About

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Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

Friday, July 15, 2005

Digging Into Natural Resources Stocks

A value manager for 31 years, Andrew Pilara has piled up an impressive record in natural resources investing. Since its launch in 1995, his no-load fund, RS Global Natural Resources, has beaten the S&P 500's 9% return by three percentage points.

RS Global Natural Resources (RSNRX), with $1.1 billion in assets, also gets good performance grades from FORBES: B and A+, respectively, for up and down markets. So what's Pilara's take on natural resources these days? Bullish. "For the rest of the decade," he says, "this is the place to be."

Bold words, given the frothy prices for many commodities and the stocks of companies doing business in them. But Pilara, a self-proclaimed contrarian, waves off talk of a commodities bubble. "If you look at the resources stocks we're invested in," he says, "they sell at single-digit multiples."

Full story at Forbes.com