Google Inc (NASDAQ:GOOGL) and Gilead Sciences, Inc. (NASDAQ:GILD) are on Daniel Chung’s sights and the executive explained why in a recent interview with CNBC.
According to the Fred Alger Management CEO & CIO, the steady and slow economy is a great environment for stock investors. If there’s one area of volatility, Chung said that it’s in the bond market. He added that the government bond market last year was very volatile and that bond investors has gotten a gift this year as they recovered some of the 8-20% losses they had last year. He continued that he thinks it is time to get out of bonds and into equities.
The Fred Alger Management executive was then asked what the typical holding period for a stock in their portfolio is. He responded by saying that they have numerous strategies in place in his firm but that if he had to identify a typical holding period, it would be nine months to three years.
Chung was also asked what areas he sees value in at the moment and give an example of a stock that is in that area which would be beneficial to buy and keep for a period of 9 months to three years. Chung responded that both Google Inc (NASDAQ:GOOGL) and Gilead Sciences, Inc. (NASDAQ:GILD) are stocks that are among their best long-term value holdings. He revealed that these stocks are actually over their three-year mark.
He said that both Google Inc (NASDAQ:GOOGL) and Gilead Sciences, Inc. (NASDAQ:GILD) are examples of stocks, “that recently, even as the market has been making new highs, as growth stocks, they have sold off significantly from their peaks and I think they’re offering excellent growth and actually value for investors right now.”
Asked why he likes Google Inc (NASDAQ:GOOGL), Chung said that the company is highly innovative and that the stock is trading 15 times next year’s earnings while top-line growth in the company’s core business is at 20%.
Watch the video below where Chung also talked about the current troubles with bond yields.
Investors in Google Inc (NASDAQ:GOOG) includes Malcolm Fairbairn’s Ascend Capital which reported a 21,600-share stake in the company by the end of March. Matthew Tewksbury’s Stevens Capital Management also reported a 26,151-share stake in the company with a value of about $29.15 million.
Among the shareholders in Gilead Sciences, Inc. (NASDAQ:GILD) is Daniel Arbess’ Perella Weinberg Partners with 104,000 shares. Nantahala Capital Management managed by Wilmot B. Harkey and Daniel Mack also has 65,000 in the biotech company.