John Garragher, more from today's interview with Ron Ognar
( I hope it comes through )
TA
Triple Threat
David Franecki
Strong's Ron Ognar quarterbacks funds, recruits portfolio
chiefs and draws up game plans for growth investing.
interactive.wsj.com
interactive.wsj.com
interactive.wsj.com
At A Glance
ÿÿÿÿÿÿÿÿÿÿÿ ÿ Strong Growth
ÿÿÿÿÿÿÿÿÿÿÿÿÿ P.O. Box 2936
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Milwaukee, Wis. 53201-1400
ÿÿÿÿÿÿÿÿÿÿÿÿÿ 800-368-1030
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Top 10 Holdings
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Companyÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Percentageÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Of Portfolioÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ JDS Uniphaseÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 5.8%ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Cisco Systemsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 5.0ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ VeriSignÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3.4ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Veritas Softwareÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3.0ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Qualcommÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2.6ÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ BroadVisionÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2.5ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Juniper Networksÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2.2ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Home Depotÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2.1ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Medimmuneÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2.0ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Kohl'sÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1.9ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Totalÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 30.5%ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ As of 12/31/99 Source: Strong Funds
Ron Ognar says if he wasn't picking stocks for a living,
he'd be either a fisherman or a coach. But at Strong Funds,
he's actually all three. The former Little League skipper is
banging out hits as head of Strong Growth and Strong
Growth 20 funds while "fishing" for growth stock analysts
to school in his aggressive stock-picking style.
Ognar buys and holds core blue-chip stocks while trading
faster-growing small- and mid-cap stocks at a rapid-fire
pace. Strong Growth Fund turned over stocks at more than
twice the pace of the average fund last year.
He's insistent on keeping
core holdings Cisco Systems
and Home Depot relatively
untouched, but is quick to cut
a stock loose if he sees its
fundamentals losing steam.
An earnings miss, slipping
profit margins or declining
revenues don't sit well with
him. He'll also trim or
unload a position outright, as
he did with Internet holdings
America Online and Real
Networks in December, if stock prices rise above internal
targets. "You're not only trying to own the best companies,
you're trying to perform," he says of his freewheeling style.
Ognar, 57, began his career as an accountant in California,
but found the work "too dry." So he went back to his native
Chicago, looking to break into money management. In June
of 1968, he started at LaSalle National Bank, where he
traded stocks and bonds and went on to manage portfolios
within a year.
He had discovered his true calling.
Ognar's heavy exposure to technology
stocks last year helped his funds to
top-flight performance. Strong Growth returned 75.1% in
1999, ranking it in the top 20% of growth mutual funds
tracked by Lipper. Strong Growth 20, which uses the same
style, but picks fewer stocks, returned 109.5%. In seven
years under Ognar's watch, Strong Growth has gained
30.7% a year, seventh-best among 118 growth funds
tracked by Lipper.
The fund had two-thirds of its money invested in
technology stocks at yearend, but trimmed back to about
half this month to broaden into health care, financial
services, entertainment and retail sectors.
A long-time retail stock growing in the portfolio is Kohl's,
whose headquarters is a neighbor to Strong Funds in
suburban Milwaukee. Ognar has bumped up his Kohl's
position to 2.5% from 1.9% of the fund this month, and
says he could add more if its expansion into the Northeast
this spring goes as planned.
Kohl's is best known in the
Midwest, but purchased 33
former Caldor stores to
expand its reach in the
Northeast. Should those stores
do well, Ognar thinks the
stock could grab more
attention from East Coast
money managers. "This could
become a cult stock," he said.
While Ognar has backed away from pure Internet plays, he
is stepping up on what he calls the "arms dealers" of the
Internet: infrastructure companies.
There's no one in that group better positioned than JDS
Uniphase, Ognar says. The company makes parts for
fiberoptic data transfer, which will be the conduit for
information exchange over the Internet. A shortage of these
components, which caused Lucent to miss earnings
estimates last quarter, is a sign of pent-up demand.
"There's a great 10-year period ahead where they [will be]
a leader in fiberoptic components, a leader in application
laser technology." He thinks that JDS Uniphase can
increase earnings in excess of 50% during the next five
years and is considering bumping up his price target of
$250 a share and keeping the stock.
Ognar thinks the acquisition of E-Tek Dynamics,
announced last week, will only help the stock by adding
critical mass.
The combined company will have 70% market share in the
white-hot sector. JDS Uniphase is a core holding, so Ognar
doesn't tinker with it much, but he would add to it if the
price dipped.
Ognar also views JDS Uniphase as a strong candidate for
inclusion in the Standard & Poor's 500 Index. If it were
included in the benchmark, index players would have to
step up and buy, which would give JDS shares a huge
boost. |
