Roge, who helps manage the Roge Partners Fund (ROGEX), researches mutual funds, limited partnerships and companies based on several characteristics, such as improving profitability, competent management and consumers' loyalty to brand-name products.
Bohemia, N.Y.-based R.W. Roge & Co. has about $200 million in assets under management. The Roge Partners Fund, which invests in value and growth stocks and alternative assets, is small, with about $12.5 million in assets. The fund has risen 8.4% this year, beating 72% of world-stock funds followed by Morningstar. By comparison, the benchmark S&P 500 is up 6.1%.
"The overwhelming theme of the fund is that we look for great allocators of capital, whether it be a mutual fund manager generating returns or a CEO of a company that does a great job of adding value," Roge says.The values of the companies Roge targets can be rich compared to the broader stock market. But their intangible assets are worth the price, he says. In doing so, Roge avoids companies with razor-thin margins. "The great thing about the strategy is that it doesn't depend on macro themes," Roge says. "With great brand recognition, [companies in the fund] have the ability to pass on the costs to their customers." Roge divides his stock holdings in two baskets. The smaller basket includes companies that he calls "valuation anomalies." "For whatever reason, it may be a temporary setback in earnings or a macro theme that's temporarily weighing down the company," Roge says. "Maybe they don't have the best brands or widest competitive moat, but in those cases we believe we're buying $1 for 60 cents. For these companies with mediocre businesses that are extraordinarily cheap, we'll hold them for six months."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV