spin-off has reported improving creditworthiness among its customers. It also benefits from owning its payments-processing network and has the chance to increase market share because its merchant fees are lower than rivals'. Discover has a big share-buyback program under way, as well. The stock, which trades around 16, has the potential to reach 24, or 15 times expected 2009 earnings of $1.60 a share, according to the hedge-fund manager.

People owning DFS also tend to own: AAPLACIAMZNBNICBICMGCNI

TheStreet.com Rating: D What is this?

  • +
  • CROX
    Crocs
  • $5.29
  • +1.34%
  • $5.17

Crocs (CROX), a maker of the plastic sandals that became wildly popular over the past few years. Bay Resource initially shorted the stock at $16, only to watch it rocket to 75 before round-tripping back to 18. The shares should go lower because inventories have backed up to 225 days, or 2.5 times the normal 90-day rate, according to Claugus. Here, however, the numbers tell him it's worth taking a chance.

People owning CROX also tend to own: AAPLACHALTIAMZNFCELJSDAKONA

TheStreet.com Rating: D What is this?

Portfolio not tracked!

Comments not available

ADD YOUR COMMENTS:

Cramer's Take on Headline Stocks...

Posted on Dec. 2, 2009 Not a Stockpickr member? Join the community today -- for free.Regardless of why a stock is in the news, it never hurts to hear what a professional...

12.02.09 | 16:46 PM
Short Squeezing the Regional Banks

By Jonas Elmerraji Posted on Dec. 2, 2009 It’s been a tough year for regional banks. While investors mulled over the fate of the big three banks -- Citigroup (C), Ban...

12.02.09 | 12:51 PM
Dividend Stocks for the Week

By Jonas Elmerraji Posted on Dec. 1, 2009 After an earnings season that has brought a significant stream of dividend-increasers, stocks are taking a step back, with jus...

12.01.09 | 13:52 PM
This Week's 'Barron's' Roundup

By Roberto Pedone Posted on Dec. 1, 2009 Bullish and Bearish: Each week, Barron’s publishes bullish and bearish stories on a variety of stocks. We present summaries o...

12.01.09 | 12:23 PM
more articles
big money sucks
12.02.09 | 20:54 PM From author tradintrash
Nymph's Trading Daily Trading Diary
04.13.09 | 01:10 AM From author Trading Nymph
General market Technical Analysi...
11.14.07 | 22:55 PM From author ZA
Show me the Money: Recovery Math
12.02.09 | 21:31 PM From author graspthemarket
more forums
Q. help me understand the USDX... ...
12.03.09 | 04:56 AM Asked by fine tune your disciplines

A. i mean if i bought a basket of stocks
(or fiats) and 57.6% of my port was
composed of EURO's...it would behove me
to have the EURO out
perform....especially if i bought it
back in 1999.

today 's lists
Analyst Upgrades

Analyst Upgrades for Dec. 2, 2009. Read more here. more

Stocks With Unusual Option Activity

Unusually active options can often indicate that a major event in a stock is about to take place, or that unsophisticated investors (using options in lieu of leverage) are ... more

Dividends: Tomorrow's Ex-Divide...

Below is a list of some of the companies that have their ex-dividend date Thursday, Dec. 3, 2009. What is the ex-dividend date? The ex-dividend date of a stock is the... more