Magazine article Black Enterprise

On the Rebound

Magazine article Black Enterprise

On the Rebound

Article excerpt

Kenwood Group's Barbara Bowles still awaiting a value-stock comeback

For the last several years it has been all about growth in the stock market, and last year was no exception. Fast-growing companies with rising earnings reigned, while ugly duckling "value" stocks went largely unappreciated.

All of which made it a pretty tough environment for value investors like Chicago-based Kenwood Group Inc. president and chief investment officer Barbara Bowles, who seeks small to mid-size companies with low prices, robust business operations and strong earnings growth. Bowles' picks for last February's Private Screening tell the story. Of the five, just one--The Limited Inc. (NYSE: LTD)--rose from its recommended price. Its 53.11% gain pushed the portfolio into the black, for a gain of 62%.

The stock of the Columbus, Ohio, clothing retailer was trading at $25.38 when Bowles picked it; 12 months later it had risen to $38.86. Larry Jones, Kenwood's executive vice president and senior portfolio manager, speaking for Bowles, who was unavailable for comment, points out that The Limited's gain is even bigger if you factor in shares that holders received in the August 1999 spin off of Limited Too, which markets girls' clothing. Limited stock holders picked up a share of Limited Too for every seven shares of Limited Inc. they owned, which amounted to about $2.41 a share. Jones said Kenwood sold a portion of its Limited stake to take some timely profits.

Jones points out that the Kenwood Midcap Value portfolio had an 18. …

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