GoodHaven Fund Bounces Back With New Investment Strategy Focused on High Return Companies
-
Larry Pitkowsky changed the GoodHaven Fund's investment strategy in late 2019 to pay less attention to macroeconomics, move on quicker from bad investments, and hold onto successful companies longer.
-
Since end of 2019, the GoodHaven Fund has outperformed the S&P 500 after years of underperformance.
-
The fund now focuses on high return-on-capital companies with growth potential before they get too popular.
-
Two "big wins" for the fund recently were homebuilding stocks Builders FirstSource and Lennar Corp, which Pitkowsky sees having further growth ahead.
-
Pitkowsky cites sticking with winners like Alphabet longer term rather than selling too early like he did previously with Microsoft as a key change.