Federated's Kohler keeps thinking big
Kohler likes United Technologies, Dell, Boston-Scientific
By Jon Friedman, CBS.MarketWatch.com
Last Update: 12:08 AM ET Aug. 7, 2002
PITTSBURGH (CBS.MW) - Angela Kohler, the manager of the Pittsburgh-based Federated Large Cap Growth Fund, continues to think big as she looks for bargains among blue-chip stocks.
The Federated fund focuses on the large-cap stock sector, which has been getting hammered in the wake of economic woes and accounting scandals.
As of Monday, the $342 million fund (FLGAX: news, chart, profile) lost 34 percent of its value in the past 12 months, according to Lipper. The benchmark Standard & Poor's 500 Index ($SPX: news, chart, profile), fell 31 percent over the same period. Over the three year period, Federated Large Cap Growth lost 18 percent annually, vs. a 13 percent decline by the S&P over the same period.
Kohler believes that big stocks have the financial wherewithal to weather corporate controversies and market slumps. By contrast, smaller companies have fewer resources and, therefore, are more vulnerable to volatility.
"We're sticking to our guns in the fund," Kohler said. "Lately, headline events have been overshadowing the value that these stocks present. The recent events have driven down stock prices and should give the fund opportunities to buy large companies' shares at reasonable prices."
Kohler favors United Technologies (UTX: news, chart, profile), a defense-technology play whose products include Pratt & Whitney aircraft engines, Hamilton Sundstrand aerospace systems and Sikorsky helicopters "With a long-term increase planned for defense spending, this stock is well placed amid the so-called `new Cold War,' " Kohler said. The shares climbed $2.10, or 3 percent, to $65.20 on Tuesday.
In addition, Kohler also likes Dell Computer (DELL: news, chart, profile), the huge personal-computer company. "As a market leader, Dell can take advantage of ways that technology is changing and increase its market share with retail customers," Kohler said. The stock closed up $1.21, or 5.2 percent, to $24.32 on Tuesday.
Another of the stocks at the top of her list is Boston-Scientific (BSX: news, chart, profile), which develops and markets medical devices. "This industry has great demographics, which positions the stock for growth," Kohler said. Boston-Scientific rose 6 cents, 0.2 percent, to $27.06 on Tuesday.
Jon Friedman is media editor for CBS.MarketWatch.com in New York. |
