The Resource and Commodity model managed by John Rodgers utilizes a macroeconomic approach to commodity and resource investing. To further refine his choices he uses a fundamental and discounted cash flow analysis.
The top holding in the model is Exxon Mobil Corp (NYSE: XOM). XOM’s net revenues fell from $425.1 billion in 2008 to $275.6 billion in 2009. The company’s total liabilities grew in 2009, and quarterly financials reveal that they have continued to do so in 2010. On September 13th, 2010, the company had a 2.90 percent dividend yield and a price to earnings ratio that surpassed competitors. The company’s stock price took a dive this year, closing as low as $ 56.57 on July 2nd—a price it hadn’t been near since it closed at $ 56.65 on June 13th, 2006. Their 2009 Financial and Operating Review cites a company goal of reducing environmentally impacting incidents to zero and use of technological advances to help differentiate and improve processes.
The next largest holding is Bunge Ltd (NYSE: BG). BG is a global agribusiness and food company. Their net revenues and net income fell in 2009—but their total liabilities were also reduced. Their shareholder equity increased in 2009 and their second quarter 2010 financial results show a 468 percent increase in net income year-over-year and a 389 percent increase in earnings per share year-over-year. The company’s stock has struggled this year, falling from a closing price of $71.29 on January 8th to $46.29 on July 29th after they released their second quarter 2010 financial results and reduced their earnings forecast.
