Morningstar Advisor - December 2013/January 2014 - (Page 18)
Investments à la Carte
Five Picks for the Present
Stock: Exelon EXC
Fair Value Estimate
$42
Morningstar Rating
QQQQQ
2013 Stock Price Compared With Fair Value Estimate
Daily Closing Price
$60K
Fair Value - Daily
50
40
30
11/08/12
02/08/13
05/08/13
08/08/13
Uncertainty
Medium
Economic Moat
Wide
Exelon's primary business as the largest U.S.
nuclear power plant owner long has been
a profit machine and an industry-leading source
of shareholder value creation for the company.
But power prices have crashed hard since
their 2008 highs and appear stuck at current
levels for at least the next two or three years.
That has resulted in a sharp drop in Exelon's
Forward P/E
10.6
Market Cap
$24.1 billion
returns. But the low operating costs and clean
emission profile of its nuclear fleet make
Exelon the utilities sector's biggest winner if
our outlook for higher power prices and
tighter fossil fuel environmental regulations
materialize. Exelon's world-class operating
efficiency ensures it will be able to capture that
upside. Travis Miller
Mutual Fund: Dodge & Cox International DODFX
60
Morningstar Category
Foreign Large Blend
50
$22K
40
Morningstar Rating
QQQQ
Daily Closing Price
Dodge & Cox International
MSCI EAFE GR USD
18 30
14 20
8/12/13
10/10/13
10/11/13
10/14/13
10/15/13
11/12/121/3/132/21/134/16/136/4/137/23/139/13/1311/6/13
11/13/121/4/132/22/134/17/136/10/13 8/1/139/19/13
11/8/12 1/1/132/19/134/12/136/3/137/22/139/12/1311/5/13
11/14/121/10/133/1/134/19/136/12/13 8/2/139/20/13
11/9/12 1/2/132/20/134/15/13 6/5/137/24/139/16/1311/7/13
11/15/121/11/133/4/134/22/136/13/13 8/5/139/23/13
11/16/121/14/133/5/134/23/136/14/13 8/6/139/24/13
11/19/121/15/133/11/13 5/1/136/19/138/12/1310/3/13
11/20/121/16/133/6/134/24/136/17/13 8/7/139/25/13
11/21/121/17/133/12/13 5/2/136/20/138/13/1310/4/13
11/22/121/18/133/13/13 5/3/136/21/138/14/1310/7/13
11/23/121/21/133/14/13 5/6/136/24/138/15/1310/8/13
11/26/121/22/133/15/135/10/137/1/138/19/1310/16/13
11/27/121/23/133/18/135/7/136/25/138/16/1310/9/13
11/28/121/24/133/19/135/13/137/2/138/20/1310/17/13
11/29/121/25/133/20/135/8/136/26/138/21/1310/18/13
11/30/121/28/133/21/135/14/137/3/138/22/1310/21/13
12/3/12 1/29/133/22/135/15/137/4/138/23/1310/22/13
12/4/12 1/30/133/25/135/16/137/10/13 9/2/1310/24/13
12/10/122/1/13 3/26/135/17/137/5/138/26/1310/23/13
12/5/12 1/31/133/27/135/20/137/11/13 9/3/1310/25/13
12/11/122/4/13 3/28/135/21/137/12/13 9/4/1310/28/13
12/6/12 2/5/13 3/29/135/22/137/15/13 9/10/1311/1/13
12/12/122/11/134/1/13 5/23/137/16/13 9/5/1310/29/13
12/7/12 2/6/13 4/2/13 5/24/137/17/139/11/1311/4/13
12/13/122/12/134/3/13 5/27/137/18/139/6/1310/30/13
12/14/122/7/13 4/4/13 5/28/137/19/139/9/1310/31/13
12/17/122/13/134/10/13 6/11/13 8/8/139/26/13
12/18/122/8/13 4/5/13 5/29/13 7/25/139/17/13
12/19/122/14/134/11/13 6/6/137/26/139/18/13
12/20/122/15/134/8/13 5/30/13 7/29/13 9/27/13
12/21/122/18/134/9/13 5/31/13 7/30/13 9/30/13
12/24/12 2/25/134/18/136/7/13 7/31/13 10/1/13
12/25/12 2/26/13 4/25/136/18/13 8/9/13 10/2/13
12/26/12 2/27/13 4/26/13 6/27/13 8/27/13
12/27/12 2/28/13 4/29/13 6/28/13 8/28/13
12/28/12 3/7/13 4/30/13 7/8/13 8/29/13
12/31/12 3/8/13 5/9/13 7/9/13 8/30/13
1/7/13
1/8/13
1/9/13
7/26/13
8/12/13
7/11/13 9/5/13
7/18/13
10
7/11/13
11/08
11/09
11/10
11/11
Nov-08
Morningstar Analyst Rating
Fair Value - Daily
11/12
Expenses
0.64%
Dodge & Cox is in some ways a stodgy firm.
Its long-tenured investment team typically sees
little turnover, it goes decades without
launching new funds, and its managers buy and
sell stocks at a glacial pace. But this fund is no
shrinking violet. It will buy beaten-down fare
and keep adding to positions on the way down
Minimum Investment
$2,500
Total Assets
$51.5 billion
if the team is convinced it's right, and the fund
often owns a hefty stake in emerging-markets
stocks. (Its weighting was recently triple
the foreign-blend category norm.) So, the fund
isn't for the faint of heart. But while its returns
can be volatile, the fund has generated
an excellent long-term record. Greg Carlson
Nov-12
Separate Account: Luther King Capital Management Equity
Morningstar Category
8
22000Mid-Cap Growth
18000
$24K
Investment Style
8 Mid-Cap Growth
Luther King Capital Mgmt Equity
S&P 500 TR
14000
17
10000
10
6000
Nov-08 Jul-09 Mar-10Nov-10 Jul-11 Mar-12Nov-12 Jul-13
Dec-08Aug-09Apr-10Dec-10 Sep-11 Jun-12Feb-13Oct-13
Jan-09Sep-09 Jun-10Feb-11Oct-11 Jul-12 Mar-13
Feb-09Oct-09 Jul-10 Mar-11Nov-11 Aug-12Apr-13
Mar-09Nov-09 Aug-10Apr-11Dec-11 Sep-12 Jun-13
Apr-09Dec-09 Sep-10 Jun-11Feb-12Oct-12 Aug-13
May-09Jan-10 Oct-10 Aug-11Apr-12Dec-12 Sep-13
Jun-09Feb-10 Jan-11 Jan-12 Jan-13
May-10 May-11 May-12 May-13
Oct-12
Dec-12
Sep-12
Oct-12
Nov-12
Sep-12
11/08
11/09
11/10
11/11Jul-12
11/12
Dec-12
Oct-12
Sep-12
18 Morningstar Advisor December/January 2014
24000
Morningstar Rating
QQQ
Number of Holdings
38
This strategy's conservative take on largegrowth investing tends to shine in tough times.
Lead manager Luther King and the veteran
team backing him focus on companies
that generate sustainable high returns on
invested capital without taking on too
much leverage that they can hold for years
(annual portfolio averages just over 20%). They
also diversify the portfolio broadly, often
Annual Turnover
65%
Total Strategy Assets
$643 million
stashing less than 20% of assets in the top 10
holdings and typically avoiding big stakes
in a particular sector. The result has been
strong risk-adjusted results over the long haul.
If the stock market stumbles after its big run
since the start of 2012, this strategy should hold
up relatively well. Greg Carlson
Table of Contents for the Digital Edition of Morningstar Advisor - December 2013/January 2014