Navellier Forecasts Earnings Deceleration (AMZN, GOOG, SCCO, OXY, BRCM, PCP, ESRX, SWN, MHS)
Growth guru and self-described “fundamental quant” manager Louis Navellier shared insights with Forbes in a recent interview. Navellier, who is well known for his growth-focused investment newsletters, including “Blue Chip Growth,” is the founder of Navellier & Associates, an investment advisory firm with approximately $3 billion under management.
A look at Navellier & Associates’ top-15 U.S.-listed equity holdings from the end of 2009 shows that the firm was invested in an eclectic mix of growth names ranging from dotcoms Amazon (AMZN) and Google (GOOG) to commodity players Southern Copper (SCCO) and Occidental Petroleum (OXY). Navellier told Forbes that his firm values equities based on selection models framed around earnings momentum, earnings surprises, or other fundamental metrics designed for each asset category.
As for the current state of the market, Navellier explained, “the market’s getting more narrow here, more fundamentally focused. And earnings are very good right now, but we expect them to decelerate here soon.” Over the past three months, the firm has seen its stakes in Broadcom (BRCM), Precision Castparts (PCP), and Express Scripts (ESRX) run by more than 15%. Meanwhile, Southwestern Energy (SWN) and Medco Health Solutions (MHS) are both laggards for the period slipping by more than -5%.
It will be interesting to see where Navellier was making moves during the first quarter. The deadline for 13F filings is getting closer, and after Navellier pared stakes in most of the firm’s top positions at the end of 2009, investors will be watching to see whether Navellier & Associates’ largest disclosed equity holdings were subject to any shake-ups in early 2010.
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