Valuations are not compelling for the market as a whole, but selectively there are some real bargains, says manager John Osterweis. He makes the case for three portfolio holdings, including REIT Newcastle.
Dan Culloton: Recognizing, of course, that while you're macro aware, that you're a bottom-up stock picker, you look at the portfolio, and reflecting on what you just said, it doesn't hold a lot of cash, probably the least amount of cash that's held in recent memory. But yet the portfolio is still very selective. So it's not like you're finding a wide range of opportunities out there. It's still a very focused portfolio. You don't seem to add or subtract a lot of holdings between quarters. So is it safe to assume that, while you think valuations are OK, there not a lot of screaming bargains out there?
John Osterweis: I think, in general, valuations are OK; on a gross basis they are not compelling for the market as a whole, but selectively there are some real bargains. When we find them, we move them into the portfolio.
Dan Culloton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
