Today we are going to take a look at the top holdings of portfolio manager Robert Foo. Foo uses market momentum to determine his investment strategy. During a bull market Foo invests in large-cap equities as well as exchange traded funds (ETFs) that are underleveraged. Being underleveraged can have an adverse affect on earnings per share and can make some investors nervous since the company has too little responsibility in terms of debt repayment. When the market experiences a peak, Foo moves into bond ETFs with a market short hedge.
One of the top positions in Foo’s portfolio is Valero Energy Corp (NYSE: VLO) a petroleum refining company that also markets its own product. In December 20009 this large-cap company’s stock fell in value to its lowest levels in 6 years. Since then it has risen, although it has been struggling to make any real headway. Their stockholder equity has been steadily declining over the past three years as has their net income. With the energy sector still struggling for decisive direction, it is unknown how long it will take for their financials and stock performance to improve.
With properties like The Venetian, The Palazzo, and The Sands, Las Vegas Sands Corp (NYSE: LVS)properties are a favored pick of luxury travelers. While 2009 was a tough year for LVS investors, 2010 has shown the stock rising to slow, but consistent levels. Tourism has been hit hard by the global economic crisis, but many casinos in Las Vegas have not experienced the same lull as other tourist hot spots. Total stockholder equity in LVS was up more than $2m in 2009 and the company’s gross profit has not shown any adverse effects. Their earnings per share (EPS) is low but their EPS for December 2010 is expected to increase.
