A Pick for Presidio

02/03/2006 12:00 am EST

Focus:

Sheldon Jacobs

Author, Investing Without Wall Street, Five Essentials for Financial Freedom

Sheldon Jacobs literally "wrote the book" on no-load funds, penning the first book on the topic over three decades ago. Here, along with publisher and editor Mark Salzinger, he offers his favorite play for the year ahead – the Presidio Fund.

"One way to make more money than the investment masses is to invest in young funds from experienced managers before the rest of the country catches on. Devotees of this tactic should have felt blessed in May 2005 when Kevin O’Boyle announced the launch of Presidio Fund (PRSDX). In the six-month period ended December 31, 2005, Presidio gained 12.6%.

"Kevin was the long-time co-manager of the Meridian Value fund during that fund’s heyday, which lasted from the mid-1990s until late 2003. Kevin, who in fact picked virtually all of Meridian Value’s stocks for most of the period and managed its portfolio on a day-to-day basis, guided the fund to an annualized return of more than twice the gain of the S&P 500. In addition, Meridian Value was a 'Best Buys' fund in our model portfolio during part of Kevin’s tenure at the fund.

"A two-time graduate of Stanford University (a degree in economics and an MBA), Kevin has a keen analytical mind that underlies his stock-picking technique. At heart, he likes to buy quality small and mid-size companies when they are out of favor but showing signs of an operational rebound. Though this approach sounds simple, few managers have executed it as smartly—or made their shareholders as much money—over the years as Kevin has in the process."

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