Bill Hench in MarketWatch
article 09-18-2018

Bill Hench in

Bill Hench talked to Philip Van Doorn of MarketWatch about the prospects for aerospace and defense stocks as the U.S. military budget is set to increase.


MarketWatch recently featured Bill Hench in an opinion piece titled “Aerospace And Defense Sector May Keep Flying High For Years to Come” by Philip van Doorn.

Read the piece here.

The piece quoted “three veteran money managers,” including Bill, about how aerospace and defense (A&D) stocks are performing after federal tax cuts were implemented this year and the U.S. military budget is set to increase. “The nice thing about this industry is you do not have to guess what is going to happen,” Bill said.

“He pointed to significant barriers to entry for defense contractors of all sizes as being an important advantage for the subsector,” the article said. Bill noted that Carpenter Technology and Haynes International are two notable supply companies for defense contractors, and he also highlighted Wesco Aircraft Holdings as a supply-management services and company supplies components corporation servicing mainly aviation companies around the world.

“You and I are not going to form a company that makes landing gear tomorrow, from scratch,” Bill noted. “It is highly specialized and tough to get new entrants.”

“In a market where people are worried about trade and interest rates, this is a well-established channel with good funding,” he added.

Read the piece here.

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Average Annual Total Returns as of 6/30/18 (%) 

Opportunity 6.72 17.23 12.24 11.40 11.15 11.48 11.93 12.61 11/19/96
Russell 2000 7.75 17.57 10.96 12.46 10.60 10.50 8.03 8.90 N/A

Annual Operating Expenses: 1.18% 

1 Not annualized.

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Percentage of Fund Holdings As of 6/30/2018 (%)

Carpenter Technology 0.9%
Haynes International 0.7%
Wesco Aircraft Holdings 0.8%

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