A company’s balance sheet can predict its future, argues Bryant VanCronkhite, lead manager of the $5 billion Wells Fargo Special Mid Cap Value fund. A significant amount of cash on a balance sheet, for example, can unlock a company’s dormant potential, whether it’s through a smart acquisition or reinvestment.
VanCronkhite, 36, aims to get an edge by buying companies with strong balance sheets, but only when Wall Street is mispricing their stock. “Of course, the market won’t give credit until after it sees something happening,” he explains.
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