Finding Large Value With Wendell Perkins

The portfolio manager for JohnsonFamily Large Cap Value fund discusses his recipe for success.
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How would you describe your fund manager: a numbers-based quant jock, or one who searches for catalysts to drive a stock higher?

How about a little bit of both?

That may be the best way to characterize Wendell Perkins, portfolio manager for the $112 million

(JFLCX)

JohnsonFamily Large Cap Value fund. Perkins has found a great deal of success mixing both strategies; his fund is up 4.3% year to date, more than two percentage points better than the

S&P 500 index

.

Perkins' recipe for outperformance has been to screen a universe of roughly 700 companies with more than $4 billion in market capitalization, then value those stocks based on their price/earnings, price/book and price/cash flow. After running his quantitative models, Perkins takes what the computer spits out and looks for "current or imminent catalysts that are likely to improve shareholder value." Typical catalysts include corporate or industry restructuring or consolidation, new product introductions or selling unprofitable divisions.

The results have led him to big winners this year including

Unocal

(UCL)

, which was recently acquired by

Chevron

(CVX) - Get Report

, as well as

MBNA

(KRB)

, which was purchased by

Bank of America

(BAC) - Get Report

.

TheStreet.com's

Gregg Greenberg spoke with Perkins about how his computer models -- and his intuition -- have helped him pick winners.

To view Gregg Greenberg's StreetWatch interview with Perkins, click here.