Barron's Interview Joe Skornicka
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Date updated:03-14-2009

A Munder fund manager dodges bullets by relying on the courage of his convictions on both Sells and Buys.

symbol name last price % change open
  • +
  • NLY
    Annaly Capital Ma
  • $18.11
  • -0.66%
  • $18.20

To replace some of his financial-company holdings, Skornicka bought shares in Annaly Capital Management (NLY), a realestate investment trust that was trading around 14 late last week, near book value, and has a hefty 14% yield. Says the manager: "It wasa margin play back in 2007.The margins were flat. Now, they've widened, and government-agency securities are what's left in the game [portfolio]." He bought the stock at 15.

People owning NLY also tend to own: ABTAMXAUYBAPBRK.BBVFDD

TheStreet.com Rating: B+ What is this?

  • +
  • ACE
    Ace Ltd
  • $49.73
  • -1.09%
  • $49.97

Skornicka also set out to find which firm would benefit most from the bust-up of AIG (AIG), the world's largest and, arguably, most aggressive, property-and-casualty insurer. His answer: ACE (ACE). The Swiss insurer appears to be slowly stepping into businesses like commercial and workers' compensation, which AIG has pulled back from. ACE is expected to earn around $7.75 a share for fiscal 2009. At a recent 35, it was trading around 4.6 times 2009 earnings, or around book value. "ACE clearly stands to benefit the most from the troubles affecting AIG," says Skornicka. "Rates have been softening in the property-and-casualty business for years. Now they're starting to stabilize."

People owning ACE also tend to own: ALLCBCOPDHISAFTRVTYC

TheStreet.com Rating: B What is this?

  • +
  • AOC
    Aon Corp
  • $39.03
  • -0.10%
  • $38.90

Last autumn, the portfolio manager also bought shares of Aon (AOC), the world's largest insurance broker and consultant, as a play on pricing stability returning to the P&C business. Aon's revamped managementhas turned the company around via acquisitions over the last four years. As a result, AON has picked up market share from rivals, and enjoys widening margins. At its recent price of 38, AON was fetching roughly 11.6 times the consensus 2009 earnings estimate of $3.31 a share.

People owning AOC also tend to own: AEPAMPCAGCSXEIXFGNW

TheStreet.com Rating: B What is this?

  • +
  • BAC
    Bk Of America Cp
  • $16.09
  • +0.06%
  • $16.03

Recognizing a pattern of management denial, Skornicka dodged Bear Stearns, and dumped Freddie Mac (FRE), Lehman, Citigroup (C), Wachovia and Washington Mutual before their slides gathered force. Most recently, he dropped Bank of America (BAC) due to larger-than-expected losses. His one last banking giant: JPMorgan Chase (JPM).

People owning BAC also tend to own: AAPLGOOGINTCMSFTRACKCFCASH

TheStreet.com Rating: C- What is this?

  • +
  • JPM
    Jp Morgan Chase C
  • $42.46
  • -0.21%
  • $42.47

Recognizing a pattern of management denial, Skornicka dodged Bear Stearns, and dumped Freddie Mac (FRE), Lehman, Citigroup (C), Wachovia and Washington Mutual before their slides gathered force. Most recently, he dropped Bank of America (BAC) due to larger-than-expected losses. His one last banking giant: JPMorgan Chase (JPM).

People owning JPM also tend to own: AAAIGIBMINTCJNJKOMSFT

TheStreet.com Rating: B- What is this?

  • +
  • FRE
    Freddie Mac
  • $1.14
  • -1.72%
  • $1.14

Recognizing a pattern of management denial, Skornicka dodged Bear Stearns, and dumped Freddie Mac (FRE), Lehman, Citigroup (C), Wachovia and Washington Mutual before their slides gathered force. Most recently, he dropped Bank of America (BAC) due to larger-than-expected losses. His one last banking giant: JPMorgan Chase (JPM).

People owning FRE also tend to own: BAMBSXCCHRDELLIMAXJOE

TheStreet.com Rating: D What is this?

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http://seekingalpha.com/article/173986-s
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ons

Also, DSX, for instance moved up after
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