David Fingold's Top Picks: Hoya Corporation, Entegris Inc., First Republic Bank
We have no targets for market averages and do not manage money relative to the indexes. Our Funds, Dynamic Global Dividend Fund, Dynamic American Fund, Dynamic International Discovery Fund and Dynamic Global Discovery Fund invest in a concentrated portfolio of high-quality companies that we think will do well over the next 3-5 years. We also offer Dynamic Global Asset Allocation Fund, a balanced fund with a concentrated portfolio of equities and fixed income.
When we own companies that are in cyclical industries, we do have a positive medium-term view of the industry. The industries we presently like include but are not limited to luxury goods (LVMH, Hermes), medical devices (Hoya), sensors (Halma, Hamamatsu Photonics), construction (Belimo, Sika), defense (Elbit Systems, Teledyne), semiconductors (Inficon, ASM Lithography), composite materials (Schweiter), and many others.
Many of the industries we have invested in are not deeply cyclical. They include but are not limited to cosmetics (L’Oreal), distilled spirits (Campari), coffee (Strauss), retail (Costco, Target) and many others.
When we are negative about an industry, we do not invest in it at all and assess the impact of negative developments in that industry on our other investments. The fixed income positioning of Dynamic Global Asset Allocation Fund is zero weight corporate bonds and no exposure to duration.
Investors should consider whether they are taking appropriate risks with respect to commodity prices, interest rates and currencies. Most investors do not. They buy the index or use a closet index portfolio manager and take risks they don’t understand.
Simply put we invest in companies we like and have no exposure to developments in the global economy that concern us.