It could be the most creative name in money management, and it's the official moniker for a strategy to be introduced this quarter by Key Asset Management Co., Cleveland.
Table Pounders will invest in a concentrated portfolio of 10 stocks. "We're very research-oriented," said Rick Buoncore, chief executive officer. "We've got 15 people here who do nothing but look at stocks. This strategy will invest in the stocks that make these analysts smash their fists onto the table, yelling `Buy it! Buy it!' We'll invest in the best ideas they're screaming about."
Miles Henderson, director of research, holds what might end up being the hot seat as portfolio manager of the strategy. He will look for strongly undervalued companies with very strong growth prospects among the ideas yelled at him across the table at Key Asset's morning investment meetings, said Mr. Buoncore. Textron Inc., which was at $98 a share in May 1999 and is trading at $46 now, is a good example of a company with diverse businesses that likely will accomplish a turnaround with cost savings and likely would be a candidate for the strategy, Mr. Buoncore said.
Despite all of the shouting, Mr. Henderson will keep the amount invested in each company around 10% of assets and will buy and hold. An advisory committee will help keep Mr. Henderson safe and sane, with Mr. Buoncore and other asset management executives running interference between the analysts and the portfolio manager.
"We believe so strongly in the strength of our stock-picking abilities that we are all putting some of our own money into the strategy," said Mr. Buoncore.
Key Asset Management manages about $75 billion, about half of which is institutional. Business in 2000 was excellent, Mr. Buoncore said, with $14 billion in net new assets flowing into the bank subsidiary. Another new strategy that will make its debut in 2001 will be a fixed-income-plus investment style that will combine core fixed-income securities with convertibles, Mr. Buoncore said.