Institutional investors tend to avoid cyclical businesses due to their unpredictable nature. Trying to predict when the cycle will turn is almost impossible, which results in volatility, the opposite of what investors like to see.
However, Whitney George of Sprott Asset Management is not put off by these qualities. In fact, George prefers cyclical businesses for bargain hunting. As part of this trade, he believes it's time to go long asset managers.
He's quite good at picking winners as well. In the 15 years at the helm of the Sprott Focus Trust, George has earned a net annualized 11.2%, vs. 9.7% for the Russell 3000.
In the December issue of Value Investor Insight, Whitney George...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
