At Schwab Impact, a PM Searches for Mispriced Equities

Sam Dedio and his team of analysts at Artio Global Management spend their time looking for “equities that are mispriced” for inclusion in one of Artio’s four mutual funds, and he’s convinced that “there’s still value out there” to be found.

One way the team finds those stocks is for every analyst to visit at least eight companies a month, talking “over and over again with management teams” in specific sectors, visiting competitors and suppliers to those companies, looking especially for those firms that have a product or service that has the potential to “change consumer or corporate buying behavior,” and those with superior human capital.

In an interview at the Schwab Impact 2010 conference in Boston on Wednesday, Dedio says he “doesn’t care about GDP,” but rather about those companies his team is evaluating “which will outperform.” With a current focus on the small-cap sector, Dedio says that the average small company is deriving a higher percentage of its revenue overseas, since localizing a presence in foreign market is much easier, citing how quickly even a small company can set up a foreign-language website and fulfill orders through that website.