Fund manager Rich Cervone's stock-picking strategy, "cash flow and controversy," sounds like it could be a Jane Austen novel knockoff. But while the strategy isn't a romantic classic like Pride and Prejudice, shareholders are enchanted with the fund's returns.
Cervone and co-manager Jim Wiess have been dictating the direction of the Putnam Investors fund (PINVX) since the summer of 2002. Over the past three years, the large-cap blend fund has returned an average of 19.36% annually, more than 17 percentage points better than the S&P 500. Cervone attributes the success to buying stocks that are stumbling in the near term but have the potential to generate lots of cash down the road. The fund is up 3.5% year to date.
TheStreet.com sat down with Cervone to learn what plot twists he has in mind for his shareholders. ...
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