Morningstar Advisor - February/March 2009 - 14

10 Questions No Skinny-Dippers Here By Jerry Kerns 1 You haven’t ignored financials in the portfolio, but you weren’t burned by them. What led you away from the worst of the financial stocks? Manind Govil RS Large Cap Alpha GPAFX Manind Govil’s first turnaround was his dad’s portfolio. Govil was studying business as an undergraduate at the University of Bombay when his father handed over his faltering investments to his son to manage. It was an early indication that Govil possessed a knack for improving lagging portfolios. As a professional, he did it first at the mediocre Mercantile Growth & Income Fund, leading the fund during his nine-year tenure as manager to above-average returns. He then took over the struggling RS Large Cap Alpha in August 2005 and has proceeded to trounce his large-blend rivals. The fund’s three-year annualized return (through Dec. 31) is better than the returns of 98% of category peers. Over the same time span, the fund annually has returned 6.6 percentage points more than the S&P 500. To achieve these results, Govil and his excellent analyst team search for undervalued companies with strong competitive advantages and steady earnings growth. To top it all off, Govil has proved his commitment to shareholders by investing more than $1 million of his own money in the fund. Govil stopped by the Morningstar offices on Nov. 20 to answer our 10 Questions. Watch the video of our conversation at MorningstarAdvisor.com Our due diligence told us that conditions were fundamentally deteriorating and that these factors weren’t priced in. Some of these companies made what we thought were imprudent moves. Hence, we got out of them. We sold Countrywide in the first quarter of 2006. We sold AIG and Lehman Brothers in the second quarter of 2006. That’s what investing is all about. You’ve got to continue your due diligence and watch your companies very carefully. 2 Has the crisis made you reconsider any aspects of your investment process? It’s actually reaffirmed our investment process. There’s a saying, “When the tide goes down, that’s when you know who’s been swimming naked.” It’s sure been a time to get to know who’s been swimming naked. 3 Where are you finding the most opportunities to invest? You name the sector, and we can find competitively advantaged companies that are trading at good prices. It’s a wonderful time. 4 What names in your portfolio are you most excited about? Boeing BA, Enterprise Products Partners EPD, and MasterCard MA. 5 What in your portfolio has you most concerned? AMR Corp. AMR and Western Union WU. 6 If you could have one do-over in 2008, what would it be? Although the probability of a depression is very low, from the point of view of being conservative and doing scenario analysis, I wish we would have thought through more about how our companies would withstand a depression. 7 When you took over the fund three years ago, you revamped the analyst team. What qualities make up a good analyst? Integrity, a track record, intellectual curiosity, flexibility, and humility. 8 Why did you make managing money your profession? I love thinking through the competitive situation of a company—how it is going to change, how its competitors and customers are going to change—and then trying to value that information and determining if the company is mispriced. It’s not about watching stock prices go up and down every day. It’s about how things are going to play out in the long term. 9 What is the best book you’ve read the past year? The Wisdom of Crowds, by James Surowiecki. 10 The investing story of 2009 will be: . Survival of the fittest. The prudent will eat the imprudent. 14 Morningstar Advisor February/March 2009
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Morningstar Advisor - February/March 2009

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2009

Morningstar Advisor - February/March 2009
Contents
New on MorningstarAdvisor.com
Letter from the Editor
Contributors
Inbox
How Do You Gauge and Measure Risk?
No Skinny-Dippers Here
Heading to Shore
Investment Briefs
Weapons of Mass Destruction?
Déjà Vu All Over Again
A Failure to Gauge Risk
Five Areas to Find Opportunities
Getting a Read on Risk
Heavenly Returns
Greenspring Comes to the Rescue
How to Spot a Trustworthy REIT
Four Picks for the President
Find Succor in These Large Dividends
These Stocks Are Fiscally Fit
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks
Most Popular Variable Annuities
New at Morningstar
You Gotta Look Sharpe
Morningstar Advisor - February/March 2009 - Intro
Morningstar Advisor - February/March 2009 - Morningstar Advisor - February/March 2009
Morningstar Advisor - February/March 2009 - Cover2
Morningstar Advisor - February/March 2009 - 1
Morningstar Advisor - February/March 2009 - 2
Morningstar Advisor - February/March 2009 - Contents
Morningstar Advisor - February/March 2009 - 4
Morningstar Advisor - February/March 2009 - 5
Morningstar Advisor - February/March 2009 - New on MorningstarAdvisor.com
Morningstar Advisor - February/March 2009 - 7
Morningstar Advisor - February/March 2009 - 8
Morningstar Advisor - February/March 2009 - Letter from the Editor
Morningstar Advisor - February/March 2009 - Contributors
Morningstar Advisor - February/March 2009 - Inbox
Morningstar Advisor - February/March 2009 - How Do You Gauge and Measure Risk?
Morningstar Advisor - February/March 2009 - 13
Morningstar Advisor - February/March 2009 - No Skinny-Dippers Here
Morningstar Advisor - February/March 2009 - 15
Morningstar Advisor - February/March 2009 - 16
Morningstar Advisor - February/March 2009 - Heading to Shore
Morningstar Advisor - February/March 2009 - 18
Morningstar Advisor - February/March 2009 - 19
Morningstar Advisor - February/March 2009 - Investment Briefs
Morningstar Advisor - February/March 2009 - 21
Morningstar Advisor - February/March 2009 - Weapons of Mass Destruction?
Morningstar Advisor - February/March 2009 - 23
Morningstar Advisor - February/March 2009 - 24
Morningstar Advisor - February/March 2009 - 25
Morningstar Advisor - February/March 2009 - 26
Morningstar Advisor - February/March 2009 - 27
Morningstar Advisor - February/March 2009 - Déjà Vu All Over Again
Morningstar Advisor - February/March 2009 - 29
Morningstar Advisor - February/March 2009 - 30
Morningstar Advisor - February/March 2009 - 31
Morningstar Advisor - February/March 2009 - 32
Morningstar Advisor - February/March 2009 - 33
Morningstar Advisor - February/March 2009 - A Failure to Gauge Risk
Morningstar Advisor - February/March 2009 - 35
Morningstar Advisor - February/March 2009 - 36
Morningstar Advisor - February/March 2009 - 37
Morningstar Advisor - February/March 2009 - Five Areas to Find Opportunities
Morningstar Advisor - February/March 2009 - 39
Morningstar Advisor - February/March 2009 - Getting a Read on Risk
Morningstar Advisor - February/March 2009 - 41
Morningstar Advisor - February/March 2009 - 42
Morningstar Advisor - February/March 2009 - 43
Morningstar Advisor - February/March 2009 - 44
Morningstar Advisor - February/March 2009 - 45
Morningstar Advisor - February/March 2009 - 46
Morningstar Advisor - February/March 2009 - 47
Morningstar Advisor - February/March 2009 - Heavenly Returns
Morningstar Advisor - February/March 2009 - 49
Morningstar Advisor - February/March 2009 - 50
Morningstar Advisor - February/March 2009 - 51
Morningstar Advisor - February/March 2009 - Greenspring Comes to the Rescue
Morningstar Advisor - February/March 2009 - 53
Morningstar Advisor - February/March 2009 - 54
Morningstar Advisor - February/March 2009 - 55
Morningstar Advisor - February/March 2009 - How to Spot a Trustworthy REIT
Morningstar Advisor - February/March 2009 - 57
Morningstar Advisor - February/March 2009 - Four Picks for the President
Morningstar Advisor - February/March 2009 - 59
Morningstar Advisor - February/March 2009 - Find Succor in These Large Dividends
Morningstar Advisor - February/March 2009 - 61
Morningstar Advisor - February/March 2009 - These Stocks Are Fiscally Fit
Morningstar Advisor - February/March 2009 - 63
Morningstar Advisor - February/March 2009 - Mutual Fund Analyst Picks
Morningstar Advisor - February/March 2009 - 65
Morningstar Advisor - February/March 2009 - 66
Morningstar Advisor - February/March 2009 - 67
Morningstar Advisor - February/March 2009 - 50 Most Popular Equity ETFs
Morningstar Advisor - February/March 2009 - 69
Morningstar Advisor - February/March 2009 - 70
Morningstar Advisor - February/March 2009 - 71
Morningstar Advisor - February/March 2009 - Undervalued Stocks
Morningstar Advisor - February/March 2009 - 73
Morningstar Advisor - February/March 2009 - 74
Morningstar Advisor - February/March 2009 - 75
Morningstar Advisor - February/March 2009 - Most Popular Variable Annuities
Morningstar Advisor - February/March 2009 - 77
Morningstar Advisor - February/March 2009 - 78
Morningstar Advisor - February/March 2009 - New at Morningstar
Morningstar Advisor - February/March 2009 - You Gotta Look Sharpe
Morningstar Advisor - February/March 2009 - Cover3
Morningstar Advisor - February/March 2009 - Cover4
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