Wintergreen Takes An Evergreen Approach To Stock Selection

Wintergreen Takes An Evergreen Approach To Stock Selection

A Seeking Alpha Contribution


  • WGRNX is a go anywhere fund with a current focus on Asia’s emerging middle class.
  • Manager David Winters looks for companies showing a trifecta of strong management, improving situation and undervalued shares.
  • The biggest drawback to the fund is the 1.85% expense ratio.

Established in 2005, the two-star Morningstar rated Wintergreen Investor Fund (MUTF:WGRNX) is a world stock category fund that seeks capital appreciation. The fund invests in stocks or convertible securities that manager David Winters believes are available at a discount to their intrinsic value. The fund invests in domestic and foreign issues of any size, including those from emerging markets.

Investment Strategy

Investment manager David Winters identifies securities through extensive analysis that includes book value, cash flow and earnings multiples. The goal is to select stocks that constitute what the fund manager calls a “trifecta.” These are stocks with good value issued by companies with shareholder-oriented management that are demonstrating improved business operations. The portfolio typically holds around 30 individual positions for the long-term while attempting to minimize turnover. This strategy often leads to owning shares in cash-rich companies that pay dividends or buy back shares. Shares are sold when valuation targets are met. The fund typically maintains 10 percent cash in order to capitalize on opportunities as they occur. WGRNX may invest in arbitrage opportunities that result from mergers, acquisitions, spin offs and consolidations as well as tender offers and liquidations. In addition to arbitrage opportunities, the fund may also take an activist role if the team anticipates that this position will benefit the investment. To minimize risk, the manager may engage in hedging strategies, such as owning gold and foreign currency swaps, purchasing put or call options and shorting stocks….To Continue Reading Please, Click Here.

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