Mason D. King is the Principal and Vice President, Portfolio Management/Equity Research of Luther King Capital Management. Earlier, he was an equity analyst at Hester Capital Management and a private equity investment analyst at Pacesetter Capital Group and Crates Thompson Capital. His value orientation for finding both domestic and international stock return winners is detailed in his exclusive interview with the Wall Street Transcript.
Mr. Kin profiles the firm philosophy regarding superior investment themes: “…we prefer high-quality companies as measured on any absolute measure, and so not just against a small, narrow industry comp group but also how those return profiles match up against what our expected returns would be for any investment that we might have. We measure that against an ROE, return on equity, or return on tangible common equity or return on invested capital, which is just your typical analysis. And so we also break it down into the components, and we want them to be able to reinvest this free cash flow at those high rates. So we also want to see high free cash flow generation and attractive incremental margins.”
Employing this criteria results in specific stock selections. “One that quickly comes to mind in the small-cap space is Banc of California (NYSE:BANC), and it’s a little bit of a special situation. ”
“They were doing some things on their securities book that was also adding some lack of visibility, and they were bringing in a lot of capital. They had some private placements that added to the capital capacity that they had, but they had poor transparency. They had volatility or uncertainty around their earnings, and they had questionable board oversight, and there were some shorts that came in and highlighted and actually made some false accusations, which was really too bad because they were ill-founded, but they highlighted some of the concerns around the transparency and the oversight.
So there was a management change. ”
To see more of the stock picks that meet with this level of scrutiny with Mason King, read the entire interview at the Wall Street Transcript.
Mason King Researches the World for His Top Picks for Luther King Capital Management
November 10, 2020
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Novartis (NYSE:NVS) and Genentech (VTX:ROG) Veterans Peter Maag and Sasha King Team Up at Diagnostic Testing Company CareDx, Inc. (NASD:CDNA)
October 06, 2017
Core & Main (NYSE:CNM) is a Top Stock Pick from the Financial Times/Starmine Top Stock Picker in Construction Materials
August 30, 2023
