Picks From Tom Forester, A Manager Who Made a Profit in 2008

Forbes briefly profiles the stock picks of Tom Forester, the fund manager who achieved a slight gain in 2008 when the S&P 500 plunged 37%. Forbes reports that he identifies the natural gas pipeline provider Spectra Energy Partners as a “green light” because it “has little exposure to commodity prices” and a 7% dividend yield. He suggests a “yellow light” for Pfizer because “he thinks its middle-of-the-pack multiple (14 times earnings) could expand a bit.”… Read More

Forester: More than Meets the Eye in Housing

Fund manager Tom Forester, who was the only equity fund manager to make money in 2008 when the housing and financial crises rocked markets, says issues still lurk beneath the surface of the rebounding housing market. While foreclosures and delinquencies have declined quite a bit, Forester tells Investor’s Business Daily that many foreclosed homes have been bought in recent years by hedge funds or wealthy investors, who wanted to rent out the properties to make… Read More

Forester Worried Tapering Will Lead To Sell-Off

Tom Forester, whose fund was the lone equity mutual fund not to lose money in 2008, says the unwinding of the Federal Reserve’s quantitative easing policies could be a catalyst for a stock market downturn. Forester tells 4-traders.com that the Fed’s asset-purchasing plans have had unintended consequences, “one of these being that you’ve got kind of the stock market is bubbling, if you will. I won’t say it’s in a bubble but it’s going that… Read More

Forester Cautious and Defensive

Fund manager Tom Forester released his third quarter commentary earlier this month, and his message was one of caution. “As risks have increased, we have increased our protection,” Forester wrote. “If risks subside or are priced in, we will gladly reduce our protection. But until the market more fully reflects these risks, we will remain cautious.” According to Forester Value’s site, the Forester Value Fund had 23.5% of its portfolio in cash as of the… Read More

Top International Managers Staying Defensive

Two international mutual fund managers with stellar long-term track records, Tom Forester and Robert Wyckoff Jr., have been continuing to beat the market recently using defensive approaches.  Forester has outperformed other funds in his category recently by sticking with several consumer staples stocks, including spirit-maker Diageo, according to The New York Times. Wyckoff’s fund, meanwhile, has been helped by defensive stocks like British American Tobacco, Diageo, Heineken, Roche, and Novartis. Both Forester and Wyckoff are… Read More

Forester Defensive But Still Finding Value

Tom Forester, who has a stellar long-term track record and headed the only long-oriented stock fund to post a positive return in 2008, is again playing defense. But that doesn’t mean he’s shunning stocks — Forester still has about 80% of his fund in stocks. “If you just stay in money markets, you might miss out when the market goes down, but you also miss out when the market goes up,” Forester tells InvestmentNews. “And… Read More

Forester Sees a Return to High Quality

Top value fund manager Tom Forester says the market has begun shifting away from junk-type stocks and back toward quality, and he thinks the end of the Federal Reserve’s quantitative easing program is part of why that trend will continue for several quarters. “The pendulum is swinging back toward quality. Since early 2009, low quality (usually high beta) stocks have been on a tear relative to high quality stock,” Forester writes in his second-quarter update.… Read More

Forester Looks for Downside Protection

Top value investor Tom Forester, who was the lone equity fund manager to post positive returns in 2008, is worried about the U.S. and global economies and is thus keying on high-quality stocks that can weather tough times. “The U.S. is running out of room to run deficits or print money,” Forester said at the Morningstar Investment Conference, according to MarketWatch. “We’re using up most of our bullets and we don’t know how it will… Read More

Forester Sees “Yellow” Light for Market

Fund manager Tom Forester says he sees the market flashing a “yellow light” rather than a green or red one, and he’s focused on healthcare and consumer staple stocks. “Our cash position is around 18%, which for us is cautious, but not extremely so,” Forester tells Morningstar.com. “It is a yellow light instead of a red or green light.” Forester says he sees current valuations are “neutral”, adding, “There is some concern that margins are… Read More

Forester’s “Perfect” Stocks for 2011

Tom Forester, whose Forester Value fund has an exceptional long-term track record, recently offered his “five perfect stocks for 2011”. “Time will tell just how close to perfection his picks are,” writes MoneyWatch’s Conrad DeAenlle, “but Forester … offers an interesting list of companies that are hiding in plain sight — mostly household names whose neglect or avoidance by investors leaves them trading at bargain valuations. Three of the five companies have the added quirk… Read More