Mastercard, Google Top Fund Manager's List
Wall Street may be buzzing about Facebook's impending IPO, but Daniel O'Keefe, portfolio manager for the Artisan Global Value Investor Fund (ARTGX), says all the excitement is only making shares of the social network's competitor Google (GOOG) all the more attractive.
"Facebook is supposedly coming out at $100 billion. Meanwhile, Google is valued close to $200 billion with more than ten times the revenue, profit and free cash flow. It is a business that has been tested and has long term growth and I'll take it over Facebook at that valuation any day," says O'Keefe.
The $103 million fund, which garners 4 stars from Morningstar, is up 4.6% over the past 12 months, putting it in the top 10% of Morningstar's world stock category. Over the past three years, the fund has returned an average of 25% annually, outpacing 80% of its Morningstar rivals.Switching from the internet to oil majors, O'Keefe says he is filling up his fund with shares of Total (TOT) because of its cheap relative valuation. "It's a global E&P business trading at the lowest multiple in the industry and I believe its trading at that kind of valuation because it happens to be listed in France. People don't want to own European companies, even though economically it's no different than say BP or ExxonMobil in terms of where its cash flows are coming from," says O'Keefe. Staying in Europe, O'Keefe is also bullish on British grocery store chain Tesco despite worries that austerity will seriously affect consumers purchasing habits. "They have a dominant market position in the United Kingdom, so while they may be losing a little bit of market share there due to the economic environment, fundamentally it's a very strong business. Meanwhile, they are growing very strongly outside of Europe and given the valuation, it's very attractive," says O'Keefe. Back in the U.S., O'Keefe is also charging into Mastercard (MA) as the secular change to a cashless society continues to unfold. "Over 85% of the world's transactions still take place in the form of cash and checks and over time that's going to move towards electronic forms of payment. This is one of the best businesses in the world and so it's fantastic to be able to buy it at a reasonable to attractive multiple," says O'Keefe.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV