Although it is quite rare that value gurus sell stocks short, Robert Olstein has been selling short in his Financial Alert Fund. Accountant-turned fund manager spots values by looking behind the numbers. In the second quarter of 2004, Robert Olstein sold short American Italian Pasta Co. (PLB) at $ 31. After about six months he covered for $ 20, quickly made more than $ 1 million for his fund. He is currently short two files: Computer Sciences Corp. (CSC) and Fleetwood Enterprises Inc. (FLE), although things do not always go that smoothly.
Robert Olstein is definitely one of the best money managers (which is why he's Hall of Fame Guru Focus). The strategy of looking behind the numbers has brought his fund a 15.5% average annual return of more than 10 years after all costs. The only downside was the year 2002, from 19%. In 2000, the year of the tech bubble burst, the fund increased by 12%, and in 2001, an increase of 17%.
Robert Olstein began shorting Computer Sciences Corp. (CSC) in the first quarter of 2004 at an average price of $ 41. He said that the accounts of CSC is not in line with economic reality, CSC is worth about $ 30. The price of CSC not down, however. He then shorted more shares. But the price of CSC went up, by the fourth quarter of 2004, the price of CSC was $ 56. It came down to what in the first quarter of 2005, Robert Olstein was confident enough to share again more recently. From the end of the first quarter, his short position in CSC total of 504 500 shares at an average price of $ 42. As of this writing, the price of CSC is $ 46.4.
The other short selling of Robert Olstein is Fleetwood Enterprises Inc. (FLE). He thinks Fleetwood Enterprises Inc. is worth about $ 5-6 per share. He sold short 1.1955 million shares of FLE at about $ 9.2 per share in the first quarter of 2005. Now Fleetwood has a price of $ 9.5 per share.
Remarkably, another highly respected value manager, GuruFocus guru, Robert Rodriguez, disagreed with his colleagues Olstein value. In the fourth quarter of 2004, 269,500 shares of FLE Rodriguez added to his holdings at about $ 14 per share. If the share price dropped to $ 9, 2.2619 million more shares, bringing its total position in Fleetwood makes to 3.7144 million shares he added.
Who is right, Robert vs. Robert?
Dr. Charlie Tian is the Director of Research at GuruFocus.com, a website follows the stock picks and market insight of guru investors such as Warren Buffett, George Soros, etc.
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