To whom it may concern:
It is silly to debate one's performance on every individual stock, since Mr. Gintel runs a portfolio of stocks. If you want to qualify his investment record, lets just go to Morningstar, and look at the 5-year performance:
5-Yr. % Chg.
Gintel +14%
S&P +22.4%
Gintel vs. S&P -8.4%
This means that over the last 5 years, Gintel has under-performed the S&P by 8.4% per year, on average. In 1994 alone, when the market was up 1.3%, Gintel's fund was DOWN 16.5%.
Based on an analysis of his top holdings, it appears his portfolio
1) is very concentrated,
2) has a median market capitalization is $1.2 billion,
3) his second largest position is now WAND, which has a market cap of $187 million.
His WAND investment is curious, because it is way below the median market cap of his fund, and has a very small float. From an outsiders perspective, this does not seem to be very disciplined approach. I will repeat, WAND is his fund's second largest holding. When and if the foam hits the fan, there is no liquidity. It is surprising that such a "savvy" investor would commit so much of the funds capital to a company with such a small float.
I would hope that Mr. Gintel has done significant outside due diligence, not only on the company and sell through's, but on all of its management as well. |
