Morningstar Advisor - October/November 2013 - (Page 18)

Investments à la Carte Five Picks for the Present Stock: Cloud Peak Energy CLD Fair Value Estimate $27 Morningstar Rating QQQQQ Stock Price Compared With Fair Value Estimate Daily Closing Price $40K Fair Value – Daily 30 20 09/12 12/12 03/13 06/13 Uncertainty High Economic Moat Narrow Cloud Peak is the third-largest coal miner in the United States. It is the lowest-cost player in the lowest-cost coal mining region in the world: the Powder River Basin. We think the region’s coal prices will increase from current levels over the next few years because its coal is a much more cost-effective option than natural gas for generating electricity. Forward P/E 10.7 Market Cap $933.8 million Cloud Peak runs its coal mining operations by forward selling the bulk of its future coal production for the upcoming year or two, which helps it to maintain just enough workers and equipment to meet its contracted output. We believe Cloud Peak enjoys a narrow economic moat, due primarily to its established position in the Powder River Basin. Elizabeth Collins Mutual Fund: American Century Value TWVLX Category 1 Large Value 40 $16K 30 Morningstar Rating QQQQ Fair Value - Daily American Century Value S&P 500 TR (IA Extended) (Index) 14 12 20 10 10 9/4/1210/26/1212/27/122/22/134/17/136/4/137/24/13 9/10/1211/1/1212/28/122/25/134/18/136/10/13 8/1/13 9/5/1210/29/1212/31/122/26/134/19/136/11/13 8/2/13 9/11/1211/2/12 1/1/132/19/134/12/136/3/137/22/13 9/6/1210/30/12 1/2/132/20/134/15/13 6/5/137/25/13 9/12/1211/5/12 1/3/132/21/134/16/13 6/6/137/26/13 9/7/1210/31/12 1/4/13 2/27/134/22/136/12/13 8/5/13 9/13/1211/6/12 1/10/133/1/13 4/23/136/13/13 8/6/13 9/14/1211/12/121/7/13 2/28/134/24/136/14/13 8/12/13 9/17/1211/13/121/11/133/4/13 4/25/136/18/138/7/13 9/18/1211/14/121/8/13 3/5/13 4/26/136/19/138/13/13 9/19/1211/15/121/14/133/11/13 5/1/136/20/138/8/13 9/20/1211/16/121/9/13 3/6/13 4/29/136/21/138/14/13 9/21/1211/19/121/15/133/12/13 5/2/13 6/24/138/15/13 9/24/1211/20/121/16/133/7/13 4/30/136/25/138/16/13 9/25/1211/21/121/17/133/13/13 5/3/13 6/26/138/19/13 9/26/1211/22/121/18/133/8/13 5/6/13 6/27/138/20/13 9/27/1211/23/121/21/133/14/13 5/10/137/1/13 8/21/13 9/28/1211/26/121/22/133/15/13 5/7/13 6/28/138/22/13 10/1/1211/27/121/23/133/18/13 5/13/137/2/13 8/23/13 10/2/1211/28/121/24/133/19/135/8/13 7/3/13 8/26/13 10/3/1211/29/121/25/133/20/135/14/13 7/4/13 8/27/13 10/4/1211/30/121/28/133/21/135/9/13 7/10/13 10/10/1212/11/122/1/133/22/135/15/13 7/5/13 8/28/13 10/5/12 12/3/12 1/29/133/25/135/16/137/11/13 10/11/1212/12/122/4/133/26/135/17/137/8/13 8/29/13 10/8/12 12/4/12 1/30/133/27/135/20/137/12/13 10/12/1212/13/122/5/13 3/28/135/21/137/9/13 8/30/13 10/9/12 12/10/12 2/11/134/1/13 5/22/137/15/13 10/15/1212/14/122/6/13 3/29/135/23/137/16/13 10/16/1212/17/122/12/134/2/13 5/24/137/17/13 10/17/1212/18/122/13/134/3/13 5/27/137/18/13 10/18/1212/19/122/14/134/4/13 5/28/137/19/13 10/19/1212/20/122/15/134/5/13 5/29/13 7/29/13 10/22/1212/21/12 10/23/1212/25/12 10/25/1212/26/12 11/7/12 11/8/12 11/9/12 12/5/12 1/31/13 4/11/13 6/7/13 7/30/13 12/6/12 2/7/13 4/8/13 5/30/13 7/31/13 12/7/12 2/8/13 4/9/13 6/17/13 8/9/13 8 9/3/1210/24/1212/24/122/18/134/10/135/31/137/23/13 09/08 09/09 09/10 09/11 Morningstar Analyst Rating 09/12 Expenses 1.00% Daily Closing Price If the stock market is as overheated as it looks, this mild-mannered large-value fund should hold up well in a correction. Lead skipper Phillip Davidson, who’s been at the helm since the fund’s 1993 inception, likes stocks that appear cheap, but he also demands they be leaders within industries with high Minimum Investment $2,500 Total Assets $2.9 billion barriers to entry. He and his team are also quick to sell holdings that begin to look pricey. This approach has led to fine absolute and risk-adjusted returns. Greg Carlson Dec-12 Separate Account: Artisan Global Opportunity Trust Sep-12 Category World Stock $14K 16000 Investment Style 7 Large Growth Artisan Global Opportunity Trust MSCI EAFE GR USD 14000 12 12000 10000 10 8000 02/13 05/13 08/13 6000 05/12 08/12 11/12 Sep-08 Jun-09Feb-10Oct-10Jun-11Feb-12Oct-12Jun-13 Oct-08 Jul-09 Mar-10Nov-10 Jul-11 Mar-12Nov-12 Jul-13 Nov-08 Aug-09Apr-10Dec-10Aug-11Apr-12Dec-12Aug-13 Dec-08 Sep-09 Jun-10Feb-11Oct-11Jun-12Feb-13 Jan-09 Oct-09 Jul-10 Mar-11Nov-11 Jul-12 Mar-13 Feb-09 Nov-09 Aug-10Apr-11Dec-11Aug-12Apr-13 Mar-09 Dec-09 Sep-10 Sep-11 Sep-12 Sep-13 Apr-09 Jan-10 Jan-11 Jan-12 Jan-13 May-09 May-10 May-11 May-12 May-13 Aug-12 Aug-13 Apr-12 May-13 Nov-12 Sep-13 Oct-12 Jun-12 Sep-13 18 Morningstar Advisor October/November 2013 Morningstar Rating — Number of Holdings 54 Although this separate account was just S&P 500 TR (IA Extended) (Index) launched in 2012, an identically run mutual fund American Century Value TWVLX (Artisan Global Opportunities ARTRX) boasts an excellent record since its September 2008 inception, and the team at the helm has generated superb results at other Artisan funds since 1997. Lead skipper James Hamel, who joined the team in 1997 as an analyst, and the rest of this veteran crew build a compact Annual Turnover 22% Management Fee 0.85% 40- to 50-stock portfolio of companies with healthy balance sheets that they believe are capable of strong, sustainable growth. The team’s other charges, Artisan Mid Cap ARTMX and Artisan Small Cap ATSX, are closed to new investors, but they manage a modest $2 billion in this strategy. Greg Carlson

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2013

Morningstar Advisor - October/November 2013
Contents
Contributors
Letter From the Editor
How to Make Social Media Work for You
Do Mutual Funds Still Have a Role?
More Personal Than Finance
How to Handle Your TIPS Positions
A Real Estate Veteran Starts From Scratch
Investments á la Carte
Investment Briefs
When to Say No
Take a Guarded Approach to Homebuilders
Fund Distribution Has Been Turned on Its Head. Now What?
Winning the Distribution Battle
Active ETFs Wait for Their Heyday
A Fund Firm Defies Indexing Trend
Piloting New Channels
A Good Fit
The Predictive Power of Fair Value Estimates
Does Being Prudent Pay Off?
Utilizing Utilities’ Total Return
Stuck in the Middle Is Not a Bad Place to Be
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Good Guys Win

Morningstar Advisor - October/November 2013

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