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July 11, 2003 at 08:00 PM
Nothing gets Jeff Auxier more excited than to see a great company with bad headlines.
That’s when he pounces. He might watch a favorite company for months, or even years, waiting for a chance to buy it on the cheap.
When it’s hammered by bad news — news that he’s convinced is only a temporary setback — he runs in and buys shares from panicking bulls.
Take HCA Inc (HCA), the nation’s largest for-profit hospital group. Citing a slowdown in flu cases, in April it said it would miss analysts’ earnings forecasts. The stock had been as high as 52 the previous June, but tumbled on the news to 27.
Auxier, 44, who runs Auxier Focus Fund (AUXFX), thought it was a great buy at 31 and jumped on it. So far, it’s bounced back to 32.
“Trends have been weak,” said Auxier, referring to weakness among hospital stocks. “But the economy is also weak. When the economy improves, these stocks should do well.”
Auxier isn’t wedded to the stock market. He’ll buy any asset class he thinks offers opportunity.
“We buy whatever offers the highest return with the least risk,” he said.
Last October, as stocks hit a bear-market low, he put 30% of the fund into corporate debt.
