Why one fund manager thinks renewed pessimism has created a 'stock picker's market'

Pessimism and fear are creating opportunities in the second half of 2010 for those with cash, said Terry Diamond, chairman of Talon Asset Management.
JUL 12, 2010
By  Bloomberg
Pessimism and fear are creating opportunities in the second half of 2010 for those with cash, said Terry Diamond, chairman of Talon Asset Management. “I think we’re going to be in a stock picker’s market,” said Diamond, 71, in an interview at Bloomberg headquarters in New York today. “We were probably too optimistic coming into April and a little over pessimistic right now and that creates opportunities for those that have dry powder.” The Standard & Poor’s 500 Index has fallen about 6.6 percent this year on concern that widening budget deficits in Europe might derail global growth. Diamond said his investment-management firm, based in Chicago, is looking at companies that make products that people “need as opposed to what they want.” The firm recently bought CVS Caremark Corp., Energizer Holdings Inc. and Cintas Corp., and is looking at companies such as Carnival Corp., he said. Talon has $1.2 billion in assets spread among three hedge funds, individually managed accounts, private equity and venture capital. Diamond oversees Talon’s investment activities and serves as a portfolio manager of Talon Opportunity Partners L.P., a hedge fund. Diamond co-founded the firm, which started managing assets in 1984 and is owned by its employees. They require a minimum investment of $1 million and charge clients a fee of 1 percent, he said. The Chicago native worked at companies including Lehman Brothers Holdings Inc. before Talon and has a law degree from the University of Chicago Law School.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.