Polynous manager likes Optical Cable,
By Shawn Langlois, CBS.MarketWatch.com
Last Update: 12:01 AM ET June 17, 2002
SAN FRANCISCO (CBS.MW) - When the lights turn on and the cockroaches scurry back under the linoleum, Kevin Wenck says he likes his chances.
The lights haven't turned on just yet as Wenck's Polynous Growth Fund (PAGFX: news, chart, profile), with over $6 million in assets under management, has struggled with a 27-percent year-to-date pullback while the S&P 500 has shed 16 percent. Over the last three years, his fund has lost 8 percent while the S&P 500 has fallen nearly 2 percent.
"Polynous' overall emphasis is on growth stocks," Wenck said. "There's a bit of an opportunistic/contrarian way of looking at the world. I take advantage of situations where the rest of the world is overreacting."
His first pick, Optical Cable (OCCF: news, chart, profile), makes up almost 20 percent of the fund. As Wenck pointed out, "You hear the words 'optical cable' and you feel like gagging? All you can imagine is the glut of cable running from Seattle to Chicago with 6 percent getting used." But the bulk of Optical Cable's revenue comes from internal enterprise usage in markets that seem to be doing just fine, he said. "The company has historically been profitable, it's always been cash flow positive, and it's had no debt." Its shares fell 5 cents to 56 cents on Friday. |
