For 2014 Robert Olstein (Trades, Portfolio)'s All Cap Value Fund beat the S&P 500, returning 15.03% compared to 13.69% for the index.
Olstein outlined his strategy going forward in his annual letter to shareholders:
"In the current market, we are finding viable opportunities to purchase investments that we believe meet our investment objectives by focusing on three company specific factors: (1) a commitment to maintain a strong financial position as evidenced by a solid balance sheet; (2) an ability to generate and/or grow future sustainable free cash flow which in our opinion is not being properly valued by the market; and (3) and a management that intelligently deploys cash balances and free cash flow from operations to increase returns to shareholders. We believe that companies prioritizing these factors are in a position to compete more advantageously in all types of economic environments and as a result offers the Fund the appropriate risk/reward tolerances."
In the first quarter, his fund found 11 new stocks to invest in, bringing the total in the portfolio to 117 with an aggregate value of $926 million. The top-weighted sectors present in the portfolio were industrials at 25.2%, consumer cyclical at 24.3% and technology at 16.4%.
The largest new holdings of the first quarter were: Oshkosh Corp (OSK), Joy Global Inc. (JOY), NVIDIA Corp (NVDA), Viacom Inc. (VIAB) and Citizens Financial Group Inc. (CFG).
Oshkosh Corp (OSK)
Olstein purchased 234,000 shares of Oshkosh Corp, a 1.23% portfolio holding. The stock's price averaged $46 in the first quarter.
Oshkosh Corp was incorporated in Wisconsin. The company began business in 1917. Oshkosh Corp has a market cap of $4.19 billion; its shares were traded at around $53.58 with a P/E ratio of 16.8 and P/S ratio of 0.7. The dividend yield of Oshkosh Corp stocks is 1.2%.
Joy Global Inc. (JOY)
Olstein purchased 185,000 shares of Joy Global Inc., a 0.78% portfolio weight. The company's share price for the quarter averaged $42.
Joy Global Inc. was incorporated in Delaware on Sept. 16, 1986. Joy Global Inc. has a market cap of $4.21 billion; its shares were traded at around $43.20 with a P/E ratio of 14.00 and P/S ratio of 1.20. The dividend yield of Joy Global Inc. stocks is 1.80%. Joy Global Inc. had an annual average earnings growth of 17.8% over the past 10 years.
NVIDIA Corp (NVDA)
Olstein purchased 315,000 shares of NVIDIA, a 0.71% portfolio holding. The stock's price averaged $21 for the quarter.