John,
Barron's Online currently has a feature story entitled, "Dangerous Curves", that discusses the reversal of fortune that momentum investors have experienced over the past year.
"Indeed, the recent carnage hasn't changed the way Gary Pilgrim sees the world. As portfolio manager of PBHG Growth, and head man at Pilgrim Baxter, which runs the PBHG funds, Pilgrim has racked up market-beating results by buying high-growth companies. He believes the pendulum will swing back in his direction.
'We're intensely focused on a narrow part of the market,' he explains. 'There's 7,000-plus stocks out there, about 180 of them in PBHG Growth and PBHG Emerging Growth. In fact, we're only interested in about 500 stocks, small companies with high earnings growth. At the moment, the market's interested in something else, and we're underperforming by a wide margin. When the wind is with us, our funds are among the best. When it's against us, we drop to the bottom. But, the market is interested in growth more times than not... I just have such confidence that, if you build a portfolio of companies growing faster than the market, you can at a minimum grow your way to a return.'
Among PBHG Growth's current bets: Ascend Communications, Altera, Clear Channel Communications, Microchip Technology, PeopleSoft and Parametric Technology."
You can read the entire article by going to their website at www.barrons.com (it's free, at least for the moment).
Best regards,
William |
