Wayne Peters - Peters MacGregor Capital Management

[Guest hellsten]

This was an interesting article about Wayne Peters and Peters MacGregor Capital Management (really bad headline, so didn't want to make it the subject of this post):

http://www.afr.com/p/personal_finance/smart_money/trade_secrets_of_contrarian_investor_mjTRozHgorsvXn0qIF2KgI

 

Sitting in a spartan Bondi Junction office in Sydney, fund manager Wayne Peters recently received an email from Warren Buffett. The billionaire “value” investor congratulated Peters on his 50th birthday, assuring him he was “still a young pup”. “I don’t think anyone hits their prime until about 75 or so,” the 83-year-old Buffett said.

 

Total return since inception in 2004 has been 86.77% vs. MSCI 62.23% (beat the index by 1.6% per year):

http://www.petersmacgregor.com/wp-content/uploads/2014/06/May-2014-Global-Fund-Report.pdf

 

He likes RBS:

“The Australian banks are of zero interest,” he says. “We think they’re 30 to 40 per cent overvalued and there could be more downside in a correction as markets can overshoot.”

 

Peters does, however, have three international banks in the 17-stock Peters MacGregor portfolio (in which he invests over 90 per cent of his wealth): Royal Bank of Scotland, Wells Fargo and Bank of America.

 

“On any metric they are significantly cheaper than Australian banks.” One favoured play is RBS, which he thinks is trading at a 40 per cent discount due to concerns about the British government’s 82 per cent ownership stake.

 

The preferreds, e.g. NYSE:RBS-N, have an attractive yield.

 

Weird that there's no RBS thread on this forum. Lots of drama to discuss :)

[ASTA]

Thanks Hellsten,

 

I am for sure going to follow him as he likes ASTA ;D